Ever since the inception of Bitcoin, this digital currency has remained a hot topic of discussion. The cryptocurrency market is highly volatile and vulnerable to extreme price fluctuations. Considering the price fluctuation of virtual currencies and the growing concern of governments, there has been much discussion over whether or not cryptocurrency is a worthy investment.
There is no denying of the fact that the cryptocurrency market has been growing at an exponential pace and numerous people have reaped its benefits over the years. Not just that people are becoming rich but blockchain, the technology underlying cryptocurrencies, is also changing our lives for good. Certainly, this is much more than a bubble because we are witnessing the beginning of a new digital economy.
If still, you’re not sure whether to invest in cryptocurrency or not, this post is for you. Here are the top 3 reasons on why you should take the plunge and invest in the world of cryptocurrency this year.
Improved Crypto regulations
Earlier investors had a fear of losing their money and becoming a victim of crypto scams because the market was completely unregulated. However, with the unprecedented rise in cryptocurrency, better crypto-related regulations are now being introduced. This has reduced the uncertainty and as a result of trading activities, as well as prices are increasing. Better regulations will help in controlling crypto scams and thereby reducing the fears of potential investors and provide a stronger foundation for future investment growth.
Though the market is volatile, it keeps growing every day. People who had invested in cryptocurrencies in early days received the highest return on investment over the years as the crypto space boomed. Let’s compare Bitcoin’s rate of return with that of S&P 500 stocks from the year 2016. If in 2016 a person had invested $10,000 in U.S. stocks, the value of his total investment now would be around $12,000. However, if this amount was invested in Bitcoin, the value would be now a whopping of $60,000. Clearly, the returns on crypto such as Bitcoin and Ethereum are much higher than traditional investments. As such, the growth and high returns have convinced even the most skeptical actors to join in. However, it is important to note here that nobody can guarantee a fixed return and scams are common. Therefore, due diligence is necessary before investing.
Be a part of technological innovation
Most importantly, cryptocurrencies are not just an investment, but an ongoing technology and socioeconomic experiment. Blockchain, the underlying technology and backbone of the cryptocurrency world, is booming with new opportunities. The technology has huge potential to transform the way our world operates for the better and it is here to stay. Therefore, it is better to get acquainted with it so as to benefit from its future development. Many big organizations have already invested significant funds and resources into crypto, including brands like Microsoft. Various industries are adopting blockchain, from supply chain management and accounting to greater quality assurance for better operations and more transparency. As such, investing in cryptocurrency will help in supporting the continued evolution of this innovative and transformational technology.