Can cryptocurrency be classified as an investment?
Now that cryptocurrency has started gaining recognition from the public’s eye, people have become a lot more interested in signing up and switching their traditional wallets into a digital version. Cryptocurrency has been stirring up debates about whether or not it is dangerous or worth taking part in. Recent events like Tesla’s involvement and withdrawal from bitcoin as one of their payment options have caused a huge impact on how cryptocurrency is taken by society. Cryptocurrency’s market decline after Elon Musk’s tweet has caused the active users to suffer.
But you shouldn’t worry as much because many are starting to trust cryptocurrency as their form of payment, opening the door to cryptocurrency as the very prime global currency. This evidently does not leave the gambling industry behind. Online bettings have started accepting bitcoin as one of their payment options which led to more beneficial outcomes like how charges for depositing and withdrawal are smaller than with traditional payments. It also saves you from the trouble of having to provide detailed personal information online. Those who live in countries that forbid gambling are also given a higher chance to be able to play because the regular regulations does not cover gamblings with cryptocurrency and is only fining those who gamble with literal money. This makes tiny investments in online betting possible with crypto sports betting.
Bitcoin is the first cryptocurrency invented in 2009 and has since then become the initiator to similar effective methods of payment. If we think about what cryptocurrency could do in the future, although it is still too early and blurry to imagine, it can really help countries with weakening currencies to recover and have human elevate transaction activities to be more advanced and cheaper. Of course, like what we’re experiencing at the moment, obstacles and doubts are going to happen while the system and condition is still considerably unstable.
Cryptocurrency is a digital currency that stores value in a blockchain network. They function as the replacement to traditional money. The difference between traditional money and cryptocurrency lies in the commotion of the transaction process and the convenience of transferring. Aside from being a form of convenient payment, many are starting to invest deeply in cryptocurrency. This way, we acknowledge that a lot of people are treating and associating cryptocurrency with stocks even when they are entirely different and unrelated. Cryptocurrency is expected to replace traditional money soon enough, but is only currently available as a store value that you can buy and sell. On the other side, stocks are sold by companies to those who wish to hold equity and take ownership of the company.
Similarly, both stocks and crypto’s value can shift and collapse. Which means, both hold risks that can affect shareholders and investors. Stocks are however somewhat “safer” than crypto for having to publicly and consistently announce their condition and future plans, making stakeholders aware of the possibilities they can enjoy and suffer from and have full ability to make a decision. Crypto is well known to have swiftly drastic turbulence occurring quickly. In terms of how they are governed, stocks are handled under federal agencies that authorize the entire market to protect fair trade unlike crypto which is governed directly by those involved and maintaining its growing technology. Crypto is also available 24/7 while stocks are only available on working days.
It’s so easy to get exceptionally rich with cryptocurrency. But realize that easy money is almost as easy to lose too. Try to not get easily excited with a sudden increase of value but instead realize that this could possibly be temporary. Remember to still play at your own risks. Crypto is a good option of investment for those who want involvement and exposure to cryptocurrency. However, the biggest issue that lies with crypto is its security quality. There are many scams and frauds crypto exchanges projects that can really inflict grievous financial loss to “prospective” investors. The technology is still highly inclined to criminality, making it even more riskier to engage with. Simply, when you are promised high returns from these hypesters, run. Do not even think of it. It wouldn’t make investing in crypto a fun and safe experience anymore.
With many considering the currency as valuable as fiat currency, because bitcoin can only supply 21 million coins, people are starting to invest in crypto just like how they invest in gold. If cryptocurrency fulfilled its imagined purpose as the very prime global currency, then the people who have heavily invested in crypto will undoubtedly be “rewarded” in the future. Crypto evidently has a higher risk of failing because, again, if influential people like the government decide that cryptocurrency is a threat, the regulators could literally shut down the whole system.