The future of investing: cryptocurrency

The future of investing: cryptocurrency

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Cryptocurrency is digital currency created and managed via the use of advanced encryption technologies known as cryptography. It made a huge leap from being a virtual academic concept when Bitcoin came into being in 2009. Bitcoin has gained quite the following in recent years and since then many cryptocurrencies have followed suit, and now there are so many cryptocurrencies available out there. 

People love investing in cryptocurrency nowadays, it is nearly as popular as stocks and bonds trading. Cryptocurrencies are usually purchased on cryptocurrency exchanges, you can check bitcoin IRA companies for more information on this. 

What we really want to know is if it is possible that cryptocurrency trading and investing is going to become even more popular in the future. It has been said by some people who specialize in cryptocurrencies and investing that it is possible we will see even greater growth in this area in the future, and it is even possible that we will see cryptocurrencies become a legitimate and regular mainstream currency. 

What does the future hold for cryptocurrency? 

Some economic analysts have been predicting big changes in cryptocurrency as institutional money has entered the market, we have already seen some of this, and it is projected to see even more growth. Even just looking at how the pandemic had an impact on the crypto market shows us just how popular it is becoming, and how integrated into our lives this form of currency is becoming. 

Bitcoin had a surge over the last few years and more people were investing in it. Yet, we still have to ponder whether it has yet more growth to be seen, and if it is possible that cryptocurrencies will one day be as standard as the money in our wallets and on our credit cards. 

What should we expect after 2021? 

Cryptocurrency has become a global phenomenon in the recent decade, and although there is still much for us to learn about this technology. There are many worries swirling about in thoughts of its capacity to disrupt traditional financial systems. While some are excited at the prospect of it becoming more of a mainstream currency, others are not so excited and have more concern about what this could mean for us. 

It is no secret that 2021 has been a big year for cryptos. We saw Bitcoin hit multiple all-time high prices, and regulatory talks that had potential to have a big impact on the industry, as well as more on an institutional buy-in for major companies and corporations. 

While people’s interest in cryptocurrency skyrocketed, it became a hot topic among all investors in every area, but not only this. It also became a hot topic in popular culture too, thanks to famous people, and long-standing investors such as Elon Musk who bigged up Dogecoin on his Twitter. 

2021 became a breakthrough for the cryptocurrency world, and cryptocurrency exchanges such as ‘Gemini’ have seen this and are excited by what this may bring. They have noticed a tremendous focus and attention being paid to the industry of cryptos. 

Exchanges and investors alike seem to have a very positive view of what the future of cryptocurrency looks like, however, it is yet to be seen. We all know that cryptocurrency is volatile, and it can fall as fast as it can rise. Not to mention how short the human attention span is these days with the speedy and sporadic ways of modern life and the internet have influenced us. Will we stay focused on the world of cryptos thus leading to more growth, more investing, and an increase in the usage of cryptocurrency, or will we simply lose interest and move onto the next best thing we find? 

We won’t know until it happens, but there is a lot of positivity circulating around about the future of cryptos. But, after the year cryptocurrency has had, we are not surprised there is so much positivity about it. The increase of interest, inflation in investing, and growth, it is hard to not feel like there is more positive impact to be seen on the horizon. 

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Gold Vs Cryptos in investing 

The economy has its eye on cryptos in another way, though. Gold has long been something that many have invested in for years. It has been a very sought after feature of our world, however, those looking at the economics of our world are wondering if it is possible that cryptos will take over from gold in terms of investment. 

An example of this is how during recessions, a typical course is to use gold as a hedge against any volatility in the stock market. Yet, a new approach is starting to change this strategy, and it has been proven to be very effective. What is it? Bitcoin. With many exchanges simplifying cryptos, Bitcoin has gained traction among retail investors, and it would seem that it is now slipping into this area, and it could even replace gold as that anti-stock market volatility hedge. 

Bitcoin is the dominant cryptocurrency, and it possesses many characteristics of general currency, as well as much that make it a viable shelter. Yet it is up to individual investors to decide if Bitcoin is a valid safe haven during times of stock market upheaval. 

What is the future outlook of Bitcoin? 

This sparks thoughts about the future of cryptos such as Bitcoin. We focus on Bitcoin as it is the dominant crypto of course, but this does not mean other cryptocurrencies cannot reach the same heights. 

It is very possible that cryptocurrencies such as Bitcoin could explode in terms of total market capitalization over the next five years. There is less worry about the volatility of the asset, however, many would say it is not wise to view Bitcoin as digital gold as it is more likely that its long-term value would be closer to $100 than $100,000. 

Yet we have to think about its massive growth. So if we look back at the end of 2016 one Bitcoin was worth only $788 US, In the beginning of 2018 it hit $17,000, then dropped again in late 2018 to $3,700. However, as the pandemic hit, growth skyrocketed, in July 2020 Bitcoin was worth $9,696, by April 2021 it hit $60,000 and has stayed around that $60,000 mark, aside from when it dropped in June 2021 to $32,000. 

This obviously shows the fluctuation of Bitcoin, however, it also shows its substantial growth over the course of time, and we can only project good things for it. Yet, it is possible that as it gains even more popularity, and more Bitcoins are released, that it could level out and drop in worth. 

Investing in cryptos: Potentially a mainstream currency

It is totally possible that cryptos could become a mainstream currency, however, this does not mean investing is right for you. Whether investing in Bitcoin and other cryptos is a good move totally depends on you. 

You should recognize that if you invest in a cryptocurrency that you could be running the risk of losing more of your investment. There is no intrinsic value apart from what a buyer is willing to pay for it at any point in time. It is susceptible to be very volatile, and it is very possible that it is this volatility that has kept people from investing in it so heavily, especially in its early days. 

Might it become a mainstream way of paying? Possibly, but we cannot say for sure what the future holds for cryptocurrency. 

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