April 6, 2021 | by sandeep
Why You Should Invest in Cryptocurrency Right Now
By Mateo Jarrin Cuvi
Let’s start with a fairy tale of sorts.
The year is 2013. The month, October.
Your geeky, computer-literate buddy―let’s call him Bobby Blockchain―tells you to invest in the new-ish digital currency Bitcoin (BTC). The price per coin is about $100 and Bobby has already invested $20 thousand of his lifelong savings in this, his latest pursuit of wealth, happiness and a Lambo.
Image Credit: Giphy.com
You spend an evening reading up on cryptocurrencies online and decide it’s too risky. You tell Bobby you’re going to pass on his offer. You wish him luck.
Fast forward eight years. It’s now March 2021.
Mr. Blockchain―he’s added a prefix because he’s now filthy rich―is chilling poolside in his mansion, a collection of speedsters and vintage pinball machines in the garage. He has amassed about $12 million in wealth thanks to the price of one Bitcoin now falling just shy of $60 thousand.
You, instead, are driving a beat-up Kia while asking yourself ‘What if?’ at every waking hour.
Bitcoin and other cryptocurrencies have been on a rampage as of late with prices moving onward and upward. This rapid surge and the large volatility that comes with all-things crypto has made it one of our traders’ preferred instruments to work with.
So in honor of this progress and to celebrate the success of so many Bobby Blockchains out there in the real world, here are our top five reasons why you too should be investing in cryptocurrency.
Traders Love Seesawing Prices!
To a certain extent, price volatility has become Bitcoin’s main calling card.
While prices have been steadily increasing since about the end of 2018, this rise has been marked by plenty of volatility in between.
Trading or investing in Bitcoin is definitely not for the faint of heart.
Prior to its current winning streak, Bitcoin’s price had hit a then high of almost $20 thousand back in December 2017 to only see those gains fall apart and drop to below $3,500 one year later.
As Robert Farrington, a senior contributor at Forbes, put it, “While it’s always fun to win, that’s a wild ride many people would never want to be on.”
This wild ride, however, makes investing in Bitcoin heart-pumping.
Tom Meyvis, a marketing professor at NYU, says, “With something like bitcoin, it’s exciting because there’s constantly something happening…You can check it 10 times a day and the price can vary wildly.”
Plus, as we all know, this seesawing of prices marks a wonderful opportunity for traders to trade and potentially win big.
A Super Liquid Asset
Besides being quite volatile, Bitcoin and other crypto assets are also highly liquid.
That means that it is very easy for anyone to buy or sell Bitcoin using a myriad of online trading platforms with only the tap of your finger.
According to Benzinga’s Caitlin McCormack, “Bitcoin is arguably one of the most liquid investment assets due to the worldwide establishment of trading platforms, exchanges and online brokerages,” which allow you to “easily trade bitcoin for cash or assets like gold instantly with incredibly low fees.”
These days, with prices pushing upwards, the supply and demand for cryptocurrencies is riding sky high, so if you wake up one morning looking to invest in Bitcoin or want to offload some of your spare cryptos, it’s super simple to do.
Easily Accessible & Democratic
Investing in crypto is unlike investing in stocks, bonds or real estate, which can be tricky, may call for a broker’s help or a special certificate or license to trade, and requires plenty of knowledge and capital.
Crypto, writes Benzinga’s McCormack, remains “minimalistic,” allowing traders to “simply buy or sell bitcoin from exchanges and place them in your wallet” in a matter of minutes, if not seconds, without the need of special knowledge or investing days of your life studying.
With the many online platforms available, you can very easily open up an account, create a wallet where to store your cryptocurrencies, and invest as much money as you feel comfortable with. There’s no real fuss involved.
Overall, Claire Lovell, Associate Director of Product Management at Gemini, believes Bitcoin and its crypto brethren have helped democratize investing by “[eliminating] the weak points of the modern banking system by bringing access directly to consumers .”
No Fees or Hidden Charges
Considering the crypto world’s decentralized set-up, another advantage of investing in these assets is that there is no financial institution that will be asking you to pay hefty fees to manage, receive or transfer your assets.
The money you make from your investments in cryptocurrencies will always be yours unless a hacker steals your private keys or you misplace your cold storage unit, whatever that may be.
As explained by David Hamilton for Securities.io, “most analysts agree that to regain control of your financial future is the message that best conveys Bitcoin’s inspiration.”
“Its development was meant to provide a sound form of money free from the manipulation of outside factors,” he adds.
Furthermore, Grayscale, a leader in digital currency asset management, writes, “Through a global transaction network, bitcoins can be sent securely across borders, in any amount, at low costs, as seamlessly as a text message, and without the need for trusted third-parties.”
Similarly, Bitcoin and other cryptocurrencies are not impacted by inflation.
Dambisa Moyo, a global economist writing for the Financial Times, explains that Bitcoin offers “an alternative way to park savings,” one that does “not contain the risk of inflation” and “can maintain purchasing power in real terms.”
Image Credit: Giphy.com
It’s Going Mainstream
Cryptocurrencies, particularly Bitcoin, are quickly becoming ubiquitous with plenty of large social media platforms, online payment companies, other tech giants and financial institutions starting to embrace them.
In recent months alone, companies such as PayPal, Square, Tesla, Mastercard, Morgan Stanley, MicroStrategy and Bank of New York MellonCorp, to name just a few, have made plenty of inroads into the crypto world.
Mark Hipperson, CEO of Ziglu, a crypto platform, believes digital assets are well on their way to becoming mainstream.
Speaking to The Times, Hipperson says, “With more and more big brands such as Tesla and Starbucks accepting crypto, [Starbucks is testing a way to let users of its mobile app pay for coffee and food with the cryptocurrency Bakkt Cash, for example] there now seems to be little doubt that one day soon crypto will be accepted at as many places as traditional currencies.”
Payment platform Square, for instance, bought close to five thousand Bitcoin back in October 2020, believing in the crypto currency’s “potential to be a more ubiquitous currency in the future and an instrument of economic empowerment that provides a way for the world to participate in a global monetary system.”
Now that you have all the details on the many allures of Bitcoin and its crypto brethren, what are you waiting for to open a position or two?
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*Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of proﬁt, which may arise directly or indirectly from the use of or reliance on such information.