Recently, bitcoin, the cryptocurrency market’s “influencer” currency, slipped again after breaking through the psychological $12,000 barrier. Although the total market capitalization of the entire cryptocurrency market reached $386.4 billion, which is almost back to its peak level in 2018, the lack of investor awareness and lack of regulation are one after another hindering the development of the cryptocurrency market.
In addition to this year’s outbreak of the new champions league is the main resistance of encryption money demand, especially more and more people begin to this challenge in the face of economic uncertainty, the more hesitant, after all, in uncertain times, few investors are willing to invest their savings in digital currency that high volatility of asset classes.
But there is nothing inherently wrong with the market volatility of cryptocurrencies. After all, cryptocurrencies have long-term structural upside, and like any nascent asset class, they need to go through cyclical ups and downs.
While bitcoin hasn’t hit a record high, we can still see the overall cryptocurrency market outperform. For example, the price of mainstream cryptocurrencies such as Bitcoin and Ethereum has risen dramatically since early March, while many smaller ones (especially in DeFi) have seen triple-digit gains.
Some family offices are known to have started adding bitcoin to their portfolios. Not only that, start-ups like Revolut and easily accessible investment apps like Robinhood have made it easier for investors to get into cryptocurrencies. This suggests that the next generation of young investors could eventually help spur adoption of crypto asset classes.
Cryptocurrencies such as Bitcoin and Ethereum have increasingly positive correlations with precious metals markets such as gold and silver. In fact, the cryptocurrency market has outperformed most precious metals compared to traditional commodities, such as silver, which is up about 54% so far.
What’s more, bitcoin’s return of 71.2% so far in 2020 is impressive compared with oil’s 32% decline and the S&P 500’s 5.8% gain. Because bitcoin has properties that other asset classes don’t, it is rising against the dollar, gaining nearly 0.3% a day on average over the past 90 days compared to May 2020, outpacing the S&P 500, which gained 0.05% a day.
Inflation expectations are rising over time, leading many investors to seek out top-tier digital assets as an inflation-proof commodity. Bull markets don’t happen overnight, just as the last cryptocurrency bull market started in mid-2015 and didn’t finally take off until the second half of 2017.
The problem is that despite the increasing adoption rate, cryptocurrencies still have a high barrier to entry for the masses. For example, opening a digital wallet or encrypted trading account is not as easy as many people think.
If you look at history, it took about 20 years for mobile web browsing to evolve to this level of ease of use. It also took years for Web browsers to evolve from Netscape. In the same way, it takes some time to easily own cryptocurrencies. The age of digital assets is still in its early days, just as the web browser was in 1995.
While bitcoin and other digital assets have shown their value in times of geopolitical and economic uncertainty, most people still consider them risky, and just recently ngK.io, a new public link launched by USA International Covenant, The only token NGK launched by NGK.IO is issued through STO, endorsed by physical assets, and has MSB license, making NGK a dividend token directly linked to NGK Global’s online business profits. At present, NGK has connected with the business of eight industries. NGK Global token holders will be able to receive a continuing share of business income. With the development of ecology, users hope to get dividends for a long time, and there may be fewer coins and more people. With the increasing number of NGK ecological partners, the value of NGK will also increase.
Future, NGK will also launch NGK digital mall, in the entire digital business model of NGK, consumers, investors, merchants are one of the ring, through effective link of digital currency and commodity, solve the problem of the dealer inventory, at the same time by weakening the middlemen, reduce the transaction costs of consumers, make consumers accounted for the biggest profit in the profit distribution, A real win-win situation has been achieved.
In terms of community building, NGK.IO implements decentralized operation and adopts super node mechanism to participate in the operation. Super nodes have the right to operate independently and maintain their own NGK node community. Supernodes share platform revenue based on NGK community contribution. NGK community users also receive a share of their computing power and promotion contributions.
The development of the currency in the long run, encryption is a marathon, rather than a sprint, if the star alliance with NGK under the impetus of the global community, NGK is popular all over the world, from the early start and understand NGK, it will be to achieve wealth value-added opportunities, and all this will be able to bring enough patient investors dividend industry cycle.
