5 Reasons You Should Invest In Cryptocurrency Now
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Cryptocurrencies have grown in popularity despite the global pandemic and the subsequent lockdowns. Even though the nascent industry has attained a trillion-dollar valuation, many people are still skeptical about investing in space. If you are in this clique, we will highlight five reasons why we think you should invest in cryptocurrencies now.
1. Cryptocurrencies Are Seeing More Adoption Daily
Cryptocurrencies have endeared themselves to the global investing public. That’s one major reason to invest in cryptocurrencies now.
The top digital asset Bitcoin launched when investors were gradually losing faith in the current financial system after undergoing yet another depression in 2008. With the government bailing out moribund banks, Satoshi Nakamoto created Bitcoin as a means to enable anyone to determine their financial wellbeing without the imposition of a third party.
A snapshot of the internet’s growth rate.
Bitcoin is in its “late 1990s” phase, somewhere past 2% adoption, ~200M users.
It took the internet 7 years from there to pass a billion users. BTC adoption on track to be much faster.
We’re hitting a billion users by the end of 2025. pic.twitter.com/4MT7WOIrUE
— Alex Gladstein 🌋 (@gladstein) July 12, 2021
Fiat currencies have also lost most of their value, with inflation figures posting double digits year-on-year (YoY). This twin instance, coupled with slow transmission time, worked in crypto’s favor. However, cryptocurrencies were still disregarded until 2017, when Bitcoin surged to $20,000.
2020 came with several companies piling up BTC in their treasuries. One of the most well-known is enterprise software firm MicroStrategy which reportedly has over 100K BTC. This astounding success moved the nascent industry from the fringe of the financial markets to the focus of the world.
Others picked up the cue, and institutional investment propelled the crypto market to $2.5 trillion in May. Even though this valuation has since dropped, crypto is seeing more adoption by the day. At press time, more than 15,000 businesses accept Bitcoin globally.
This data breaks down the organizations hodling cryptocurrencies like Bitcoin.
816,379 BTCs are held by exchange-traded funds (ETFs), while 215,146 BTCs are in the custody of public companies. Private companies are not also left behind as over 174,000 BTCs are held by privately-run businesses.
New all time high for #bitcoin whale addresses. The big money is buying $btc! Companies, millionaires, billionaires, and funds are piling in! Keep stacking those sats! pic.twitter.com/a0m1aUzffE
— Lark Davis (@TheCryptoLark) August 25, 2020
Countries are not left behind in the roundup, with 259,870 BTCs held globally. Aside from this, a growing number of world governments are looking at using Bitcoin as a legal tender, with El Salvador leading the charge. Other cryptocurrencies have also received commensurate adoption following a booming crypto sector.
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2. Future Growth Potential
Early crypto adopters can confidently tell you that cryptocurrencies have a high return on investment (ROI). This is quite evident by the number of people that joined the crypto bandwagon when BTC spiked to $50,000 in a bid to increase their returns.
The traditional financial system has posted low ROIs, and many banks pay almost 0% interest in savings. This, coupled with the crippling inflation figures, has seen many people search for another way to create wealth.
Not buying Bitcoin is an expensive mistake.
10 yr return
S&P: 225%
Bitcoin: 232,754% pic.twitter.com/B5ZqbdZx8n— Dan Held (@danheld) July 22, 2021
You should invest in cryptocurrencies now due to their past results. They have generated exponential growth this year alone. Bitcoin grew to a record $65,000 from $30,000 mark in 2021.
The second most valuable cryptocurrency, Ether, has grown 500% in the last six months and surged to an all-time high (ATH) of $4,350. Even meme-based token Dogecoin rose 15,000%, and Shiba Inu surged 21,000% in one week.
Even though the crypto market has seen half of its value shaved off due to the market downturn, market analysts are bullish about their long-term growth potential.
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3. Blockchain Tech Is Here For The Long Haul
Distributed ledger technology (or blockchain) was initially meant to facilitate value transfer in a trustless manner. However, its use has since evolved and has become widely used in several sectors.
Per data from Deloitte, enterprise use cases in blockchain had been rising steadily since 2019. The survey was published in 2020. Per Deloitte research, 83% of respondents believe they could lose their competitive edge if they fail to adopt blockchain.
The fact that Ethiopia will use #Cardano for building national financial infrastructure is about discussions with representatives of the state. The adoption of blockchain on the national level will always be about deals between real people. pic.twitter.com/1pT5TOiV7M
— Cardanians.io (🥩 stake with us 👉 CRDNS 🏊) (@Cardanians_io) April 24, 2021
This figure was up from 77% in 2019. While an insane 88% of respondents believe the tech would become highly scalable and go mainstream soon. Countries are also jumping on the blockchain train. Nations like Ethiopia are working with networks like Cardano to revamp their identity system.
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4. Swift Remittances
Besides speculative reasons, you might want to invest in cryptocurrencies now for their use cases in cross-border payments. Cryptocurrencies like Ripple’s XRP enable the swift and effortless transfer of value without waiting on any bank to clear transactions. This has also aided cross-border payment in the international market.
The 2020 Top Cross-Border Payments 100. Ripple in a DLT/Crypto category all its own. Why? #XRP of course. Can't wait to show everyone today what's happening in Asia with *cross-border mobile payments* using Ripplenet Technology with investments by 35 banks and a fresh $20M. pic.twitter.com/nlCR941L1t
— CryptoEri 125K+ Followers (beware of imposters) (@sentosumosaba) April 4, 2020
With a smartphone, an internet connection, anyone can send funds to their loved ones in minutes. This takes away the stress of queuing at the bank to conduct transactions or waiting days to receive cross-border payments.
Cryptos have democratized the system and opened up the financial system to people who were previously disenfranchised by legacy institutions.
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5. You Do Not Want To ‘Miss Out’
Cryptocurrencies, much like the internet, are changing the way we do business. Financial institutions and governments are gradually coming to grasp this reality.
This could be a great point to invest in cryptocurrencies even though you do not have a million dollars in your account, as many of them are going for a bargain. Several of these digital assets remind us of the dot-com buzz that birthed the likes of Google, Amazon, and Apple. Imagine investing $1000 in each of the companies when they initially launched.
That same feeling is what cryptocurrencies will feel like in the next couple of years. So, it is never too late to add cryptocurrencies to your portfolio, given their growing adoption.
67% of all retail investor accounts lose money when trading CFDs with this provider.
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