Cryptocurrency has been making noise since the day it stepped into the online trading community. What makes it stand apart from traditional money is the fact that it is digital and decentralized. There are no intermediaries or banks involved.
Essentially, cryptocurrency is the electronic money used in virtual transactions. It stays in computer files and e-wallets. Its back-up technology is known as the Blockchain Technology. This technology tracks every transaction and stores info cryptically for everyone to view.
It all started with the creation of Bitcoin in 2009. Being the first cryptocurrency, it grabbed instant attention from investors and the media. Constant fluctuations in its prices make Bitcoins and other cryptos to be a subject of debates. Some people believe it is the next big thing in the transaction methods, while others hold the view that it won’t survive for long.
Despite the varying opinions, the types of cryptos are increasing in the market. As of 2018, there were about 1600 cryptocurrencies available in the market. The number of transactions on Blockchain has also increased dramatically.
With that said, keep in mind that cryptocurrency is a vast field. You cannot make a definite statement about its future. We believe that this medium is worth investing in. There might be many people out there who do not agree. They predict market movement through technical patterns, sentiment analysis, and the basics. On the other hand, we have used a quantitative approach to drive upon our conclusion.
Here are some points to support our argument:
Changing Public Perceptions
The appeal of cryptos is that it is outside of the government and bank holding. Also, the identities of people stay anonymous in this medium. This provides a solution for those who are highly concerned about their privacy.
In the past couple of years, the crypto market has grown an insight. There are better regulatory controls in place by government and institutional agencies. These measures have compelled more people to seek ways of reducing the risk and seize a high Return on Investment. Hence, people are changing their habits and jumping onto the crypto bandwagon at a fast speed.
Despite the sensational reports of crypto volatility on media, the fact of the matter is that standard markets only fluctuate for a few days. An investor with an average portfolio hardly gets discouraged by these fluctuations. These are the investors with a long-term view of the market.
Consider this, for instance, on February 7 2019, Bitcoin had the worth of $3451.55. But on July 9th, it costs $12,647,99. This is a 3.6X growth in about 150 days.
Thus, investing in cryptocurrency requires a different mindset. You must have the tolerance to bear very high levels and rock-bottom prices. Experts state that making impulsive buying or purchasing decisions is not the wise move in the crypto market as in any other investment. One must take a keen interest in studying the market and then make the decisions of buying and selling.
The Automobile Industry will be the Major User
Many industries have started to bring digital currencies in their economic transactions. Among these, automobile companies are one of the major users. This $3.7 trillion industry is all set to accept cryptocurrency as a form of payment.
Car geeks are attracted to invest in it and reap better rewards. It has allowed for cross-border transactions, which was impossible with fiat currencies. You can access the auto platforms and purchase the vehicles of your choice. Besides, there are little chances of being deceived as both parties must disclose their identities.
The Future of Ether and Ethereum
Even though Bitcoin has been a market leader for a long time, many currencies are surfacing and making their mark. According to some, Ethereum is the next leader of cryptos. The fact that it already holds half the value of Bitcoin is the evidence of this fact. People believe that Ethereum provides groundbreaking technology for the future.
In the meantime, Ethereum and Ether are in the developmental phase. With this currency, it is not clear how many tokens are present in the market. Right now, there are more than 80 million tokens. And 72 million tokens came into existence during the Genesis crowd sale.
Moreover, the number of users in this four-year-old currency has also increased exponentially. Only in June 2017, there were more than 300, 000 transactions carried out. Indeed, Ethereum has great growth potential in the future. There is strong support for this currency in the online community.
You can read on more about what is Ethereum for further information and then form an opinion of your own in this regard.
Diversification will Bring Rewards
The instant gratification mindset of today has compelled many people to jump into the crypto market. And for all the wrong reasons. They aim to win big, but instead, they are losing big.
Parul Gujral, the SEO of Snowball, believes that this leads to total disaster. He recommends that people must diversify their scale of currencies in the crypto market. He points towards the practice of index investing by Warren Buffet. Index investing means not putting all eggs in a single basket. It may lead to a big loss sometimes. In 2018, many people faced great losses due to investing in ICO or a single cryptocurrency.
The Dollar Rule will End
The American Economy is ruling the financial landscape for a long time. But experts hold the opinion that this rule will end soon. Then, blockchain will attract investors.
Cryptocurrency is going to provide appealing options in case the market goes through an unpredictable event. Due to their untethered nature, crypto coins will retain their value despite the economic strife. So when other currencies swing, cryptocurrencies will be present to safeguard the savings of people.
There is no doubt that cryptocurrency is here to stay. There will be steady changes in the value and uses of the currency. We are certain that more people will be joining the stream instead of straying away from it.
What do you think? Do you plan on investing in cryptos any time soon? Share your opinions!
Evie Harrison is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.