Reasons to Invest In Crypto Market
There are many Reasons to Invest in Crypto but There is a growing perception that investing in cryptocurrencies is not a good option anymore as the price trends of many popular cryptocurrencies have been showing a sluggish performance as compared to their performance earlier. Though it is true that the value of major cryptocurrencies have decreased in the past few months, but it is wrong to believe that there are no more opportunities left in cryptocurrency investment. In this post, we will be looking at several Reasons to Invest in Crypto which will prove that there are a plethora of opportunities left in this market.
News and Cryptocurrency Investment
News stories play a significant role in changing the perception of people and this is true even when it comes to investments. “Bitcoin success stories” of overnight millionaires have played a significant role in channelizing many new investors towards altcoins. On the other hand, news stories related to cryptocurrency exchange hack and few ICO scams have compelled some people to rethink their investment strategy. Despite all kind of news stories related to cryptocurrencies, many new altcoins and cryptocurrency projects have continued to gather support and investment from people all across the world.
Young, Volatile and Growing Asset
one of the main Reasons to Invest in Crypto is that Since the entire cryptocurrency ecosystem is still new, hence it is normal that there will be apprehensions surrounding it. The main issue here is to make an educated decision by considering various factors related to it like timing, investment profile, utility of the particular altcoin, etc. Further, there are so many
altcoins out there due to which an investor can easily get confused on the right altcoins and investment strategy. In order to select and invest in altcoins, one must dedicate some time to learn the background and future potential of such altcoins to gain a better picture of the potential outcome.
Let us now take a look at the factors which reveal the reasons to invest in cryptocurrencies in 2019:
1-Growing Adoption of Blockchain
let me tell you something, one of the great Reasons to Invest in Crypto is the adoption of blockchain!
There are 100’s of altcoins out there but Bitcoin and its underlying technology “Blockchain” has gathered the most media attention. The blockchain technology is not only limited to altcoins, but it is gaining utility in many other sectors as it provides a more transparent and efficient structure. Many big agencies and institutions are learning and focusing on blockchain technology in order to revamp and enhance their potential. Further many new projects and platforms are being implemented and operated on blockchain technology which proves that the blockchain technology has gained a potential beyond cryptocurrencies too.
Investors always know the Reasons to Invest in Crypto!
The growing enthusiasm of investors in the cryptocurrency sector and the efficiency of blockchains in easing out many problems have led many giant corporations to enter the crypto space in order to bank on the growing demand of blockchain technology. Some of these big corporations include entities like JPMorgan, Intel, IBM, Bank of America, Microsoft, HSBC and Facebook which have set up a dedicated division for greater research and application of this technology. Further, companies like IBM and TCS have started to provide blockchain based solutions to start-ups and other big companies. IBM has geared up its blockchain innovation and has also partnered with several government agencies for blockchain based solutions.
Filing of patents related to blockchain technology grew by over 50% in the year 2018 as per the report of UN World Intellectual Property Organisation (WIPO) which proves that more and more companies are focusing towards blockchain technology. Of all these patent filings, companies in China and the United States were the key players.
It is also important to note that even though the value of cryptocurrencies keeps on fluctuating but the interest in the underlying blockchain technology has maintained a momentum of its own. After the bearish performance of crypto markets in the year 2018, investors shifted their attention and capital towards blockchain based start-ups due to which approximately $5 billion was invested in this sector which was a staggering jump from the $1 billion investment in the year 2017.
A report by Global Market Insights predicts the global blockchain market to cross 16 billion USD by 2024. The reason for this expected growth is attributed to growing interest from investment firms and venture capitalists. Additionally, the Asian-Pacific blockchain market is expected to witness a CAGR growth of over 87% from 2018 to 2024.
Still want to know the Reasons to Invest in Crypto? You don’t want to miss the next part!
2-Growing Cryptocurrency Regulations
Generally, institutional investors have shown little interest in cryptocurrencies earlier and the reason for this was attributed to the lack of regulations in this sector. However, the cryptocurrency ecosystem is maturing with time and regulations are laid out by cryptocurrency exchanges and government bodies which is helping to build more trust in this sector. The introduction of regulations will help to reduce the uncertainty level which will, in turn, boost the crypto economy. Further, the number of ICO scams has decreased considerably and today there are millions of investors in cryptocurrencies.
