Despite the ebb and flow of all other altcoins on the market, bitcoin and ethereum have retained the top spot. But is this legacy of domination built to last?
Bitcoin and Ethereum have been holding on strong all summer. Despite the insane volatility of legacy markets, the uncertainty that is knocking heartily at all of our doors- these two digital currencies have shown integrity and stability that has yet to be seen in nearly any other market. With the impressive technological development of Ethereum’s decentralized and open source platform, coupled with the continually solid investment potential of bitcoin, these markets are flourishing- often well above and beyond the rest.
But what is it exactly that keeps these two secured for the top spots in crypto? Is it the new investors, coming in from all over the world? The novice friendly exchange platforms like Bitvavo, that give these new bitcoin enthusiasts a leg up? The institutional interest? The burgeoning FinTech? In fact, it’s all of these things, and so many more.
Institutional investors are finding firm footing in crypto. Whether they continue to surge towards these digital investment opportunities because more traditional trading structures (like options, hedge funds, and bitcoin lending) are drawing them, or because they see the market expanding in the future, is still up in the air. But what is easy to see is a renewed bullish sentiment when it comes to bitcoin and other cryptos amongst seasoned investors.
A diversified portfolio has long been the best friend of any well-informed investor, and crypto presents some optimum risk mitigation opportunity. Particularly as markets are suspected to begin decoupling from legacy investments again, and more closely aligning themselves with assets like gold. Thanks to institutional interest in the market, there are now more vehicles for investment than ever, many of which institutional investors are intimately familiar with. However, there is still free space within the cryptosphere to continue developing these markets further. Introducing insurance firms, custodial services, and improving compliance and clarifying regulation. Which would serve to continue to build the crypto markets up to mirror legacy markets. All without the middle men. Which is something that has both institutional investors and new investors interested in the long haul.
The fundamentals of both bitcoin and ethereum remain largely untrained from original versions of protocol. While many forks have been deftly laid in the rod, both hard and soft, the fundamentals behind each major crypto have not changed much. Many would argue that the ways in which they have changed are for the better. With Ethereum continuing to branch off, exploring the DeFi and DApp environments with a gusto, helping to provide necessary infrastructure for all crypto users. While there have been core changes to protocol, particularly at Ethereum, with Ethereum 2.0 on its way, housing what some believe to be a more sustainable validation proof-of-stake, as well as impressive security updates.
Bitcoin has also seen its share of protocol changes, some resulting in incredibly useful forks like Bitcoin Cash- but ultimately, the two major cryptos have stayed true to their roots. While certain exchanges and wallet providers have begun to institute KYC (know your customer) protocols in order to stay compliant with growing regulation, some crypto purists see this as a violation of fundamental principles. However, one of the key concepts and foundational ideals of bitcoin was to provide a global currency that is accessible for everyone- which could never be achieved without compliance with governmental standards.
On top of capturing the minds of institutional investors, alongside retaining long term and original investors, ethereum and bitcoin are also looking to captivate the common man, by introducing financial infrastructure that is more familiar to us all. Which appears to be working well, as neither the price of bitcoin, nor the price of ethereum have been affected by recent market scandals. With the KuCoin security breach and BitMEX fraud indictment, crypto has been jumping into headlines in some less than encouraging ways recently. However, investors seem undeterred.
Which is exceptionally promising, perhaps showing a more sincere adoption in the cryptocurrency markets than we have ever seen before. Where wild price swings were always close to follow unrest, as there was increased pressure to sell. But the market is maturing. It’s growing, and creating something more steadfast than many of us believed possible in the days of the niche Internet forum and largely unheard-of digital currency. Which could mean to tell us that we were right. bitcoin and ethereum, the entirety of the crypto sector for that manner, is the future of finance and if you build it, they will come.