Electric vehicles, thanks to Tesla, are now considered the next big thing, and it’s hard to argue that cryptocurrency trading is hogging the same spotlight. Analysts would call them “disruptive trends” and while there remain valid concerns, betting big on these assets appears to be increasingly rewarding.
The EV industry, for instance, is now deemed as the emerging standard for automakers over the coming decades. Tesla started the way and demand for these efficient and green-focused vehicles is surging. Proof of this is the decision made by the leading auto brands – Ford and General Motors to name a few – to make the switch from gas-powered to battery-run engines.
As Elon Musk had stated in the past, clean energy is the way forward and the auto industry is answering his call and making the transition. The estimate is that at the start of the next decade, cars on petrol will be relegated as merely the last option for consumers.
The Explosion Has Its Growth Pains
Moving forward, EV makers say the most immediate concern is to make the product more affordable if not reasonably priced. Even Musk supports the design of making EVs accessible if only to speed up the eventual shift from fossil fuel to green energy. Reports are rampant that soon enough a $25,000 Tesla car model will hit the road.
However, there are indications that the timeline leading to the unveiling of a budget-friendly electric car could suffer a setback. The prices of raw materials essential to the production of vehicle batteries are skyrocketing, thus threatening the EV affordability plan.
Cobalt, lithium, and nickel are becoming more expensive. Getting these metals cheap is crucial to the mass-manufacture of cheap batteries. If that trajectory continues, it will be a struggle for automakers to make their upcoming EVs more attractive to the general public.
Supplies for these metals are running low while the demand is increasing, which should explain the rising cost of obtaining them. The long-term solution, according to industry experts, is to intensify the mining of these resources.
That should tell EV makers’ inventory of these metals will not be replenished anytime soon. And that means an electric car with a tempting price tag will not materialize in the few years to come.
Bitcoin Hits Record Value Level
Notwithstanding this latest development, economists do agree that EV is a disruptive market force. And for them, the same sentiment applies to Bitcoin. The token has been soaring in value per unit in the past months and this week it breached the $63,000 mark, the highest since the crypto asset started gaining mainstream attention.
Over the past year, Bitcoin has accumulated gains of nearly 800%, and the latest ascent is largely attributed to the positive outlook for the stock market debut of Coinbase Global. The exchange is tipped for a valuation of $100 billion, further reinforcing the projection that cryptocurrency is heading north in the foreseeable future.
The latest uptick brought the total market capitalization of cryptocurrency to an estimated $2.2 trillion. Such a ballooning asset is only making the digital coin irresistible as evidenced by the growing number of young investors buying into its allure and hoping to get a piece of the pie.
Too Volatile To Be Trusted
These so-called Bitcoin bulls are intending to make use of their investments as a way of expanding their portfolios. But the more careful economies are not hiding their deep reservation – they are adamant that crypto trading is but a precariously swelling bubble. It will burst and it’s not a matter of if but when.
For Joseph Stiglitz and Nouriel Roubini, Bitcoin’s volatility should be a cause for worry. They recommend an effective oversight of the exchange to discourage the use of the currency in carrying out illicit dealings.
The best solution, however, that will soothe concerns on anything about making an investment decision is having the right knowledge. And this is true when betting on the EV market, Bitcoin, or any other investment destination.