To derive innovation across numerous industries to leverage
blockchain technologies Bitcoin as well as Ethereum are two highly disruptive
cryptocurrencies. For a $1000000 to develop the ideal investment strategy the
objective was to analyze each Cryptocurrency without any additional trading that
should be held for five years. Between each currency looking at the
similarities as well as different historical performance is analyzed of each
along with extrapolated values to form a projection of five years. For the
demand of both currencies conversations with industry professionals helped to
recognize the impactful factors of both currencies. There are many other coins
in the market that give more profit (D’Alfonso, Langer, & Vandelis, 2016).
The market for
Cryptocurrency is continuously changing. Thus we have to open ears and eyes.
All over the world the crypto community is constantly making waves as well as
gathering enthusiasts. The value of coins is still unstable; the virtual money
is only rising in popularity. The short term prediction is difficult than the
long term prediction. We have to consider the temporary risks in short term
prediction that is more challenging to predict the future of Cryptocurrency for
example events related to geopolitical, advancement in technological, as well
as failures. In the prediction of five years, this is not important. The
objective of this article is to predict the next five-year prediction of the price
of Bitcoin and Ether. As a digital currency Bitcoin has utility strictly. State
of the global economy Bitcoin can be expected to have an inverse relationship (COVESTING, 2018).
In financial infrastructure lacking of places or as an alternative measure for
transacting highly inflated currencies are most likely to identify Bitcoin. Due to this same factor ether should also bear
an inverse relationship to the global economy, due to the wide array of uses
the magnitude of this relationship should be lessened, nature of the Ethereum
network is more innovative. In the same manner as commodities where Bitcoin
values are likely to act, to widespread adoption of the network as well as
smart contract ether value should relate more closely (Tsaklanos, 2019).
We
observe that Bitcoin have a better performance than the ether. To maximize our
return over the next five years, we should invest 69% into BTC as well as 31%
into the ETH. With the help of fear of missed opportunity (FOMO) as well as
fear, uncertainty and doubt FUD market majors control the market. For the jumps
and fall in the price rate, the activity of financial giants acts as a
catalyst. Someone says that “when others are greedy to be fearful, and when
others are fearful be greedy.” When the
market is highly overbought or else oversold, it is really important to act
independently as well as not follow the crowd always.
References of
Cryptocurrency
COVESTING. (2018, Feb 10). Factors affecting the
cryptocurrency market. Retrieved from
https://medium.com/covesting/factors-affecting-the-cryptocurrency-market-bd791b3c72dd
D’Alfonso, A., Langer, P., & Vandelis, Z. (2016). The
Future of Cryptocurrency. Ryerson University.
Tsaklanos, T. (2019, June). 5 Must-Read
Cryptocurrency Predictions For 2019. Retrieved from https://investinghaven.com/crypto-blockchain/5-must-read-cryptocurrency-predictions-2019/