The cryptocurrency market has enjoyed massive gains in 2017. Bitcoin is the most well-known currency in this field. However, there are other currency options as well. China recently made a huge announcement that it would no longer allow new cryptocurrency offerings in the country. This was a major decision that sent the market down.
Looking at the numbers, many investors are worried that Bitcoin is at a peak. With other options popping up every day, which currency should investors choose? This is the question that many investors are trying to answer for themselves.
Smart Money Moves
There are many financial managers who have spoken out against this market. For example, Jamie Dimon, who is the CEO of JP Morgan, recently said that the entire cryptocurrency market is overvalued. This is another factor that sent markets down over the past few weeks.
Investors are trying to figure out the right place to invest. With so many people just now investing in cryptocurrencies, a lot of people think that the smart money is out of the market completely.
Many people believe that cryptocurrency markets are only going to grow in the future. As new technology becomes available, this will only expand the usage of these currencies. However, investors cannot help but look at the massive gains that Bitcoin has had in just the past year. Many investors strongly believe that the currency is a bubble that is going to burst soon.
Other Asset Classes
There are other asset class to invest in if you do not want to take on the risk of owning Bitcoin. Gold typically moves in the same way that cryptocurrencies move, except gold is much less volatile. Some people enjoy trading Bitcoin every day to take advantage of wild swings in the market. This is a market that lacks compliance, and some investors see this as a major problem.
In the years ahead, cryptocurrency options will continue to play a major role in the economy. However, investors need to be careful to avoid losing money in this market.