The biggest interest is in trading bitcoins. After falling by almost 50 percent against this year’s historic high, the price stopped at a level between 33,000 and 34,000 USD, ie about 740,000 CZK, and investors are waiting for some impulse. In a year-on-year comparison, however, the price of bitcoin is higher by 270 percent.
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“Of course, the significant drop in the price of bitcoin was also reflected in the volume of trades. Now the market is waiting for some news to support demand. Because we expected a similar scenario, we added digitized physical gold to the trading and will start offering ethereum in the autumn, ”said Martin Stránský, Bit.plus director.
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Bitcoin came under selling pressure in May, when the carmaker Tesla turned away from it. She announced that she was no longer accepting it as currency when buying her cars. At the beginning of the year, Tesla’s intention to accept bitcoins as currency significantly contributed to their price rise to a historic peak.
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Another blow to bitcoin was caused mainly by the approach of the Chinese authorities, which are intensifying their efforts to suppress mining activity in the cryptocurrency segment. It tries to reduce the consumption of electricity produced from low-quality coal.
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According to Štěpán Hájek from Purple Trading, interest in investing in cryptocurrencies has naturally declined after the sale. The confidence that investors had in the market is returning very slowly and it will be a long time before the mood returns, when the bull market will have ideal conditions for further growth. Nevertheless, the current prices of most cryptocurrencies can be perceived as attractive in the long run. Over time, however, more attention will be paid to more sustainable projects than bitcoin, and cryptocurrencies such as Cardano could show how blockchain technology can be realistically implemented into everyday life.
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According to Wood & Company broker Petr Beneš, the volume of 3.5 billion crowns is only a fraction of the total amount traded on the financial market in the Czech Republic. “But the number of investors is growing comfortably. People just like cryptocurrencies, but they invest only a very small part of their capital in them, which is understandable. Cryptocurrencies continue to be a very speculative asset class, where large gains as well as losses can be realized in a short time, ”he added.
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According to Imperium Finance CEO Václav Kosáček, the continuing high volatility of cryptocurrencies is the biggest obstacle and opportunity for all. “From a trading point of view, it’s a great asset. It is the ability to go into the calculated risk and manage it in a disciplined manner that is, in my opinion, absolutely essential for success in trading, and not only with cryptocurrencies, “he said.
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Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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