A cryptocurrency is a digital medium of exchange for goods and services created to ease the transaction and also aid the cashless transaction. These currencies use decentralized devices against the popular central banking system and centralized digital currency.
Transactions through cryptocurrencies are highly secured through cryptography which controls, monitor and verity every initiated transaction. Cryptography can also be used to create new coins, which can make it difficult for hackers to forge coins.
Although Bitcoin is the most popular cryptocurrency, other currencies are also striving in the market, currencies such as Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Dash and Bitcoin Cash (BCH) to mention a few.
Cryptocurrencies can be a bit risky as the price is not stable, the market price fluctuates and it is unpredictable. Generally, cryptocurrency trading and investment are for people who are risk-takers and looking into investing in a highly profitable investment.
Over a couple of years now, cryptocurrencies have been doing well in the market, though there have been little bumps along the road, several currencies have pulled through.
Why Invest In Cryptocurrencies
Below are reasons to invest in cryptocurrencies:
Blockchain Technology Is The Future
With blockchain technology serving as a database for cryptocurrencies, transactions are safe and secured. Hassle-free transaction from anywhere around the globe. Many users believe this technology is going to redefine the world economy. Recently, Blockchain has been gaining massive adoption across the world. With this ongoing growth, there are possibilities of a long-term high profit.
Cryptocurrency An An Alternative Mode of Payment
With stress involved in the conventional currency, Cryptocurrency is offering a stress-free transaction method to users. Cryptocurrency authorizes borderless transactions between people which is safe and secured, there is zero need for third party and details are highly confidential. Crypto Investors and traders are hoping for worldwide adoption of cryptocurrency across vendors, ATMs, and banks, thus increasing the market value and profit.
Currently, people are not looking into investing in cryptocurrency due to the risk of an unstable and unpredictable market price. Sadly, cryptocurrencies are undervalued by those who are not into trading. According to recent predictions by some analysts, by the year 2024, there is the possibility of cryptocurrencies hitting $5 trillion marks. Thus, opening the window for long-term profit as there is going to be a surge in market value in the future.
- Store of Value
Though Gold is popularly known as the best store of value, with the invention of new technology, digital currencies are taking shapes in becoming a store of value for people. With the security and privacy attached to cryptocurrency, it can replace Gold in the future.
Recently, many financial institutions have shown interest in the cryptocurrency market. This is because they foresee great profit opportunities in the crypto space. Since the beginning of this year, prominent people in the finance sector have started trading with cryptocurrency, people like JP Morgan, and Goldman Sachs. Of recent, Fidelity, the sixth-biggest fund manager in the world started offering digital trading services to big institutional investors. So far, Government agencies are also looking into incorporating cryptocurrencies and implementing blockchain technology. Example of such agencies are the China and Japan Government, the Japan Government has embraced cryptocurrencies as a legal means of digital payment, while the China Government has permitted blockchain transactions to be used as proof of transaction in a court of law.
Bitcoin (BTC) Price Today – BTC / USD
Cryptocurrencies are going to be a hit in the future due to their transparency and use of decentralized digital technologies which has a high potential to redefine the economic world.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.