If we learned something from what happened and it’s still happening this year, is that everything, including our way of living, is still very fragile, and when that is the situation, choosing and deciding on where and in what to invest your money, can be difficult. Some questions like should I invest in stocks, how about real estate, gold was and is always the best option, etc. are something that we can hear (daily). But what about virtual currencies?
To those who are not that familiar with what digital currencies represent and what they can expect from it, it may sound new. But even the most skeptical ones must admit that there is a grand opportunity for everyone who wants to do just a little bit of research. Technology is continually and rapidly advancing, and there is no reason not to trust it, especially when it comes to cryptocurrency, which primary goal was to take power from the third parties (banks) and gave it back to the people. That is only one of the numerous reasons why digital currency is the best solution for your investment, and in this text, you will find out more about the other ones.
1. Possible Value
Every opportunity comes with some risk, and it is the same with cryptos, but there is no better example than digital currency on how the demand sets the price for something. What this means is that even though this whole currency world is still pretty new, the people want to break free from banks and not have the government intervene with their transactions. That is why today several cryptocurrencies like Ethereum, Bitcoin, Litecoin, etc. people already use for everyday purposes.
Among them, there are still some new cryptos that are not that popular yet and which price is not that high at the moment. We all remember how Bitcoin reached the worth of almost 20.000 USD in 2017. All of that was because of the people and their trust in BTC. That is how it works, and with the fact that there are only 21 million BTC available, it makes it an ideal currency as its worth will always be high. That price today is about 7.000 USD for 1 BTC, but some predictions state that the value can only go up, and it’s the same for almost every crypto out there. The global virus pandemic affected every sphere of our life and, of course, our monetary system, and although people use the fact the price for one crypto can rapidly go up or down, with everything going on in the world today, even the value of the dollar is going down.
People often think of crypto as a way for criminals to hide their money activity, and that could not be further from the truth. The main goal is that everyone can freely choose what crypto they want to invest to and in what digital wallet to store those coins, all that with knowing that everyone’s (personal) data is protected. Yes, there is the possibility of cyberattacks, but every single transaction is heavily encrypted, making it quite challenging to get hacked. The whole aim of encryption is to make everything as safe and secure as possible.
3. Young Technology
Some think of this as a reason not to invest, but everything has to start from somewhere, and just because something is new, it doesn’t necessarily mean that it is bad. It all depends on the perspective, and for the majority, it is a huge opportunity to invest in something most of the people want and need, and not minding the fact that it is young. Knowing that there are a lot of cryptos still available, and also that there are even new ones, makes the investment risk even smaller.
The only thing that someone might need for crypto, besides the funds, is the secure and fast internet. We all do our research before deciding on something, especially when it comes to money, and the same is for buying and investing in cryptocurrency. The risk is always there, but the smart way is to put your trust and funds in several cryptos, making the option for success more likable, and most importantly, not to invest everything – only invest a small percentage of your overall capital. Doing it this way, even if the drop in the value of some crypto occurs, you will still have your money, and if you choose to invest in multiple cryptocurrencies, you will have them.
5. The Bubble
The hype created over cryptocurrency, and especially over Bitcoin, also doesn’t necessarily need to be a bad thing. Numerous times in the past, some new development in the technology went through this (3D printers, e-commerce, genome mapping, etc.), and even though the bubble created over cryptos can burst, it has unquestionably changed our way of thinking when we talk about currency.
Even if something like that happens, which is highly unlikely, the future monetary concept will be about digital money. The risk of digital currency collapsing is quite small because it represents something unique and something people want to be part of, and believe in it. And when there are more pros than cons about investing in it, it makes everything very sustainable for quite some time.
6. Favorable Predictions
Everyone wants to know when will the next big crypto move be, and almost every objective prediction about crypto is claiming that the value, especially for BTC, can only get higher. Although some predictions state that the next year will be “the one” and by others, that is something unlikely to happen soon, the majority of them show that we will have to wait, but only for a year or two. That doesn’t mean that the value will not rise, and it will stay as it is, it only means that it needs some time to sort out its slow transaction dealings and high transaction costs.
Technology always had an immense impact on our lives, and although there are still people who don’t believe in digital currency, all that changes when we look at the facts. Many benefits are available only by using those coins, which is why more and more people are choosing to invest in them, and that, with all reasons mentioned above, is why even if that bubble bursts, it is worth of risk. If you need more info on why crypto is the best solution for your investment, check sciencetimes.com.