Why should you invest in cryptocurrency?

Why should you invest in cryptocurrency?

There are many things to take into consideration when investing in cryptocurrency. Here are three main ones:

Is it a transformative technology?

Blockchain technology, which underpins bitcoin and other cryptocurrency, has been called a potential gamechanger in a wide range of industries. This includes shipping and supply chains, banking and healthcare. Distributed ledgers are able to facilitate new forms of economic activity by removing trusted actors and intermediaries from computer networks.

If you believe in digital currencies’ future, this makes it a great investment opportunity. If you believe in this promise, cryptocurrency investing can provide a way for you to make high returns and support the future of technology.

An uncensored, stable and reliable store of value

Another reason people invest in cryptocurrency is to have a long-term, reliable store of value. Most cryptocurrencies are limited in supply and therefore cannot be used as fiat money. It is impossible for any government agency or political body to reduce their value by inflating them. A government agency cannot tax or confiscate tokens without consent of their owner due to cryptographic nature of cryptocurrency.

People who fear hyperinflationary events or bank failures will find cryptocurrency appealing because of this property. Bitcoin has attracted a lot of attention because of its deflationary, censorship-resistant and other properties. Proponents have called it “digital gold.”

Potentiality or speculation?

Many supporters believe digital currencies can become part of everyday life. However, the majority of cryptocurrency trading is speculative. Studies of blockchain activity show that exchange trades remain the most prevalent use for cryptocurrencies–and account for far more economic activity than ordinary trades and purchases. Warren Buffett, Bill Gates and Jamie Dimon, CEO of JPMorgan, have warned about a possible crypto bubble.

Cryptocurrencies aren’t the only ones that can be subject to speculativemanias and irrational excess. Market bubbles have also affected other assets, such as technology stocks, cannabis stocks, precious metals and houses. Many investors lost their money.

Some speculative behavior in cryptocurrency is normal as it’s a new technology. This is especially true as blockchain technology develops. New investors need to be cautious about falling for psychological traps like Fear of Missing Out, Herd Intuition, and the Greater Fool Fallacy. These can make the difference between taking calculated risks and being foolish.

Altalix is a great place to start crypto.