Why It’s Practical to Buy and Hold Cryptocurrencies Today
Thursday,22/02/2024|09:12GMTby
FM
The market has expanded from individual traders and brokers to business establishments.
For a long time, the cryptocurrency market has been surrounded by questions about its volatility and security. But ever since the pandemic, it has drawn more attention from investors of varying risk appetites and tolerance.
Cryptocurrencies are now a popular trend even if they have not fulfilled their promise of a decentralized financial system. There are over 400 million cryptocurrency owners worldwide, led by India, the US, and Vietnam, with 93M, 48M, and 20M, respectively.
Given this, cryptocurrency trading has become part of our daily lives. The market has expanded from individual traders and brokers to business establishments and government agencies. It has become more attractive recently as the market continues to heat up.
In this article, we will discuss why it’s wise to hold cryptocurrencies now.
Cryptocurrencies Have Enticing Upside Potential
In 2021, the price of any type of cryptocurrency rose substantially and set a new all-time high. Bitcoin (BTC), for instance, broke $60,000 during the first quarter. By November, it reached $69,004, the highest value since its inception.
But in only a few months, the celebration turned into panic among investors as crypto prices took a nosedive. It coincided with the skyrocketing global inflation during the first half of 2022. For instance, the US inflation exceeded 8% for the first time in many years before climbing to its 9.1% peak. In response, crypto prices had a steep plunge.
In the following months, prices started to move sideways, mainly due to the contrasting impact of lower inflation and higher interest rates in the US. As such, crypto prices became deeply tied to macroeconomic indicators. This supposition was fortified in 2023 when crypto prices accelerated as inflation decreased and the Fed maintained rate hike pauses.
In 3Q23, the market indicated slowdowns when inflation rebounded, and the Fed expressed its hawkish view. But today, prices have bounced back, showing that the market is heating up.
Given all these, cryptocurrencies are not wise choices for inflation hedges. Yet, their inverse correlation with macroeconomic indicators shows their potential for a sustained price rally this FY. The improving macroeconomic environment will even drive the bullish market. This can be supported by the anticipated Fed rate cuts this year.
Buying cryptocurrencies today is ideal, so investors must take advantage of price dips and pullbacks to buy them at a discount. There may be a double-digit upside potential if inflation keeps decreasing. As such, cryptocurrencies are still cheap today.
To support our views, here are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) charts with a Simple Moving Average (SMA) Line. You can compare their respective trends to inflation.
Image Source: MarketWatch
Image Source: MarketWatch
Image Source: MarketWatch
Image Source: MarketWatch
Cryptocurrencies as Accepted Payment Methods in Many Business Establishments
It is no longer a secret that many business owners have already entered the world of cryptocurrency trading. It has become more apparent in recent years as many online businesses have emerged, especially during the COVID-19 pandemic.
Many businesses are now operational even without brick-and-mortar stores. These are the primary drivers of the e-commerce boom and fintech revolution. And as cashless payment methods take flight, the crypto market is seeing more opportunities to penetrate new niches.
In the US, 41% of Americans no longer use cash for transactions. It substantially increased from 24% in 2015 to 29% in 2018. This contrasts the percentage of Americans with cash transactions, contracting from 24% in 2015 to 18% in 2018 and 14% in 2022.
Credit cards and mobile wallets are the top payment methods today. And since many banks are now into crypto trading, credit cards have started working hand-in-hand with cryptocurrencies. Even mobile wallets like PayPal (PYPL) are used to top up crypto wallets. Given all these, cryptocurrencies will become more common even in small and medium businesses (SMBs).
Moreover, cryptocurrencies have become part of our daily lives. For instance, Amazon (AMZN) and Shopify accept crypto payments to check out orders.
More interestingly, cryptocurrencies are already accepted in many restaurants. Starbucks (SBUX), Burger King (QSR), and KFC (YUM) are just some of the notable brands accepting these payments. SBUX is a famous coffee shop, while the other two are known quick-service restaurants (QSRs). So whether casual dining, fine dining, or quick service, whatever best POS system for restaurants implemented, cryptocurrencies are already accepted.
Government Agencies Are Also Accepting Crypto Payments
Despite being unregulated, government agencies have become more open to crypto as a product of the fintech revolution. Of course, many developed economies, such as the US, are still wary of cryptocurrencies, particularly Bitcoin. Its decentralized nature remains the primary reason behind this.
Policymakers are apprehensive about its capacity to circumvent government-imposed capital controls. While it promises freer financial transactions, governments see risks of unmanageable capital flows across nations. According to Chainalysis, more than $50B of Bitcoin moved from East Asia to other countries in 2020.
On a lighter note, some nations view cryptocurrencies as an opportunity to drive more capital inflows to boost economic activities. These will be pivotal to their rebound as their respective capital markets draw an influx of investors.
In Singapore, government agencies accept Ethereum contracts as payment for their services. This is one of their ways to veer away from siloed centralized payment systems. We can attribute it to Ethereum leading the blockchain technology, making it more secure today.
Note that Singapore is one of the most robust economies in the world. Hence, it will not be surprising if its neighboring countries emulate its economic recovery and development roadmap.
