Diana Smith
For all those who managed to save a bit of money and now plan towards investing it wisely, there are so many great options. Trading in U.S. equities, yield enhancers and emerging marketing equities are all solid ideas, however, one particular possibility is gaining more and more momentum with each passing day – investing in digital currencies. Unfortunately, even today when Bitcoin is practically a household name, a lot of people are still suspicious about it ever becoming a mainstream currency. Nonetheless, here are top four reasons why so many people decide to invest in digital currencies even against all of this skepticism.
They have a cap
The first thing you need to know about the digital currencies is that most of them have a cap. The best way to describe this is the example of Bitcoin. In a lot of ways, Bitcoin is like gold, seeing as how you can’t just make it out of thin air (no matter how ironic this may sound for something generated through digital means). The top cap is 21 million Bitcoins and once this number is reached, miners will be turned away from blocks and be forced to earn either through transaction fees or any other way. What this means for an average person is that once the number is set to the maximum, the value of a single unit of any digital currency can only go one way – up.
The price is constantly on the rise
Another reason why you should give the thought of investing in a digital currency a shot is due to the fact that the price of bitcoin is constantly on the rise. While it is true that the value of Bitcoin went from $0.003 upon its launch in 2010 to $10.000 in November 2017 you have to put all of this into a much larger perspective. Unlike gold, USD or any other currency in the world, Bitcoin is only seven years old. Because of this, it would be safe to say that the currency itself is still in its formative period.
Additionally, with a couple of exceptions, its price just kept getting higher and higher. The heights it is reaching this year are simply absurd, seeing as how it increased in value tenfold this year alone.
Asset managers and family funds are investing
When in doubt, always try to find someone reputable enough and learn from their example. Sure, we live in the era of the internet, where anyone can write anything without any repercussion. However, when you see that some major-league asset managers and family funds are investing into digital currencies, it tells you all you need to know on the topic.
It’s not all about Bitcoin
At the end of the day, it is vital that we mention that there are a lot more digital currencies than just Bitcoin. The reason why this is so important to you as an investor is due to the fact that all of these currencies actually have digital properties you could benefit from. For instance, the LTC (Litecoin) is most commonly described as silver to Bitcoin’s gold, XRP (Ripple) is most widely used for low-cost international payments, while Dash is much more secretive and harder to track. Therefore, those willing to buy digital currency and wait for its price to skyrocket, have a lot of options to choose from.
These four reasons alone are more than enough for anyone to realize that digital currencies are here to stay and that they are definitely worth your investment. Moreover, there is an ever-growing number of industries that are embracing digital currencies as an accepted payment option, which means that the value of your investment might gain yet another dimension. With enough money, the right trading strategy and an adequate platform, trading digital currency might just be the right choice.
