These days, many investors are investing their money in Chainlink Cryptocurrency. In mid-2021, we have seen a significant pump in Chainlink price. But on the other hand, it suddenly fell at the beginning of 2022. Therefore many people think it is worth investing in LINK tokens.
Well, there are several factors, such as demand, government regulations, crypto exchanges, and competition, that affect the price of Chainlink. So before you invest in this particular currency, make sure to understand all those factors carefully.
Is Chainlink Worth Investing In 2022?
If you are interested in this coin, you might be willing to know whether it is worth buying or not. According to the technical analysis, LINK may show positive movement in a coming couple of years, providing significant returns to their clients. However, these predictions often get wrong, therefore do not follow them blindly; instead, do some search.
Why Should A Person Invest In LINK?
Decentralization is the biggest factor that attracts investors to LINK tokens. When you make payment using fiat money (issued by the government) such as the Dollar or Rupee, your funds are issued by higher authorities such as banks or the government.
But when you make payment using a LINK token, your transactions are only limited to the sender and receiver, eliminating the need for a third party. In addition, it runs on the blockchain technology that uses different IP addresses so that no one can trace your location.
Factors Responsible For Price Movement
Demand and Supply
The simple concept of economics, “demand and supply” determines the price of Chainlink. when the demand for LINK exceeds its supply, the price increases. On the other hand, when the supply exceeds demand, the price decreases. This is why the price of cryptocurrencies rises suddenly when they gain popularity.
News
In today’s world, everyone has mobile phones with a stable internet connection. However, surprisingly more than 80% of smartphone users use social media and access different viral news and articles, which plays a vital role in changing the piece of cryptocurrency.
For example, suppose news is in trend with a headline that "Chainlink will show positive movement in coming days," then people will start buying it blindly. Therefore its price will increase significantly. In addition, random buy and sell is another reason that affect the price of LINK.
Crypto Exchanges
No one can deny that if the currency is listed on more exchanges, people will buy it more. Nowadays, almost every exchange offers bitcoin and Ethereum, but there might be some smaller coins or tokens offered by fewer exchanges, which limits investors' access. Fortunately, there are more than 52 crypto exchanges where you can place a Chainlink trade.
Regulations
Still, certain governments do not appreciate the decentralized system of LINK tokens. Therefore many governments have banned crypto or added tax that ultimately increases the price. If crypto is not legal in your country, then LINK investment can be risky because it can be banned anytime, and you will lose all the investment.
...............................................................................If you want to know what the price of Chainlink will be within the next ten years, our Chainlink Value forecast can give you a really good idea of what to expect, you can check the link below or enter our chat rooms and talk with crypto enthusiasts and traders.