Was Bitcoin stronger than the stock market?
In general, we can say that Bitcoin functions as a stock exchange: it grows, falls, there are good days, and sometimes it seems that a series of bad days will last forever. To date, although Bitcoin has broken the record of $11,000, it has returned to $9,800. All crypto enthusiasts are waiting for him to "beat" the gold and become world famous.
Bitcoin is the biggest challenge to stock exchanges...
By making constant comparisons, no one can give an unambiguous answer as to whether Bitcoin is really a direct competitor to the stock exchanges. It is constantly growing in spite of no one's predictions. Many have already begun to wonder whether the American stock market has a future. It is quite possible that NASDAQ will disappear and the critical industry will become the primary area for investment. Some sources say that BTC will soon surpass the capitalization of Apple. However, for now the stock market seems not to be going anywhere for several reasons... According to the consulting company The Motley Fool, one of the reasons why cryptocurrencies are rising in price so quickly is the lack of government capacity to control the process. Thus, it is much easier to manipulate digital money than anything else on the exchange. This situation reflects both the strength and weakness of cryptov currencies. On the one hand, their rate is growing faster and easier than exchange quotations, on the other hand, we know very little about these assets compared to the securities of recognized companies like Apple.
Crypt currencies do not quite correspond to the status for which they are claimed.
Despite the undeniable increase in the popularity of Bitcoin, exchanges remain somewhat more familiar and acceptable at this time. It cannot be said that circumstances will not change in the future, at the moment huge companies like Amazon are experiencing daily jumps for various reasons. A number of investors still consider exchanges and securities as good opportunities to learn.
Moreover, there are organizations such as Bitcoin Investment Trust. It closed in August this year. Its value exceeds $1 billion. This money is supposed to come from high fees and premiums. Another example: First Bitcoin Capital Corp. practices breaks in its work schedules. This causes accusations that the information provided by the company is unreliable and lies to its holders about the real value of their investments. Such situations occur in the absence of a centralized regulator. As long as all possible loopholes for digital money fraud are not covered, they cannot be considered an ideal investment tool.
But, there is one huge plus.
At the same time, Bitcoin and cryptovolta have one advantage. They can remain stable where the exchange market cannot. The fact that they are not controlled and regulated by the same rules as stock exchanges allows them to confront unknown threats of the stock market that have manifested themselves since the late 20s.
Some attempts at improvement, such as the enhancement of Ethereum via post-DAO in 2016, have made it possible to keep user information secure and protect virtual coins from malicious activity. And the software used by Bitcoin makes it relatively difficult to read.
Learn from both sides.
The point is that there is no system without flaws. There's always a way around sharp corners. However, if you understand the benefits of diversification and use the opportunities provided on both sides, then exchanges and cryptov currencies will continue to work both individually and together, improving the system of protection against future financial threats.