The cryptocurrency market had its golden year, surpassing $ 3 trillion in November when popular cryptocurrencies like Bitcoin and Ethereum soared before giving up some of those gains in 2021.
Bitcoin’s price rose to $ 68,521 in early November but fell sharply and is now trading below the $ 50,000 mark. Despite the ongoing volatility, experts expect the value of Bitcoin to reach over $ 100,000 by next year.
The same goes for Ethereum, which fluctuates from a high of $ 4,865 to $ 3,800.
And experts say that while the unknown is scary, we are at the dawn of the financial services technology revolution and therefore everyone should invest at least part of their portfolio in crypto.
“The average investor should have a little exposure,” Mark Yusko, founder of Morgan Creek Capital Management, told FOX Business. “Start small, 1 to 3%, and then increase overtime in the same way as you would with any asset accumulating in your portfolio.”
In the midst of the next technological revolution, and as the younger generation of digital natives are more likely to adopt digital assets, the role of crypto in the financial system will remain, according to Yusko.
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While concerns over possible regulation, China’s crackdown on cryptocurrency mining, and questions about Bitcoin’s ecological footprint fueled speculation and doubt, these temporary slumps were offset by other positive developments. Bitcoin hit new highs following tweets from billionaire Tesla founder Elon Musk, El Salvador’s introduction of the cryptocurrency, and the rising influx of retailers.
The introduction of cryptocurrencies into the mainstream brought big profits as many institutions and large corporations began to take crypto seriously, in addition to the launch of the first U.S. exchange-traded fund to track Bitcoin futures.
|BITO||PROSHARES TRUST BITCOIN STRATEGY ETF||29.16||+0.21||+ 0.73%|
|GCC||WISDOMTREE TRUST IMPROVED RAW MATERIALS STRATEGY||December 21||+0.27||+1.29%|
|BITQ||EXCHANGE TRADED CONCEPTS TRUST BITWISE CRYPTO INNOVATORS E.||20.78||-0.49||-2.30%|
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Companies and well-known brands like PayPal, Whole Foods, Microsoft, Home Depot, AMC, and Visa have started accepting crypto purchases on their networks.
|PYPL||PAYPAL HOLDINGS INC.||189.74||-5.20||-2.67%|
|HD||THE HOME DEPOT INC.||412.27||+3.71||+ 0.91%|
|AMC||AMC ENTERTAINMENT HOLDINGS INC||25.18||-1.35||-5.11%|
Meanwhile, the oldest bank in the United States, the Bank of New York Mellon, announced it would fund Bitcoin and other digital currencies. Celebrity investors like Musk, Jack Dorsey, Mike Tyson and Kanye West, as well as support from stars like Tom Brady and Gisele Bundchen, also helped drive the crypto craze to new heights.
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“Ultimately, good technology will prevail,” said Yusko. “The long-term, incredibly smart. It’s an amazing fundamental technology that will move all financial services into the digital age, and it’s the greatest wealth accumulation I’ve ever seen in my life.”
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