Even though there is no uniformity in the approach towards cryptocurrencies in different jurisdictions, but different countries have started noticing the growing significance of cryptocurrencies. The Securities and Exchange Commission of United States labels cryptocurrency as security and has earlier expressed its intentions to scrutinize and apply security laws to cryptocurrency exchanges and firms dealing with cryptocurrency related services. It has also started focusing on initial coin offerings (ICO’s) and token sales which show that the US crypto market is ready to witness greater cryptocurrency regulation in the future.
“While there are many countries which are yet to recognize the growing scope of cryptocurrencies, a common thing which can be noticed in some countries is the government-issued notices related to cryptocurrency investments.
Most of these notices are issued by central banks of such countries and their motive is to educate the citizens about the difference between government-issued currencies and cryptocurrencies.
Some countries like Australia and Canada have taken a defensive step and enacted laws to bring cryptocurrency transactions and related institutions under greater security check. Some smaller countries including Nepal, Algeria and Vietnam have banned all activities related to cryptocurrencies. There are also countries like Spain, Luxemburg, Belarus and Cayman Islands which have adopted a much open and friendly approach towards cryptocurrencies and are building a cryptocurrency-friendly regulatory regime to attract greater investment in this sector. On the other hand, countries like Venezuela, Lithuania and Marshall Islands are seeking to go a step further to build their own system of cryptocurrencies.
Even though the cryptocurrency “Bitcoin” has dominated the crypto space and continues to remain the prominent player, there are many new alternatives which have not only become popular as an investment option but have also found utility in various sectors like gaming, finance, entertainment, etc. Many people continue to profit from investment in a diverse range of altcoins. Further, there are many platforms like cryptocurrency forums and discussion groups where people discuss and learn more about new cryptocurrencies and investment strategies. One can learn and analyze more about individual cryptocurrencies and can then make a diversified cryptocurrency investment portfolio to stay safe and profitable in crypto investing.
Plenty of opportunities
There are currently over 2000 cryptocurrencies which indicate that the entire cryptocurrency space is exuberant and there are plenty of opportunities apart from the traditional “Bitcoins”. The share of Bitcoins in the global crypto market has moved down to around 60% (from nearly 90% a few years ago) which indicates that people are investing in newer cryptocurrencies too. Further, Initial Coin Offerings (ICOs) of many new utility coins are also gaining interest from investors all across the world which shows that cryptocurrency space is expanding its realms. In the year 2017, over 2 Billion USD was raised from ICOs for various blockchain and cryptocurrency projects.
Some reputable institutions like JP Morgan, IMF and World Bank have laid out plans to launch their own cryptocurrencies which will further add a trust factor to the growing acceptance of cryptocurrencies. JP Morgan announced the launch of JPM Coin which will be the first cryptocurrency issued by an international bank while the World Bank and IMF jointly announced the launch of a quasi-cryptocurrency “Learning Coin”.
4-Ease of Investment, Conversion and Withdrawal
Investing in cryptocurrencies has become very simple due to cryptocurrency exchanges from where one can easily buy cryptocurrencies. There is much more information online on cryptocurrency investment than it was available a few years ago. There are plenty of video tutorials on YouTube which explain the basics of cryptocurrency investing. Converting one cryptocurrency to other and withdrawing it has also become simple. The popular cryptocurrency exchange “Coinbase” has over 10 million investors which show the growing acceptability of cryptocurrencies.
The top cryptocurrency exchanges are recording astonishing revenues which are even surpassing few of the big banks in Europe. In the year 2018, Coinbase revealed that it had a turnover of $1 billion in the year 2017 which indicates the growing aura of cryptocurrency trading. There are even cryptocurrency wallets which have a built-in feature of cryptocurrency exchange.
Apart from the growing ease of purchase and sale of cryptocurrencies, the number of cryptocurrency investors is going to increase significantly once the top names related to finance and share markets jump into the game. Some big and credible names like InterContinental Exchange (ICE) have already jumped into the cryptocurrency trading market.
The NYSE-operator, InterContinental Exchange (ICE) has already launched Bakkt, which aims to enable Bitcoin futures trading. Circle, the start-up backed up by Goldman Sachs has acquired Poloniex which is a U.S. based cryptocurrency exchange. Earlier, NASDAQ has also expressed its interest to open a cryptocurrency trading platform which indicates that the growing influence of cryptocurrencies.
