Cryptocurrency has gone from a fringe curiosity to a mainstream medium of trading in a very short period of time. Bitcoin, the world’s first cryptocurrency, was launched in January 2009, shortly after the financial crisis rocked markets around the world. It took a decade to become one of the most sought after digital assets. While it has remained in oblivion for most of this decade, its sudden rise has led many of these pieces to flourish. One of the main reasons for their rise was the promise of almost vertical returns. So it’s no surprise that investors are flocking to these new digital assets to gain a foothold quickly.
But the question remains: should we invest in digital assets? In other words. Why should people invest in digital assets like Bitcoin or any other crypto coin? These coins are extremely volatile – as soon as they go up, they go down much faster. Since these work online, what security features will protect an investor’s money?
Granted, most of these digital assets are volatile. Experts say that as they grow and are accepted and more and more people start trading or with these coins, they will gain stability just like the stock markets. But what about security? The world of cryptocurrency runs on blockchain technology, which is new and many people are still unfamiliar with it.
However, tech experts claim the technology is very democratic in its approach and completely safe to use. It is based on the idea of a distributed digital ledger, which means anyone can view any transaction anytime, anywhere. Every transaction is stored as data on the blockchain and no one can manipulate it.
There are also some advantages to investing in it:
1. Booming sector
Over the past two years, the cryptocurrency market has grown by leaps and bounds. For example, at the end of 2019 Bitcoin’s price was just over $ 7,000 (around Rs. 5.18 lakhs), but today it is trading above $ 45,000 (around Rs. 33.34 lakhs). It had reached a value over $ 60,000 (approximately Rs. 44.46 lakhs) in February and April of this year.
2. Digital ecosystem
Not just cryptocurrency, but a whole new digital ecosystem is taking shape in the post-pandemic world. Besides cryptocurrency, there are NFTs or non-fungible tokens. Also, instead of directly investing in crypto coins, technicians also get involved in the process of generating these coins, called mining, and earn a decent income.
3. Impressive feedback
Cryptocurrency offers the best returns, only matched by the real estate industry. Unlike the real estate industry, investing in digital assets doesn’t require you to invest a large amount. You can divide your investments into several pieces.
4. Passive income
Investing in digital assets and online businesses is a good way to earn passive income. You can continue with your regular investments and the money will accumulate in your account through constant income without breaking a sweat.