The cryptocurrency market is expanding and thriving today. Given its enticing growth prospects and rising popularity, trading and holding can be practical for individuals and entrepreneurs.
For a long time, the cryptocurrency market has been surrounded by questions about its volatility and security. But ever since the pandemic, it has drawn more attention from investors of varying risk appetites and tolerance.
Cryptocurrencies are now a popular trend even if they have not fulfilled their promise of a decentralized financial system. There are over 400 million cryptocurrency owners worldwide, led by India, the US, and Vietnam, with 93M, 48M, and 20M, respectively.
Given this, cryptocurrency trading has become part of our daily lives. The market has expanded from individual traders and brokers to business establishments and government agencies. It has become more attractive recently as the market continues to heat up.
In this article, we will discuss why it’s wise to hold cryptocurrencies now.
Cryptocurrencies Have Enticing Upside Potential
In 2021, the price of any type of cryptocurrency rose substantially and set a new all-time high. Bitcoin (BTC), for instance, broke $60,000 during the first quarter. By November, it reached $69,004, the highest value since its inception.
But in only a few months, the celebration turned into panic among investors as crypto prices took a nosedive. It coincided with the skyrocketing global inflation during the first half of 2022. For instance, the US inflation exceeded 8% for the first time in many years before climbing to its 9.1% peak. In response, crypto prices had a steep plunge.
In the following months, prices started to move sideways, mainly due to the contrasting impact of lower inflation and higher interest rates in the US. As such, crypto prices became deeply tied to macroeconomic indicators. This supposition was fortified in 2023 when crypto prices accelerated as inflation decreased and the Fed maintained rate hike pauses.
In 3Q23, the market indicated slowdowns when inflation rebounded, and the Fed expressed its hawkish view. But today, prices have bounced back, showing that the market is heating up.
Given all these, cryptocurrencies are not wise choices for inflation hedges. Yet, their inverse correlation with macroeconomic indicators shows their potential for a sustained price rally this FY. The improving macroeconomic environment will even drive the bullish market. This can be supported by the anticipated Fed rate cuts this year.
Buying cryptocurrencies today is ideal, so investors must take advantage of price dips and pullbacks to buy them at a discount. There may be a double-digit upside potential if inflation keeps decreasing. As such, cryptocurrencies are still cheap today.
To support our views, here are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) charts with a Simple Moving Average (SMA) Line. You can compare their respective trends to inflation.
Image Source: MarketWatch
Image Source: MarketWatch
Image Source: MarketWatch
Image Source: MarketWatch
Cryptocurrencies as Accepted Payment Methods in Many Business Establishments
It is no longer a secret that many business owners have already entered the world of cryptocurrency trading. It has become more apparent in recent years as many online businesses have emerged, especially during the COVID-19 pandemic.
Many businesses are now operational even without brick-and-mortar stores. These are the primary drivers of the e-commerce boom and fintech revolution. And as cashless payment methods take flight, the crypto market is seeing more opportunities to penetrate new niches.
In the US, 41% of Americans no longer use cash for transactions. It substantially increased from 24% in 2015 to 29% in 2018. This contrasts the percentage of Americans with cash transactions, contracting from 24% in 2015 to 18% in 2018 and 14% in 2022.
Credit cards and mobile wallets are the top payment methods today. And since many banks are now into crypto trading, credit cards have started working hand-in-hand with cryptocurrencies. Even mobile wallets like PayPal (PYPL) are used to top up crypto wallets. Given all these, cryptocurrencies will become more common even in small and medium businesses (SMBs).
Moreover, cryptocurrencies have become part of our daily lives. For instance, Amazon (AMZN) and Shopify accept crypto payments to check out orders.
More interestingly, cryptocurrencies are already accepted in many restaurants. Starbucks (SBUX), Burger King (QSR), and KFC (YUM) are just some of the notable brands accepting these payments. SBUX is a famous coffee shop, while the other two are known quick-service restaurants (QSRs). So whether casual dining, fine dining, or quick service, whatever best POS system for restaurants implemented, cryptocurrencies are already accepted.
Government Agencies Are Also Accepting Crypto Payments
Despite being unregulated, government agencies have become more open to crypto as a product of the fintech revolution. Of course, many developed economies, such as the US, are still wary of cryptocurrencies, particularly Bitcoin. Its decentralized nature remains the primary reason behind this.
Policymakers are apprehensive about its capacity to circumvent government-imposed capital controls. While it promises freer financial transactions, governments see risks of unmanageable capital flows across nations. According to Chainalysis, more than $50B of Bitcoin moved from East Asia to other countries in 2020.
On a lighter note, some nations view cryptocurrencies as an opportunity to drive more capital inflows to boost economic activities. These will be pivotal to their rebound as their respective capital markets draw an influx of investors.
In Singapore, government agencies accept Ethereum contracts as payment for their services. This is one of their ways to veer away from siloed centralized payment systems. We can attribute it to Ethereum leading the blockchain technology, making it more secure today.
Note that Singapore is one of the most robust economies in the world. Hence, it will not be surprising if its neighboring countries emulate its economic recovery and development roadmap.
The cryptocurrency market is expanding and thriving today. Given its enticing growth prospects and rising popularity, trading and holding can be practical for individuals and entrepreneurs.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
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Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
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Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
