Cryptocurrency, now referred to as a type of digital gold is a very useful asset to people nowadays. With such great value in the market, people are trying to get more of these as soon as possible. It is said that when a market keeps on growing at a decent speed for quite a while, the damage, when the market crashes is huge. Although the last market crash happened in the year 2007, there are chances of it happening again anytime soon.
Since crypto is a very recent happening in the market, there haven’t been any major losses to the market because of which no one knows what will happen if the market suffers a great loss. Cryptocurrency has a much greater value and importance in the United States than any in other countries around the world. This is why, even if the market crashes down, cryptocurrency will still have a very important place in the United States currency market.
However, as far the general consequences are concerned, there are different opinions on the issue on a large scale.
- Bitcoin currency is directly or inverselyproportional to the stockmarket:
Many stockholders and critics do not find any correlation between the two, or any pieces of evidence of them being directly or inversely proportional to each other. However, many views may seem to contradict. Many stockholders find a psychological connection between the two. Some incidents prove that people tend to invest more money and that too very often when they are not scared and have confidence over the market and the ongoing. On the contrary, when people are scared or expect a major turn in the market, they tend to invest less or even pull away from their money from the market.
- Bitcoin is a high-risk or a low-risk alternative:
When Bitcoin investors get second thoughts about the money or are not sure about the market status, they tend to pull their money away. It usually happens when the people take Bitcoin as a high-risk investing alternative. One of the reasons behind this could be the major risks that are behind this.
People who consider this as a low-risk alternative take tend to invest more because since the market has not seen any major loss after cryptocurrency, the people have more trust in it than other option present in the market.
Cryptalker has several views on many such issues which are open to the general public. Check them out to build more knowledge about the same.