Technology

What’s the topic about Bitcoin cryptocurrencies and blockchain technology?

I know Elon Musk is a fan, but what’s the fuss? When will the Bitcoin bubble burst?

Like the stock market, the crypto market is often exposed to extreme price fluctuations-both up and down. Tesla’s recent purchase of $ 1.5 billion worth of Bitcoin is just one example of how the crypto market will change.

For example, from late 2013 to early 2014, from mid-2017 to mid-2018, and as we’ve seen in the last few months, there have been a lot of cryptocurrency ups and downs.

Analyzing cryptocurrency movements over the 52 weeks, it is clear that the largest market capitalization has been seen in the last few weeks.

  • Bitcoin (the No. 1 cryptocurrency by market capitalization) has a 52-week minimum price of $ 4106 and a 52-week maximum price of $ 58,330 (which is 14.2 times farther away).
  • Ethereum (2nd in market capitalization) has a 52-week minimum price of $ 95 and a 52-week maximum price of $ 2036 (21.4 times)
  • Cardano (3rd in market capitalization) has a 52-week low of $ 0.01913 and a 52-week high of $ 1.48 (77.4 factorization)

(Information source: https://coinmarketcap.com, Accessed March 2, 2021. )

This level of fluctuation within a year is rarely seen in the equity market and generally does not occur only once in a particular cryptocurrency. It happens frequently and in some cryptocurrencies.

Blockchain illustration

Understand the blockchain ecosystem

Over the last few years, blockchain technology has made rapid progress as more companies, researchers and developers have embraced and began to understand blockchain technology.

The first generation blockchain platform had many limitations such as scalability, high energy consumption, and limited support for smart contracts.

Today, hundreds of projects and platforms are trying to improve various aspects of blockchain technology, involving hundreds of highly qualified researchers and thousands of skilled engineers.

Major global institutions believe that blockchain solutions can have a significant economic impact.

However, the realization of this possibility is due to technological advances, acceptance of blockchain solutions by the industry and the general public, legislation passed to regulate blockchain space, and the development of new business models based on technology. Depends. ..

Link to the crypto market

Recent cryptocurrency price increases may be partially or completely justified by changes in market participants’ perceptions of factors that influence the future outlook for blockchain platforms. However, in the long run, the value of cryptocurrencies will depend on the economic added value generated by the blockchain ecosystem.

Looking back on the 1990s and the dot-com boom, it was recognized that the use of the Internet would increase significantly and change the world. Hundreds of internet companies have emerged and started developing technologies, services, and applications.

Excessive speculation created a market bubble, and the crash forced many companies to shut down.

But, of course, the Internet has certainly turned out to be revolutionary, and some of the companies founded at the time are today one of the largest in the world.

When the potential of blockchain technology is realized, perhaps many of today’s blockchain platforms and projects cannot be reduced by significantly reducing or even eliminating them altogether.

However, it is quite possible that some of them will be big winners.



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