Cryptocurrency. It is taking the world by storm, and every investor wants to get their hands on it.
Early in 2021, the value of crypto as a whole surpassed $1 trillion.
But, does that make it a good investment? If so, will it stay so?
Here is why it is a good idea to invest in crypto coins.
The world is becoming more and more international as internet technology has advanced. This means that someone from the United States can do business with someone from Singapore at the click of a button and see their face rather than flying across the world to do so.
With that, comes currency. In terms of paper money, a lot of countries have their own currency, which means that you need to change currencies every time you enter a new country.
Crypto is different because it offers people from both the United States, Singapore, and many other places to be able to use the same currency. This effectively makes business payments, and even informal payments, go a lot smoother across international borders.
If you are an investor, you may look at this as a pure investment than a real form of money, and that can work for you too. Let’s say you bought a bond in the past, and you probably got a 2-3% return on that at best over multiple years.
Well, you might have arguably even lost money doing that, given possible inflation. And what about regular stocks? For most, you are lucky to get a 5-10% return on a good stock.
With crypto, you can get big rewards at a much quicker pace.
This chart shows Bitcoin’s coin value over the last five years. In 2016, the crypto coin was valued at less than $1,000 at one point.
However, if you look at the value now, it is worth over $40,000. On top of that, it did go up a lot faster than in five years, with it creeping up to near $20,000 by the end of 2017.
There is one catch, with that being that this is a volatile market and it is easy to take a big loss as well. However, crypto has proven time and time again that it can recover from big dips downward.
Now, there are more and more opportunities to get into crypto, which means more and more new people are being exposed to it. With more cryptocurrency investing websites and apps being developed, there are fewer excuses and more accessible for people on the fence to get involved.
The more people start to invest in crypto, the more credibility it has and the more momentum that builds. Eventually, because there is only a limited supply of coins on the market, that means the coins that you do have are worth a lot more money.
Invest in Cryptocurrency
What are you waiting for? Cryptocurrency is only expected to rise in value, and more and more people are starting to jump on the bandwagon. Don’t get left behind.
For more articles like this, read some others in our Investment section.