Cryptocurrency is the internet’s currency. As we all know, it is a digital anonymous currency that is decentralized.
No government or bank has any control over it and its functions.
It’s a peer to peer exchange system based on all-time updating ledger which is the blockchain.
While many financial experts have claimed that cryptocurrencies are the future currency, there are many who are skeptical about it and consider it a major scam and a bubble.
And we have seen many governments fearing crypto and its anonymity which has the potential to exploit a country’s economic system and promote cyber-crimes including tax avoidance.
But for the common investor, the common questions lie on whether it is safe to invest in cryptocurrency or not and if it is not yet too late to do so.
Cryptocurrency, especially bitcoins, have attracted many people and investor’s interest and attention, especially in the recent years. The price growth of bitcoins along with other cryptocurrencies has taken a remarkable increase since its inception.
The rise in its price is mainly due to the surge in demands, rising popularity, increasing applications, and other factors. While many are thinking that the golden moments to invest have elapsed,
it may not be true. While it is true that the value of bitcoin and other crypto-currencies may drop or stagnate for a time, they are highly predicted to rise in value sooner than anticipated. This is because:
• The market-cap of crypto is growing, and it has a huge potential ahead.
• Bitcoins and other alt-coins are finding its use in many applications and even banks of some governments are open to them.
• The number of bitcoins and cryptos that can be mined is fixed, which means the demand for growth in the future is inevitable. Thus, the future price has nowhere else to go but up.
• Powerful governments are starting to have a soft stance against crypto regulations.
Thus, with simple analysis and market trends, it can be safe to assume that investing in bitcoins and cryptocurrencies can be profitable with high returns in the near future.
It is also necessary for an investor to not panic when the price of cryptocurrencies go up or down since such price declines or surge are nothing but immediate reactions of some temporary bad or good news.
It is recommended to hold the cryptocurrencies for a much longer time and not to aim for short-term profits. Although we can never know how exactly will things turn up, it’s safe to say that bitcoin and other cryptocurrencies are here to stay.