Cryptocurrency is Creating Millionaires in Q4 2021. Will it Last?
Over the past few weeks, cryptocurrency prices have been reaching record highs as more and more investors infused money into it. Investing in digital tokens at the right time is all it takes for you to become the so-called ‘cryptocurrency millionaire.’ However, it is not easy as it sounds. Bitcoin investments could be tempting, but keep in mind that it is extremely volatile and could pull your leg at any time. Fortunately, many bitcoin, ethereum, Shiba Inu, and Solana investors have been cashing out from their investors in the Q4 of 2021, thanks to their record price rallies. But still, the question remains intact. Will these cryptocurrency millionaires be able to maintain their profile for a long time?
Cryptocurrencies came to existence in 2009 when bitcoin made its debut as the first decentralized and blockchain-based investment model. Following bitcoin’s success, many other digital tokens like altcoins, meme coins, and stable coins occupied the space. Today, there are over 10,000 cryptocurrencies in usage. However, not all of them have the potential to make cryptocurrency millionaires. A few cryptos like Shiba Inu impress investors out of the blue at an unexpected time, which eventually leads them to get their hands on big profit. In the past year alone, bitcoin has surged 380%, ethereum has sorted by 1,500%, and dogecoin is up by 19,000%. With these tempting numbers in front of our eyes, it is natural to think that every cryptocurrency investment is leading to benefits. But remember that this scenario changes according to the market trend. According to a CNBC Millionaire survey, nearly half of millennial millionaires have at least 25% of their wealth in cryptocurrencies. This shows the influence of cryptocurrency among young investors. Remarkably, Q4 2021 was profitable for many investors who had either bitcoin, ethereum, Shiba Inu, or Solana in their wallet.
Bitcoin is the foremost digital asset and payment system that worked as the foundation stone of the cryptocurrency market we see today. It is considered the most successful digital token that has come into existence so far. Although the cryptocurrency experienced gradual growth since its inception, bitcoin was put under the limelight in 2017 when it made a record rally. Further, in 2020, bitcoin gained the traction it deserved with many people trying their hand on the investment model. While people thought 2020 was the most profitable year for bitcoin investors, 2021 began to impress them more with new record highs. However, everything was not going in a linear path. Bitcoin faced major setbacks when it was blamed for ruing the environment. The high level of energy consumption during bitcoin mining has put the currency at a disadvantage with Elon Musk shutting Tesla’s door for bitcoin payments. Things got even worse when China imposed a blanket ban on cryptocurrency trading. These moves made bitcoin touch as low as US$35,000 in June and July this year.
But thanks to Bitcoin ETF’s debut in the New York Stock Exchange, the digital token was finally back on track after four months. Later bitcoin made another all-time high by touching US$68,000 this week when Wall Street banks including Goldman Sachs and Well Fargo has announced their interest in hiring cryptocurrency professionals. The recent price surge in Q4 of 2021 has helped many native investors cash out good money from bitcoin.
Ethereum, the first successful altcoin that emerged out of bitcoin, has experienced a massive surge in the fourth quarter of 2021. The digital token was traded at a record US$4,600 in the first week of November. However, Ethereum’s rally was a big surprise to many crypto investors. The cryptocurrency is known for following bitcoin’s footprint throughout its journey since inception. Whenever bitcoin reached record price, ether would also follow the trend, and the same repeats for downfall as well. But this time, the digital token acted alone even when bitcoin was not on a price rally.
Experts say that the ethereum price rally could be because of the upcoming changes in the ecosystem. Ethereum 2.0 is anticipated to fast-track the transaction process, while also reducing the fees. Meanwhile, it will create inflammation of the digital token as every time an ether is mined, many existing ones will be burned off. Besides, ethereum’s announcement about Metaverse and NFT debut has also contributed to its value surge.
Shiba Inu token is the star of Q4 2021. Yes, with big steps, SHIB managed to take off the godfather meme coin- dogecoin’s token for a while. The ethereum-based meme coin experienced an 800% surge last month after a petition by enthusiasts to enroll it on Robinhood Platform gained traction. The petition got 300,000 signatures from investors and eventually drove the cryptocurrency’s price crazy. However, what surprised the investors more was Shiba Inu taking over Dogecoin and occupying the ninth position. People who invested a small sum of money got to cash out a huge price rally.
Can Investors Solely Rely on the Price Rallies?
Although the numbers are alluring, investors should always be cautious while trying their hands on cryptocurrency. Digital tokens are a futuristic investment model that has the potential to revolutionize the whole financial ecosystem. But one thing to keep in mind while investing in their volatility and instability. Even when cryptocurrency is highly profitable, they can pull you off the seat anytime. Therefore, keep a low profile and invest only 5% of your total savings in the decentralized medium.
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