Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
The year is coming to its end and it’s time to announce the results. Cryptocurrencies have become the best performing asset class of 2019.
In what is seen by many within the crypto space as a win, it has emerged that cryptocurrencies have become the best performing asset class this year. Sources have indicated that based on recent research, the cryptocurrency digital asset class has outperformed other asset classes by a wide margin. Even though cryptocurrencies are still below the highs experienced in 2017, cryptos as an asset class have made an incredible comeback from the so-called crypto winter when everyone thought that it was the end of the asset class as a whole (we can be said looking at the recent data).
Cryptocurrencies are still trading at least at 100% above their 2018 price levels even during a slight downtrend (Bitcoin prices being one such example). 2019 didn’t start as expected but the massive rally due to Bitcoin which is the first of the cryptocurrencies did much to lift the crypto space into its current position where it has outperformed all traditional asset classes that include gold and oil alongside paper assets.
Although Bitcoin prices are up 100%, other cryptocurrency tokens that litter the crypto space haven’t fared as well but still hold potential for massive growth further down the line. Ethereum which comes only after Bitcoin in terms of market capitalization has made gains of up to 35% so far and XRP, the one cryptocurrency that everybody thought will beat expectations, is also 25% in the negative as per January’s prices.
While this presents a mixed bag for many, it also means though that cryptocurrencies have passed the proof-of-concept test having been able to stay above par in terms of perception and having been able to capture the hearts and minds of the millennials and the Generation Z who will be the ones that will drive the mass adoption of the asset class because they believe in getting things done fast and on time as well.
In comparison, major indices indicate that the world economy has rebounded to levels before the 2009 global financial crisis which threatened to destroy the very fabric that held everyone together trade-wise. The S& P 500 is now about 369 percent up from those lows indicating a great run so far while the Dow Jones Industrial Average is up 326 percent. Bitcoin alone, however, is 12 million percent in what seems like a bizarre coup de grace on other asset classes within the same period.
This has also created a scenario where it seems that the digital asset class of decentralized ledger technologies is the next big thing in the financial world. The core concept of decentralized finance driven by the cryptocurrency class might just be the next level of evolution for global markets. As to the true test of this allusion, it is only time that shall tell.