The cryptocurrency market is down 80% this year. Last year, an upbeat momentum in cryptos drove the market to all-time highs. It later came crashing down and burnt significant investor wealth, a freefall that was similar to the dotcom crash witnessed in the early 2000’s.
Bitcoin is trading at $6.5k, which is 70% lower than its all-time high price. Ethereum has lost 40% of its value in Sept. alone and is trading at $203. While most investors will never invest in crypto again driven by this crash, the enthusiasts are excited.
The massive erosion in the crypto market cap has provided another entry point for investors. The hardcore supporters remain unconcerned about this crash and believe that bitcoin and alt-coins will be as revolutionary as top internet companies.
Bitcoin, however, has survived similar declines in the past. Its price fell from $1163 in Nov. 2013 to $152.4 in Jan. 2015. So what will drive the next crypto bull run?
Scalability and application
In the past, the average cryptocurrency bull run has resulted in a 17x rise for investors. The Chief Investment Officer of Pantera Capital, Joey Krug expects the trading volume in the next bull run to reach $2T.
This will mean a 1000% rise in the global crypto market. This price surge will need to be supported by easily scalable crypto networks and an increase in adoption of the crypto tech. Bitcoin’s Lightning Network provides a faster and cheaper option for transfer of funds.
Ethereum, Tron, and Ripple are also looking to develop better systems to improve the speed of processing transactions.
The SEC (Securities and Exchange Commission) has set up a committee to evaluate the introduction of a cryptocurrency ETF (exchange-traded funds). However, while crypto is expected to rise higher once trading starts on a recognized platform, the Bakkt might drive the markets starting Dec. 2018.
Bakkt is an NYSE-backed crypto platform. Intercontinental Exchange which is the parent company of the NYSE will list the Bakkt Bitcoin Daily Futures Contract on Dec. 12, 2018. Microsoft [MSFT] and Starbucks [SBUX] have also partnered with ICE to launch Bakkt.
Microsoft’s cloud solutions will enable customers to buy, sell and store cryptos on a global network. Starbucks aims to make crypto transactions more usable and wants to expand payment options.
This will drive the scalability and usability of cryptocurrencies to a large extent. Now that the big guys are coming in, the crypto markets should start its rise shortly. Experts believe bitcoin’s price to reach anywhere between $50k and $150k by the end of the next bull run.
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3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.