The cryptocurrency craze has appeared to be unstoppable until this point in time. Now the question is whether it is too late to invest in cryptocurrency.
Before getting started, should we first have an idea of what cryptocurrency actually is?
Cryptocurrency is digital money that is decentralized and backed by blockchain technology. It is meant to be used only through the Internet. It is an online payment system that can be used to buy and sell products and services. Many businesses and organizations, along with talented individuals, have created cryptocurrencies known as ICO. These cryptocurrencies can be traded and exchanged for goods and services. You can simply consider them to be arcade tokens or casino chips. To use the item or service, you’ll need to convert actual money for cryptocurrency. You can easily buy BNB or any other cryptocurrency and indulge in the cryptocurrency market.
The growth of cryptocurrencies is one of the reasons blockchain technology has become so well-known and continues to surge in value and popularity. When most people hear the term cryptocurrency, they immediately think of Bitcoin. This may not seem unusual given the fact that Bitcoin was the catalyst for the entire cryptocurrency phenomenon. However, Bitcoin is only one of the available currencies, and there is much more to this technology.
Why are cryptocurrencies so popular?
For a number of reasons, cryptocurrency has drawn the attention of people. Some of them are:
- Supporters see cryptocurrencies like Bitcoin, Ethereum and BNB as the money of the future, and they’re rushing to acquire them before they grow more valuable.
- Some proponents prefer the idea that Bitcoin sets free the central banks from controlling money supply because not only do central and traditional banks devalue money through the unjust process of inflation, but they are less secure and slow.
- Others believe that the blockchain technology that powers cryptocurrencies is preferable to traditional payment systems because it is much faster and more secure because of the blockchain and decentralized systems on the top of which cryptocurrencies are created.
- Some investors are interested in cryptocurrencies like Bitcoin, Ethereum, and BNB because their value is rising and they are not bothered by its mainstream acceptance as a means of payment.
The inevitable question, in the face of all of these great profits, is whether it’s too late to invest in cryptocurrencies.
The fact is that predicting whether a cryptocurrency will rise or fall from here is a quite difficult task since it is a brand-new industry that is neither well-defined nor well-regulated. However, there are compelling reasons on both sides of the debate about whether or not it is time to purchase.
According to Anton Altement, CEO of Polybius and OSOM Finance, “it is never too late to invest in Bitcoin, just as it is never too late to invest in gold.”
One of the biggest concerns about entering the cryptocurrency market has always been that governments throughout the world will ban the currency from being accepted or even produced. It’s possible that time has already passed. The Chinese government has begun cracking down hard on Bitcoin mining and trade in late May 2021, sending cryptocurrency values down. The fundamental reason for the crackdown, according to Boris Schlossberg, managing director of BK Asset Management, is that “Chinese authorities are determined to see their own digital currency in the shape of the yuan become the dominant unit of account in the Chinese economy.”
If you think that the cryptocurrency market is like the stock market, then it is always the right time to invest in cryptocurrencies like Bitcoin, which is now on sale. Bitcoin was back under $63,000 on Nov. 12 — closer to $62,000, in fact — and other cryptocurrencies had dropped by a comparable amount or more. Nowadays, Bitcoin is 10% lower than its all-time high; however, it is better than the value in September of under $40,000.
More lately, countries as diverse as Estonia, Iran, and Singapore have begun their own anti-corruption campaigns. If other countries follow suit, Bitcoin and other cryptocurrencies’ demand and support may plummet.
According to the skeptics of digital money, it belongs to an asset class with no store of value and does not even hold value as an exchange currency. As a result, doubters see cryptocurrency as merely speculative, with no long-term potential as a legitimate asset class. Jeff Schumacher, the founder of BCG Digital Ventures, thinks that though it is a wonderful technology, it is not actual money so it will plunge to zero as it is not founded on anything. However, with a market capitalization of $1 trillion, cryptocurrency has shown its worth and proved its point.
Yes, the price fluctuation causes difficulty in the value. Individuals will be more willing to spend and circulate Bitcoins today if they are worth a lot more in the future, making them far more valuable and viable as a currency. Why not put your money into cryptocurrencies now, when it may be worth three times as much next year?