With the recent crash where cryptocurrency lost a quarter of its value since mid-April, many industry stalwarts and key stakeholders were quick to suggest that this might be the end of bitcoin.
In fact, to some, it may seem almost blasphemous for anyone saying otherwise.
However, industry experts believe that bitcoin is far from over despite the somewhat negative outlook and is here to stay.
For example, did you know that one of Bitcoin’s most prominent corporate backers, MicroStrategy expects a $285 million loss after the recent crypto crash but wants to raise $400 million in debt to buy more?
To understand why corporations and other stakeholders still believe in bitcoin’s bright future, it is crucial to closely understand and observe market trends.
The price crash came amid a record-breaking run for bitcoin, rising from below $5,000 in March 2020 to an all-time high of $64,486 per unit on 14th April – jumping more than 450% in just six months.
However, It is important to note that we live in the era of a pandemic; every financial product- from the stock market to the commodities sector has been affected, and the cryptocurrency market is no exception.
Nonetheless, the recent crash should be seen as a temporary price correction, which is an inevitable aspect of every asset class, even during regular times.
Cryptocurrency has a bright future, especially in Asia
A closer look at emerging trends over the past couple of years will establish the value of cryptocurrencies in the new normal.
In the face of the pandemic amidst global economic meltdowns, cryptocurrencies have emerged as remarkably resilient assets. Furthermore, the rapid increase in digitization has created an even more ripe environment for digital currency.
This is particularly true for the APAC region, where more than 60 percent of the world population resides – a population with a rising middle class and increasing smartphone and internet usage driving digital trends.
According to a recently published study by Messari crypto researcher Mira Christanto, six out of the top ten cryptocurrency unicorns are located in Asia.
The report also indicates that around 98 percent of ethereum-based futures and 94 percent of bitcoin futures volumes stem from the region.
Furthermore, by the end of 2019, six of the world’s top ten largest crypto firms were located in Asia. And as of January this year, of the top 20 token projects with headquarters, 42 percent of the market capitalization is based in Asia.
All of which has contributed to Bitcoin’s meteoric rise in value in the past few years and increasing interest from institutional investors and major banks, including Goldman Sachs, which set up its bitcoin trading desk earlier this month.
Choosing the right platform for best interests and good returns is key
Market trends suggest that the recent crash was merely a glitch and that cryptocurrency is still a safe bet, especially for individual investors looking to grow their assets.
However, it is crucial to choose the right platform to grow assets through interests. When making that decision, it is essential to keep a few key factors in mind:
- What are the interest rates?
- Is there consistency, or are the rates too fickle?
- Will I have the flexibility to play around with my assets?
One such reliable platform is Singapore-based Hodlnaut that provides financial services for individual investors.
They earn interest on their cryptocurrencies by lending to corporate borrowers, who would otherwise struggle to access crypto loans.
An emerging cryptocurrency lending platform, Hodlnaut now offers an increased rate of 10.0% APR (10.5% APY) for stablecoins.
Another point of note is that their cryptocurrency and stablecoin rates have remained consistent irrespective of market conditions.
To give users maximum flexibility, Hodlnaut launched a new Token Swap feature that allows users to seamlessly swap tokens and earn interest from their choice of available assets, including BTC, ETH, DAI, USDC, and USDT.
In a post-pandemic world, digital assets will be the next big, if not the biggest, thing. Learn more about Hodlnaut here and secure your future.