The two largest cryptocurrencies have fallen in value - Bitcoin (BTC-USD) And Ethereum (ETH-USD)Earlier this week, amid a total ban on cryptocurrency trading in China, and indications of upcoming regulations by The US Securities and Exchange Commission SEC.
In general, prices tend ETH to move parallel to Bitcoin BTC.
Michael Sonnenshein CEO Grayscale Investments Grayscale Investments, which is widely recognized as the largest asset manager for cryptocurrency in the world, the two market-dominant currencies are used for completely different purposes, which investors should take into account.
Sonnenshein This investment advice applies to a wide range of offered currencies, calling on investors to understand the use cases of each cryptocurrency, in order to assess its viability as an investment.
has stated Sonnenshein during the summit All Markets Summit Plus: Crypto Investing in a Yahoo Finance Yahoo Finance :
“The things like Bitcoin BTC They are inherently built to be a digital form of money, or a store of value.
While things like Ethereum They are meant to be more than just fuel for running decentralized applications, and the list goes on.”
Duration:
“There is a challenge for investors, and there are now hundreds, if not thousands of digital currencies out there in the crypto space.
I think many investors should first understand the underlying technology, as well as the use cases around different cryptocurrencies, to determine what might make sense for them.”
While critics question Bitcoin BTC In its effectiveness as a form of money, many supporters say, it can be used in transactions, pointing to companies Overstock.com (OSTK) And Starbucks (SBUX), which offers customers ways to pay in currency Bitcoin BTC.
And she was Cathy Wood CEO and CIO of Ark Invest Earlier in June, she confirmed that:
“Currently high-value transactions are done in currency Bitcoin This is a very useful role.”
while including ETH On the second largest cryptocurrency and blockchain, supports most Non-fungible tokens NFTs It amounts to a premium digital asset, which can be traded but not replicated.
as drawn NFTs Attention In March, when the artist sold a digital work Beeple at auction for the amount of 69 Million dollars.
Regardless of the difference between currencies, some investors will miss the opportunity of cryptocurrency entirely, as acknowledged Sonnenshein from Greyscale Grayscale.
where he says:
“In fact, the cryptocurrency ecosystem will not necessarily be suitable for every investor.
Our tendency is that those who want to devote themselves to cryptocurrency are the ones who take on higher risks and want a longer time horizon for their investments.”
On the other hand, the risks in the crypto space are partly due to the uncertain regulatory environment.
Last month, US Treasury Secretary Janet Yellen urged the rapid adoption of rules stable coins stablecoins It is a form of cryptocurrency whose value is tied to a commodity or currency, such as the US dollar.
As described by the chief Securities and Exchange Commission، Gary Gensler The cryptocurrency market in a statement published last month, "Wild West" Since then, he has indicated a desire to organize it.
The Wild West is an expression of American culture that refers to the American Old West, and the term is associated with Western literature and classic films depicting life in the American desert desert.
However, crypto proponents say the market will remain the same, even if the US imposes new regulations.
has confirmed Kristin Smith Kristin Smith Executive Director of the Blockchain Association Blockchain That, in an interview with the site Yahoo Finance Yahoo Finance Last Monday, she said that the organization “Not an existential threat to cryptocurrencies”.
He Sonnenshein:
“With the development of the cryptocurrency market, investors have diversified their investment portfolios beyond Bitcoin And Ethereum.
We have seen a trend among investors that if they invest, they do so with a diversified outlook, investing beyond the assets of Bitcoin And Ethereum, Where a large part of the market value is concentrated today.”
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