What is the big deal about cryptocurrency?
By Contributing Author
Trading cryptocurrency is a new thing, at least relative to trading stocks. So why should you even pay attention to crypto news, and pay attention to that space? There are a couple of reasons why you should pay attention if you are interested in investments and such. First and foremost the explosive growth the market has seen lately is interesting in and of itself, so that already a good reason to pay attention. Exactly the fact that there has been a lot of growth and mainstream acceptance of cryptocurrency as a way of investment, is important.
Big companies are starting to invest in crypto, especially Bitcoin, which is by far the most well known cryptocurrency. The biggest company to make a sizable investment is Tesla, which made a $1.5 billion investment to hold on its balance sheet. They will also at some point soon begin letting their pay for cars, with the currency. In the wake of that investment there are already other companies, such as Twitter, that have been rumoured to be on the verge of making a big investment into bitcoin and the crypto market as a whole.
What does that all matter?
The thing about the crypto market is that it has been very volatile and has been quite difficult to figure out. The acceptance in the mainstream as an investment and a currency will greatly help with that. Big investments and well-known and renowned companies investing, will help stabilize the market somewhat. Banks have also started to look into the market, with some banks allegedly making investments and starting to trade in the cryptomarket. All this is obviously no guarantee that it’s a safe investment, to put money in crypto. But it is very interesting and important for the future security of the crypto market and investments in it. Something that goes along to make it less volatile.
Companies are also beginning to start their own cryptocurrencies. Facebook is bound to launch its own cryptocurrency and a virtual wallet. Their goal with these things is to provide safe and affordable access to financial services to people everywhere. This could provide a lot of people with financial services, who do not have access to banking otherwise for one reason or the other. Walmart also has plans to launch a currency, which would be linked to the dollar, but that would make transactions a lot faster. So the coin Walmart would launch is for convenience and possibly to make the money themselves, that would otherwise go to banks, in the form of various fees.
Crypto as a safe investment
The mentioned developments in the crypto space, will probably be a part of making the crypto market less volatile and a safer investment in general. But even with the market seemingly going more mainstream and being safer, there are experts arguing both for and against investing in crypto. While there is clear potential for a big payday, with everything seemingly only going up, if you put in the time. But the volatility is still a big factor and a risk.
Crypto is just still one of the most volatile assets to own in the world. Rule changes around the crypto market, in regards to taxation and regulation, are still developing and being implemented around the world, so the legality of different things can change. Hacking have also been a problem, and attacks will continue to happen. On the other hand, the crypto market is decentralized and will therefore not be affected by something like inflation and other economic issues that affect other assets. That also means it is faster because it does not go through banks In conclusion you really have to make your own conclusion about cryptocurrency. Is it for you or not? Does the pros outweigh the cons? Whether you lean one way or the other, you should do your research before making a decision.