Unraveled below are the latest most notable swings in the cryptocurrency arena for that last quarter of 2019.
- Bitcoin is still the best performing asset despite a plunge in its price experienced in the past quarters
The third quarter of 2019 was marked by a decline in the value of Bitcoin. The pioneer crypto coin suffered a go down of more than 25%. Having hit a high of approximately $13800 in the second quarter, Bitcoin experienced a pullback to roughly $9100 at the beginning of the third quarter and touched a low of $8200 at the end of the same quarter. However, despite suffering a decline in value, Bitcoin still maintained dominance and was still the most traded asset in most cryptocurrency exchanges.
- Cryptocurrencies are still speculative assets due to their dramatic swings in prices
Ten years down the line, cryptocurrencies remain to be risky assets; crypto investors are still betting on the market behavior of the digital assets. Cryptocurrencies are still experiencing dramatic swings in their prices, making many merchants and consumers shun it as a means of transaction. The high volatility depicted by crypto coins paints them as a poor store of value, making them unattractive for most parties to embrace them as a means of payment for goods and services.
- Libra is widening the conversation about what money really entails
On June 18, 2019, Facebook announced that they would be introducing a new cryptocurrency in 2020-Libra. Backed up by other Silicon Valley top companies, including eBay, Mastercard, and PayPal, Libra continues to drive serious conversations from leading financial stakeholders about what money really entails. Based on the billions of people utilizing the Facebook platform, Libra could be the first cryptocurrency to be encountered by billions of users. The big question is, will Libra mark the end of the centralized state currencies?
- The demand for gold has not been adversely affected by the need for cryptocurrencies
Despite cryptocurrencies being viewed as ‘gold’ by the current generation, the real gold continues to enjoy high demand. A factor that can be highly attributed to the stability in the value of the latter compared to that of the virtual coins.
- Asset-backed stablecoins and algorithmic stablecoins
Finally, to address the issue of price volatility witnessed in the first generation of cryptocurrencies, stablecoins, and algorithmic stablecoins are gaining more popularity. They are digital tokens whose values are pegged to a fiat currency, which act as a control mechanism against the dynamic value characterizing the first generation of crypto coins.