5-Greater Adoption of Cryptocurrencies
The increase in the adoption of cryptocurrencies can be inferred from various parameters like growth in the number of investors, ICOs, cryptocurrency jobs, cryptocurrency consultancies, etc. The number of ICO’s has grown significantly in the past few years which indicate that cryptocurrencies have a strong potential for growth. Despite high volatility in the price of cryptocurrencies, there is a steady increase in the number of crypto investors. The growth in the number of crypto investment firms and consulting agencies also indicate that more people are looking to put funds in cryptocurrencies.
If we look at the labor market, we can find that blockchain-related jobs are one of the fastest growing jobs in recent times which show the growing exuberance of this sector. The popular freelance marketplace, Upwork also noted blockchain related jobs to be the fastest growing skill request on its platform.
If we pay attention to the growing adoption of ICOs, we can easily make out that ICOs with a good plan of action and backing have gathered high interest from investors. The Telegram ICO raised $1.8 billion while the Petro ICO issued by the government of Venezuela raised $5 billion in its presale.
6-Growing Number of Big Investors
Big investors have been slowly moving towards crypto investing and there is a tremendous amount of capital waiting to enter the cryptosystem. Once the big investors enter the crypto space, the price of cryptocurrencies will rise which will lead to big gains for people who have invested money earlier into cryptocurrencies. More clarity and increasing transparency in crypto space are attracting big investors which will eventually benefit all the people who have taken an early dive into cryptocurrencies.
There are various examples to prove that crypto assets and funds are increasingly becoming popular. In 2018, a report published by Morgan Stanley revealed that crypto assets under management are growing in number. On similar lines, Cryptofundresearch estimated that 220 crypto funds were created in the year 2018. Employees’ Retirement System and Virginia’s Police Officer’s Retirement System, the two public pensions from Fairfax County, have invested in Morgan Creek’s crypto fund. Even some of the big U.S. financial institutions like NASDAQ and Fidelity are strengthening their infrastructure to support cryptocurrencies which indicate that cryptocurrencies cannot be ignored for a long time now.
“Cryptocurrencies Cannot be Ignored for a Long Time Now”
Future of Cryptocurrency Market
After looking at the reasons to invest in crypto in 2019, let us look at some of the key cryptocurrencies to consider for investment. We will limit our focus on three most discussed cryptocurrencies namely Bitcoin, Ether and Ripple.
Future of Bitcoins
The first ever cryptocurrency “Bitcoin” launched in January 2009 saw a very slow growth during its initial days but has become the center of cryptocurrency related discussions after its massive growth in the year 2017. However, after the substantial fall in the value of Bitcoins after the peak period of December 2017 led some people to lose hope in Bitcoin investment. In order to examine the future of Bitcoins, we must pay attention to the following factors listed below:
Highest Rate of Adoption: One of The Important Reasons to Invest in Crypto
If we look at all the cryptocurrencies, we can clearly see that no other cryptocurrency has attained the level of adoption similar to Bitcoins. Many companies and institutions which have not yet adopted cryptocurrencies are increasingly learning and working on blockchain technology to improve their services. The increasing adoption of the blockchain technology will inevitably lead to the growth of Bitcoins in the future as Bitcoins being the first and most recognized cryptocurrency will have an upper hand in the acceptance rate.
Consistent Recovery Trends:
If we analyze past Bitcoin price crashes, we can very well see that Bitcoin has recovered from price crash several times though the recovery duration may be different. If we follow cryptocurrency news, we can find that there are many proposals being laid out time to time from some big names in the financial sector regarding Bitcoin funds and securities which indicate that it has left a dominant impression in the digital currency space. This lasting impression about Bitcoins will help in its consistent growth in the long run.
For any technology to stay relevant, it must cope up with the growing needs and aspirations of people. Bitcoin developers are consistently working to develop the Bitcoin network. Lightning network is one such feature which is adopted by the Bitcoin network to solve the scalability problem, especially for small payments.
Bitcoin Futures Trading Platform:
Intercontinental Exchange (ICE), the operator of New York Stock Exchange (NYSE), has launched a Bitcoin futures exchange “Bakkt” which will further boost the significance of Bitcoins once it gets a green signal from Commodity Futures Trading Commission (CFTC). It will also open gates for new Bitcoin-based securities which will add to the popularity of Bitcoins.
