Although the cryptocurrency market is relatively new, it has experienced significant volatility due to huge amounts of short-term speculative interest. For example, between October 2017 and October 2018, the price of bitcoin rose as high as $19,378 and fell to lows of $5851. Other cryptocurrencies have been comparatively more stable, but new technologies are often likely to attract speculative interest.
The volatility of cryptocurrencies is part of what makes this market so exciting. Rapid intraday price movements can provide a range of opportunities to traders to go long and short. In early 2021, cryptocurrency such as bitcoin has rising up to $58,000, the highest a currency has ever rising.
https://cdn.wccftech.com/wp-content/uploads/2017/10/cryptojacking-2.jpg The cryptocurrency market is usually available to trade 24 hours a day, seven days a week because there is no centralised governance of the market. Cryptocurrency transactions take place directly between individuals, on cryptocurrency exchanges all over the world. However, there may be periods of downtime when the market is adjusting to infrastructural updates, or ‘forks’.
Liquidity is the measure of how quickly and easily a cryptocurrency can be converted into cash, without impacting the market price. Liquidity is important because it brings about better pricing, faster transaction times and increased accuracy for technical analysis.
In general, the cryptocurrency market is considered illiquid because the transactions are dispersed across multiple exchanges, which means that comparatively small trades can have huge impact on market prices. This is part of the reason cryptocurrency markets are so volatile.
Throughout the centuries, people have continued to hold gold for various reasons. Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times.
Because of its unique qualities, gold has been the one material that is universally accepted in exchange for goods and services. In the form of coins or bullion, gold has occasionally played a major role as a high-denomination currency, although silver was generally the standard medium of payments in the world’s trading systems. Gold began to serve as backing for paper-currency systems when they became widespread in the 19th century, and from the 1870s until World War 1 the gold standard was the basis for the world’s currencies. Although gold’s official role in the international monetary system had come to an end by the 1970s, the metal remains a highly regarded reserve asset, and approximately 45 percent of all the world’s gold is held by governments and central banks for this purpose. Gold is still accepted by all nations as a medium of International payments.
Throughout human history, gold has been used as a money-form in one way or another. From gold coins to paper notes backed by the gold standard, only recently has money moved to a fiat system that is not backed by a physical commodity. Since then, inflation and a declining dollar have meant rising gold prices. By purchasing gold, people can also shelter themselves from times of global economic uncertainty. Gold levels may also influence national economies engaged in global trade and international finance.