It’s an undisputed fact that cryptocurrencies have seen incredible growth. Driven by the remarkable growth of bitcoin and Ethereum, the field of digital currencies has continued to expand.
Besides the initial coin offerings, there are various blockchain investment products from non-fungible tokens to decentralized finance. Most digital currency enthusiasts strongly believe that the investments can generate a new batch of crypto millionaires. But people who haven’t yet invested in cryptocurrency might begin to wonder whether there are enough reasons for them to start today. Below we shall be considering some of the main reasons people may want to buy crypto.
The Transformational Technology
The blockchain technology underlying cryptocurrencies like bitcoin has been described as a possible gamechanger for many industries from healthcare and banking to supply chains and shipping. By removing trustee actors and intermediaries from computerized networks, distributed ledgers will help new types of economic activities that weren’t possible a few years ago.
Speculation Or Potential?
Although most supporters still hold onto the belief that cryptocurrencies might become part of our daily life, the crypto market is today largely governed by speculative trading. Research into the blockchain activity shows that exchange trading is still the most popular use of digital currencies and accounts for more economic activities than ordinary purchases and trades. Crypto skeptics Jamie Dimon, Bill Gates, and Warren Buffet have warned people of a possible crypto bubble.
Digital currencies aren’t unique in being subject to irrational exuberance and speculative manias. Other assets like precious metals, technology stocks, houses, and even cannabis stocks have been subject to market bubbles that didn’t end well for many investors.
Scams, Thefts & Other Losses
One of the most unique and impressive aspects of digital currencies is a significant liability. Because cryptos don’t rely on the central intermediary, it falls on the user to safely store security keys that control the blockchain address.
Although it’s clear there are numerous reasons to be skeptical of cryptos, most traditional investors have, over the years, been won over by the new investment portfolios. The digital space is today described as a highly transformative sector with the potential to transform the world the same way the Internet did.
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Gertrude Chavez-dreyfuss,Sujata Rao,Tommy Wilkes. (2021, May 19). Bitcoin plunges: A bust or a buy? Reuters. https://www.reuters.com/business/bitcoin-slides-below-40000-ether-tumbles-2021-05-19/
We’re all crypto people now. (2021, May 18). The New York Times – Breaking News, US News, World News and Videos. https://www.nytimes.com/2021/04/25/technology/cryptocurrency-mainstream.html