The last 100 years have been tumultuous, to say the least- especially when it comes to financing, money, and economics. We have seen multiple global crashes, financial crises, recessions, and devaluations of currencies to the point that countries have almost become bankrupt.
With the world’s currency values in a current state of volatile flux, savvy investors are looking to alternative means to safeguard their money.
That is where cryptocurrency comes in. A cryptocurrency is defined as a digital asset that is designed to work as a medium of monetary exchange while using cryptography to secure its transactions. The idea behind it is that all cryptocurrencies are decentralized, secure, and offer a degree of anonymity that one cannot get from using the banking system.
Cryptocurrencies are also known as digital currencies, alternative currencies, and virtual currencies. The most prominent part of their appeal is that as they are not controlled or regulated by any central bank or government entity, they are entirely out of the remit of political influences. As such they cannot be controlled by the state and instead, are controlled by the people that use them.
As for why investing in cryptocurrency will be profitable in the long term, let us look at the history of one of the most popular cryptocurrency – Bitcoin.
Back when it was launched in 2009, the value of 1 BTC was equivalent to $1 USD. Fast forward to 2017, and it is worth way over $6000. Let’s put it this way – if you had invested €10,000 in Bitcoin in its first year, you would be sitting on a cool $300 million today.
That is not to say that every cryptocurrency out there is a goldmine and will transform you into a millionaire with minimal effort and in very little time- but if you are savvy and chose your vehicle of investing wisely, you could be onto a winner. Putting some serious effort into researching the most promising currencies out there, along with looking at their past performance and predictions for the future will help you to make a deliberate decision that will hopefully pay off in a couple of years’ time.
There are more than 900 cryptocurrencies in existence and some of the most popular ones like Ripple, Ethereum, NEM, and Litecoin are expected to see such levels of growth over the next few years. Now is the time to make your move, and to strike while the iron is hot.
As technology continues to progress and we seek new and more convenient ways of doing practically everything, the popularity of cryptocurrencies is set to keep increasing. Likewise, the growing distrust of governments and the general disillusionment with financial institutions and the people behind them means that alternatives to fiat currency are growing more and more attractive to a broader base of individuals. In short, an investment in the right cryptocurrency now will stand you in good stead to collect a hefty profit in the future.
Cryptocurrencies and digital money are our future, and whether we like it or not, the shift away from government and state-controlled money is happening right before our eyes. Do your research, pick a currency or to for your portfolio, and who knows – you could be looking back in a few years and thanking your lucky stars that you took the chance.