Why invest in Cryptocurrency?
Traditional finance has developed for a long time. Many people often start to come into contact with traditional financial products such as stocks, funds, etc. after they have their assets.
In addition to the long history, the relatively stable market conditions, and the "thinking" that the threshold is relatively low. Is it also an advantage that urges everyone to choose?
However, with the advent of cryptocurrency, some people began to profit from the operation of cryptocurrency. In 2013, Bitcoin appreciated from 13 U.S. dollars to 1,000 U.S. dollars, which gradually attracted everyone's attention, and at the same time, people began to enter the market to operate cryptocurrency. Currency, eager to experience the myth of getting rich.
Until now, the price of cryptocurrency has been generally stable, but the fluctuation is still higher than that of traditional financial products.
Looking at the entire financial market, because of its small market base, cryptocurrency has a market share of less than 1% (TBD).
Once there is a large capital inflow or outflow, the volatility of capital will naturally be relatively large, which is extremely normal.
The cryptocurrency market is a weak and efficient market, which may be greatly affected by the black swan event that the market cannot predict, or the entry and exit of large institutions and investors.
For example, after the recent outbreak of pneumonia in Wuhan, Bitcoin has skyrocketed by nearly 20% in just two weeks since February 03, but it has plummeted by 40% in a single day in March.
But what we can believe is that cryptocurrency is gradually getting rid of its past image, such as the use of ICO (private cryptocurrency issuance) money laundering cases in 2017, various ways to defraud teachers, and co-investing robots, as the subsequent ICO bubble In recent years, giant companies have joined.
For example, in 2018, Facebook released Libra tokens, Line released Link tokens, Google invested in crypto industry research, etc., cryptocurrencies are getting more and more attention from large companies, and they are moving towards a stable and secure market.
Why invest in cryptocurrency?
So? This may also be your question.
People who firmly believe in the value of cryptocurrencies (we call them "believers") believe that the long-term development of cryptocurrencies is limitless. Even if prices often fluctuate sharply in the short term, in the long run, the value of cryptocurrencies is gradually Growth (especially Bitcoin).
1. Irreversibility: Cryptocurrency transactions are irreversible. Once the transaction is confirmed, no one can undo the transaction, including government agencies, cryptocurrency creators, and miners.
2. Concealment: Cryptocurrency is also anonymous, which means that cryptocurrency accounts and transactions will not be associated with any real-world identity. Bitcoin can be received through a string of addresses.
Although the flow of funds for cryptocurrency transactions can be measured, no one can associate the string of addresses with the user's identity in the real world.
3. Speed: Cryptocurrency transactions are instant, and transactions can be confirmed within a few minutes.
4. Globalization: Cryptocurrency transactions occur in global computer networks, regardless of the user's physical location. You can receive or send funds from anywhere.
5. Security: Encrypted currency funds are safely locked in an encryption system, which can only be accessed by the owner through a private key, is protected by strong encryption technology and numbers, and can hardly be cracked.
6. Unrestricted: You can use cryptocurrency at will, and you can use it without any permission.
7. Controllable supply: Cryptocurrency is more attractive than traditional fiat currencies, because its supply is controlled, and the supply is controlled through a plan written in the code.
8. No debt: Unlike credit currency, cryptocurrency is not generated by debt.
Due to the unique nature of these cryptocurrencies, many people believe that one day in the future, cryptocurrencies will achieve a status comparable to traditional legal currencies.
Therefore, investing in cryptocurrencies has become a symbol of being on the cutting edge of the times.
Ok! To put it bluntly! Many people who invest in cryptocurrency yearn for the day when they get rich! But unless you are a very early Bitcoin investor, and have been believing in it until now or in the future for so many years, or your investment capital is very high, otherwise we should not have the chance to realize this kind of dream!
This does not mean that we don’t believe in the value of cryptocurrencies. Rather, as more and more people enter the market to invest in cryptocurrencies, although the price rises and falls are still large, it is no longer the early soaring tens of thousands or tens of thousands. Times the situation!
It is precisely because the crypto market is gradually stabilizing!
In 2019, many large institutions gradually set foot in the ranks of encrypted assets, including JP Morgan Chase, Walmart, AirAsia, Mitsubishi and Tencent, and other large commercial giants.
Even the governments of many countries have gradually Aware of the importance of encrypted assets, no matter what the attitudes these institutions hold now, from the various signs, the development of encrypted currencies is unstoppable.
The author believes that this is the right sign to start investing!
Going back to what I said at the beginning of the article, many people choose to come into contact with traditional financial products, isn't it because of their stable development and history?
So why don't you try to be a pioneer at the starting point of the gradual maturity of the crypto market?
Cryptocurrency commodities vs. traditional financial commodities
If you simply compare the performance of cryptocurrencies and traditional financial products, the performance of cryptocurrencies is much better than that of traditional financial products! Looking at the picture below (2019), the orange line is the performance of the top ten cryptocurrencies by market capitalization. Although the volatility is relatively severe, the long-term performance is very good!
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