Since Bitcoin is the largest cryptocurrency, so its demand is also high. The number of Bitcoins left to be mined is decreasing with time which means that the value of Bitcoins will increase due to growing scarcity. Further, when the crypto market becomes bullish, the price of Bitcoins is almost sure to move up as a significant portion of investment in the crypto space flows to Bitcoins due to its advantage of being the most popular cryptocurrency. Many crypto fund managers also invest some part of their funds into Bitcoins as part of their diversification strategy.
Battle Against Government Control:
Governments all across the world are making efforts to decrease the use of cash payments in order to better evaluate the economic scene and to extract more tax. If we consider privacy concerns, then cash is an effective medium for this purpose. Harder attempts to minimize cash usage will inevitably force people to look for other ways which will lead to the demand of cryptocurrencies and especially Bitcoins as it is much more recognized.
Unstable Economic Conditions:
The value of fiat currencies are subject to many factors and due to unstable economic conditions in many parts of the world, there is always a fear of weakening of fiat currencies. The growing trade wars can cause further imbalance to the economy. The weaker the traditional economy gets, the more it will cause demand for other avenues of investment like cryptocurrencies and in such a situation Bitcoin will be the greatest beneficiary as it is the most highlighted cryptocurrency.
If we take the above factors into account, we can very well say that Bitcoins have got an inherent edge over other cryptocurrencies and hence one can consider Bitcoins in their cryptocurrency investment portfolio.
Another Reasons to Invest in Crypto : Bitcoin and Its Implication on Other Cryptocurrencies,
The growth of Bitcoins has a positive effect on the overall crypto space. Even though the price of the leading cryptocurrency “Bitcoin” has witnessed drastic fluctuations from $20,000 in December 2017 to around $3,000 in 2018 and then to about $6,000 in May 2019, the enthusiasm about ICO’s and crypto investing has never halted. If we look at medium to long-term prospects of cryptocurrencies, then we can realize a better picture of the real potential of cryptocurrencies. The market cap of Bitcoins and its growing acceptance as a payment medium for online goods and services prove that there is a big untapped potential for Bitcoins.
Future of Ethereum
Future of Ethereum
Among all the cryptocurrencies existing today, Ethereum is the second most valuable coin after Bitcoin. ethereum and it’s powerful blockchain and ROI generated are one the most important Reasons to Invest in Crypto. The company’s token, Ether, which was trading in single digits in January 2017 rose to over $1,000 in January 2018 which attracted the attention of many crypto investors. In order to predict the future of ETH, we must first look at the background and the utility of this cryptocurrency to get a better picture of its potential.
Ethereum which came into existence in the year 2015 offered some unique advantages which made it a popular cryptocurrency. Ethereum, created by Vitalik Buterin, became the first-ever blockchain project which used smart-contract technology using which people can directly enter into an agreement without using any other intermediary. Ethereum also allows developers to host decentralized applications (dApps) on its platform which enlarged the scope of Ethereum. These decentralized applications (dApps) function without any central controlling unit which makes them much more significant due to enhanced privacy and transparency which in turn boosts the utility of the Ethereum network.
The mechanism used for transactions in the Ethereum blockchain is called Proof-of-Work and the Ethereum blockchain provides the option to create new tokens which are mainly referred to as ERC-20 tokens. One of the major issues with this blockchain network which the Ethereum developers are looking to solve is its transaction speed which is currently limited to 15 transactions every second. The problem of scalability (transactions per second) became much more intense with the growth of this cryptocurrency. The main issue which can affect the value of this cryptocurrency in the future is its scalability because there are other blockchains which can process transactions at a higher speed.
For ETH investors, the good news is that the Ethereum developers are already working to make significant changes in the Ethereum blockchain to overcome the current bottlenecks. Let us look at the key factors which can prove to be a positive signal for the growth of Ethereum.
are looking to move from Proof-of-Work consensus mechanism to Proof-of-Stake which will bring more energy efficiency and will further minimize the risk of centralization. Nicknamed as the “Casper Project”, this transition will be one of the significant events for ETH.
The “Enterprise Ethereum Alliance”
is an extraordinary advantage for the Ethereum network. Enterprise Ethereum Alliance is aimed to connect start-ups, academics and fortune 500 companies with Ethereum experts in order to build and grow the smart contract supporting blockchain-ecosystem which will find its utility in handling complex and real-life applications effectively with speed and transparency. Many big corporations like Cisco, Intel, Microsoft and JPMorgan have already joined this alliance which implies greater stability and future for the Ethereum network.
