By now everyone has heard about cryptocurrencies like Bitcoin, though this is often from negative news reports about price crashes and illegality. Putting the sensationalist headlines to one side, is investing in cryptocurrency a good idea in 2018? Or is the risk simply too high?
Let’s take a closer look at why you might consider buying and trading …
The Blockchain is Being Embraced
In the early days of Bitcoin and blockchain technology, nobody could predict whether the concept would take off and make early adopters rich or would quickly fade into obscurity.
Today, those early adopters are millionaires and the underlying technology is being embraced by leading banks and other financial institutions across the globe.
A recent Greenwich study reveals that blockchain budgets increased by 67% since 2017 and top-tier banks average 18 full-time staff working on the technology.
Quite simply, Crypto and Blockchain are here to stay and that means there is money to be made if you play it smart.
Regulators Are Onboard
While ideologues tend to be against all forms of regulation because Bitcoin was invented to take control away from centralized hands, the fact that governments are allowing the use of cryptocurrency and regulating it, instead of outright banning it, is resulting in increased trading activity and trust in the markets.
Regulations help tackle many of the scams that have caused volatility and kept investors away. They want to be assured that their coins are safe and there is legal recourse should things go wrong.
In turn, this is building a stronger base for future investment growth, and now may be the time to jump onboard.
It’s Easier to get Started
One of the biggest barriers to investing in crypto was how difficult it was to actually buy and trade the currencies. Some banks would block transactions, exchanges would disappear overnight, and even if you managed to get hold of BTC, it couldn’t easily be sold when the time came. This is all without mentioning the technological learning curve associated with mining, wallets, and monitoring transactions.
Today the main exchanges have stabilized, it’s much easier to buy and trade, and anyone with a smartphone can easily get their head around the various wallet and trading apps. It’s as fast as getting a direct deposit loan through sites like Elc Loans.
Stability Can Only Increase
As the popularity of cryptocurrencies (particularly Bitcoin) increase, the market can only become more stable. Events that would have caused mass price fluctuations in the past can now be contained by the sheer number of participants.
The truth is, while the innovative digital money has been shrouded in controversy and techno-babble since it was launched in 2009, today it is actually much closer to a viable everyday currency than most people realize. All over the world consumers are using it to buy everything from computer equipment to pizza, and companies and organizations as diverse as Microsoft and the American Red Cross are on board – neither of which are known for their drug pushing and money laundering.
Growth Potential
When Bitcoin first caught on in 2013 the market was made up mostly of speculators hoping to cash-in on short-term volatility. The bitcoin price shot up to an all-time high of over $1,000 in December that year before plummeting to below $600 days later and eventually dropping below $500 in the spring of 2014. As the market found itself again bitcoin value skyrocketed to highs of $20,000 and is currently over $6,500.
Users have a right to be wary. Will it all come crashing down again? There are of course differing opinions, but today far more people are using it day to day, there’s much more investment in the technology and infrastructure, and thus the bitcoin market is maturing.
Ultimately, like any investment, it’s wise not to put all your eggs in one basket. Putting some of your money into cryptocurrency could reap great rewards, but those rewards are in the likes of Bitcoin’s long-term success not day to day volatility.
With increasing popularity and ease of use, mainstream acceptance of blockchain technology, and the reassuring presence of regulations that aren’t about stifling crypto, 2018 makes for a good year to get involved.
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