Breaking: Bitcoin, Ethereum Face 'Significant Challenges'

tl;drAccording to analysts at the Investment Bank, Bitcoin is still five times more volatile than gold, and Ethereum will continue to face competition from rival blockchains.
Breaking: Bitcoin, Ethereum Face 'Significant Challenges'
Breaking: Bitcoin, Ethereum Face 'Significant Challenges'
How do you rate this post?
Good
Average

Bitcoin Volatility

Bitcoin volatility is five times that of gold, and it is now trading at $38,449, down 44% from its all-time high of $69,044. Many cryptocurrency investors believe Bitcoin is a type of "digital gold," acting as a hedge against inflation like precious metals.

How Does Volatility Affect Bitcoin and Ethereum?

ْThe analysts of JPMorgan Chase & Co. (NYSE: JPM) - a global financial services leader - mentioned that Bitcoin would struggle to gain institutional acceptance because of its volatility, whilst Ethereum will face more competition from competing blockchains. In Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs), Ethereum competitors such as Solana, Terra, Binance Smart Chain, and others are gaining traction.

"What has been noticeable during this month's correction is that Ethereum has not managed to reclaim market cap share vs its main competitors as its price declined by a similar magnitude to smaller altcoins," analysts stated.

Solana: the Main Competitor of Ethereum

The network of Solana is popular because it is less expensive and faster than Ethereum's. And it's becoming more popular among NFT collectors to be utilised for trading NFTs. Solana, on the other hand, has its own set of issues, including frequent network congestion and slowdowns. The network was down for 17 hours in September 2021. However, the price of SOL (Solana's native cryptocurrency) has remained stable at just under $100. It’s worth noting that it is the seventh-largest cryptocurrency by market capitalisation.

Final Remarks

Staying up to date on the latest crypto news is essential to making wise investment decisions. Knowing what’s happening in the crypto world is highly important because it influences a decent percentage of the decisions we make on a daily basis in the market. Keep an eye on Cryptologi.st for the most up-to-date news and assessments of the top 1500 currencies and many other reports of the crypto world. We’ll keep you posted!

How do you rate this post?
Good
Average

Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation, or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation, and legal advice.

© 2022 - Created by Cryptologi.st