Bitcoin, the initial cryptocurrency was invented to work in a decentralized manner and bring transparency to the existing economic system. Since its inception, it has experienced significant growth with regards to value and it led to the creation of a new asset class. It reached an all-time saturated in Dec 2017 when the price hit nearly $20000 and it is currently trading at $9950. Bitcoin has given an ROI of over 7252%. It’s consistently outperformed stocks, bonds, and real estate. Long-term purchasing cryptocurrencies is a new solution to diversify assets in your portfolio and earn substantial profits. While most new investors are wary of the downside of cryptocurrency investments as a result of high volatility, research will help you will find the most truly effective 5 reasons to buy cryptocurrencies.
Cryptocurrencies would be the top-performing asset class
With an ROI of over 7252% since launch, Bitcoin has outperformed the returns on investment in other major financial assets. In 2010 cryptocurrency as well cryptocurrency is outperforming traditional stock market and commodities including oil and gold. Therefore, Bitcoin has offered to its investor’s much higher returns than any asset class. It is believed that Bitcoin is about to set a new parabolic growth cycle for the following five years. Cryptocurrency investments have the potential to give comfortable returns in the future.
Cryptocurrencies are an undervalued asset
Value of cryptocurrencies is underestimated at the moment. Current market capitalization reaches $271 Billion. Gold has a capitalization of $7 Trillion and stocks are over $30 trillion. Experts have predicted that market capitalization will hit $5 Trillion by 2024. This makes cryptocurrencies a great investment chance for yielding high returns.
Blockchain Technology is the most recent innovation
Blockchain tech has established itself as a technology of the future. Because decentralization, adaptability and scalable technology, it has been adopted in almost every industry and brought into existence digital assets and smart contracts. Blockchain lies at the core of the cryptocurrency trading platform payment network. Any emerging technology in the Gartner cycle has the promise to grow. This growth is sure to unlock the potential of cryptocurrencies.
Adoption of cryptocurrencies is seeing a rapid increase
Digital currency exchanges are enabling borderless transactions between people without the need for any third party and to steadfastly keep up a higher level of privacy. It’s caused it to be possible to make use of cryptocurrencies for daily transactions like any form of the digital payment system.
Cryptocurrencies increase in value
The rise of Bitcoin’s price was the greatest and the fastest that any asset or investment class has ever witnessed. Bitcoin has helped early investors make over 7000% in profits and the mechanism of halving has caused it to be possible to book high profits in short periods of time. The following halving is coming up in a few months and Bitcoin’s circulation could decrease by around 50% every 4 years.
Cryptocurrencies are promising investment option due to superior underlying technology and possibility of growth. And it is obviously a great time to buy. It is advised that you assess your risk appetite and only invest that which you are willing to get rid of as high returns come with high risk.Read More