The Ethereum team
is working on the “Plasma” project which will help to tackle Ethereum’s scalability problems. By using the Plasma protocol, the Ethereum blockchain will be able to free itself from unnecessary data processing by creating an additional layer on top of the main blockchain. By using this protocol, the transaction time will be enhanced and developers can host dApps on the Ethereum blockchain without slowing it.
Similar to the Plasma protocol
, “Sharding” will also solve the scalability issue which will further boost the significance of Ethereum. Sharding will allow nodes to independently work on different transactions which will significantly boost up the transaction speed.
By looking at the above factors, one can easily infer that the Ethereum network is not just limited to its cryptocurrency “Ether” but has grown to a mega infrastructure of its own. Together, the above-listed factors imply that Ethereum has a long term potential and therefore it is one of the key cryptocurrencies which can dominate the crypto market.
“Ethereum network is not just limited to its cryptocurrency “Ether” but has grown to a mega infrastructure of its own”
Future of Ripple:One of The Very First Reasons to Invest in Crypto
The cryptocurrency Ripple (XRP) is one of the most discussed cryptocurrencies when it comes to low priced altcoins. Ripple Labs, Inc. developed this cryptocurrency in order to ease out the payment system. Ripple was primarily focused at banks and payment providers. Ripple uses a unique consensus protocol known as Ripple Transaction Protocol (RTXP). Let us look at some of the key factors which are essential to recognize the scope and future of this cryptocurrency.
A) It is Regulated:
The cryptocurrency sphere faced a negative impression on some occasions when incidents like cryptocurrency scams and hacks occurred. Few banks and financial institutions across the world issued an advisory note to citizens in their jurisdiction regarding the absence of regulatory framework in cryptocurrencies. Further, one of the reasons for institutional investors being less interested in cryptos was attributed to lack of regulations. However, this is not the case with Ripple (XRP) because it is regulated. This is a major difference between Ripple and other cryptocurrencies which has assisted Ripple to partner with many banks and financial institutions who require strict regulatory compliance.
B) Low Cost and Fast Transactions:
With growing trade and businesses all over the world, one bottleneck in the banking and finance sector is the cross-border payment system which takes days to complete and also costs greater fees. XRP token-based payment system has structured a unique concept to cut down the cost and drastically enhance the transaction speed. The biggest factor which gives Ripple (XRP) an edge over the current international payment system employed by banks is its speed. A transaction using the Ripple platform takes just a few seconds to complete than the prevailing system which takes days.
C) Growing Partnerships:
One of the key factors determining the growth in the value of the cryptocurrency “Ripple” lies in its growing acceptance all over the world. Ripple has built partnerships with over 150 banks in order to promote and grow its platform. The partnering banks and financial institutions will be able to achieve near-instant transactions across the world at a low cost. Ripple has also tied up with some of the premier financial institutions like Bank of America, JPMorgan and American Express which shows its growing acceptability.
D) Unique Services:
Regular updates and upgrades to a product or service enhance its credibility and market value and this is true for Ripple too as it releases new enterprise services for its client base. Some of these services include
xRapid: It is aimed to provide on-demand liquidity to payment processors
xCurrent: It allows the integration of XRP with global payment processing
xVia: It allows the use of Ripple network (RippleNet) to send payments
The above services in association with Ripple Transaction Protocol (RTXP) provide an upper hand to the Ripple network over its competitors.
- E) The Team Behind Ripple: One of the key factors which is crucial in determining the potential of any cryptocurrency is the credibility of the people and institutions behind it. Ripple’s co-founders Chris Larsen and Jed McCaleb are reputable names in the digital currency world. Ripple was able to mobilize $55 million in venture capital in just one round which shows the clout and credibility of its founders and the trust on the action plan of the company. The companies backing Ripple include top names like Google and Lightspeed Venture.
Considering the above factors, we can well see that Ripple has opened a revolutionizing way for cross-border payments with speed and efficiency which makes it a key cryptocurrency to be considered for investment.
“There are many reasons to invest in crypto market. By investing in cryptocurrencies today, you are becoming a part of the technology which has the potential to change the world.If we look at the above factors, it becomes clear that there is a great opportunity in cryptocurrency investment and the future of cryptocurrency is bright.”