London, UK, 4th Oct 2021, – One of the FinancialCentre’s brokers, Michael Hirsch shares their pertinent review on the cryptocurrency landscape and growth. The broker thinks that cryptocurrency, specifically Bitcoin, is credible and has the potential to become a valid currency in the future. In addition, the FinancialCentre’s broker thinks that traders are opening their minds to the validity of cryptocurrencies as an asset class, especially because of their global accessibility; it is becoming increasingly globalized, making cryptocurrency trading an inevitable development. As such, clients are already using direct market access to buy and sell cryptocurrencies within their accounts.
Global Financial Economy will be influenced by cryptocurrency trading growth. FinancialCentre’s broker thinks that the global capitalist economy will be affected by increased trading in cryptocurrencies.
This is because a large number of traders who are not registered in cryptocurrency exchanges will be able to trade in cryptocurrencies. This increased trading can lead to more market liquidity, and potentially, higher valuations for the leading cryptocurrencies such as Bitcoin, Ethereum, and Ripple.
The FinancialCentre’s broker shared some concerns regarding cryptocurrencies. For one, the broker thinks that cryptocurrencies are experiencing supply constraints because there is a limited number of Bitcoins available in the market. Demand for bitcoins is high; the supply cannot meet it due to the decreased rate of bitcoin production.
Another concern is that Bitcoin’s increased valuation may affect its utility as a currency in the future because the value of goods and services in Bitcoins would be too high for most people to afford.
The FinancialCentre’s broker says that there is a possibility that cryptocurrencies can have a commodity status.
Cryptocurrency values are currently determined by demand and supply like commodity prices. It can be argued that cryptocurrency’s value is growing because of its investment status, but the FinancialCentre’s broker opines that this will not last long.
According to the broker, cryptocurrencies’ utility as currencies will eventually dominate their valuation because they are becoming increasingly abundant in the market. This is because they are produced, like gold, and the quantity of each cryptocurrency can be better understood with maturity.
FinancialCentre’s broker says that one of the factors that will bring more traders into the cryptocurrency ecosystem is the high number of investors now interested in cryptocurrencies.
The broker thinks that cryptocurrency exchanges must prepare for this increased demand by building more robust trading platforms.
Additionally, growing numbers of cryptocurrency investors will eventually move their trading from private exchanges to the more accessible and transparent trading platforms that are available.
The FinancialCentre’s broker believes that there will be continued growth in the digital trading platforms as these platforms are making it easier for new traders to start investing in cryptocurrencies– ultimately increasing their liquidity and valuation.
Cryptocurrency exchanges will be able to maximize this opportunity if they focus on building more efficient and scalable platforms. Low latency and high throughput trading engines along with complete order lifecycle management are some of the features that can contribute to cryptocurrency trading platforms.
According to the broker, cryptocurrency, specifically Bitcoin, is credible and has the potential to become a valid currency in the future. Cryptocurrency values are currently determined by demand and supply, like commodity prices but the broker believes that cryptocurrency’s value is growing because of its investment status. However, the broker opines that this will not last long and cryptocurrency’s utility as currencies will eventually dominate their valuation.
It will be interesting to see how the market develops with increasing public interest and involvement with cryptocurrencies like Bitcoin. The use of cryptocurrencies like Bitcoin is growing rapidly- this means that there is a great opportunity for investors who are willing to diversify their portfolios with these digital assets.
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