Introduction
The year 2020 has shown the full power of the digital industry amidst the COVID 19 pandemics. The most recent market analysis shows the drop of USD at its lowest rate in the last 32 months, dozens of low-cost airlines declared bankruptcy, while tourism and restaurant businesses are facing the verge of collapse as the “new normal” takes its toll.
It’s safe to assume that 2021 will be a turbulent year, which means it’s not going to be easy to predict a safe investment. However, in this article, we are going to let you in on five reasons why you should consider investing in Cryptocurrency.
Crypto value and trade is on a rise
Bitcoin reached a staggering value of $22k in December of 2020, and Ethereum also got higher than ever before at the same time. According to a Coindesk report, the value of the most popular blockchain currency will continue to grow based on the current market situation which shows that there are no major sales above the top market price. On the other side, there’s a thick wall of sell orders for $20k and lower.
Since the owners are not yet willing to sell their Bitcoins at the highest rate, it’s safe to assume that the price will rise even higher in the coming months, which makes cryptocurrency a great investment opportunity.
Digitalized market
Social distancing measures and global lockdown forced business owners to further digitize their operations. For most small businesses, it’s more affordable to go digital than to invest in additional equipment needed to comply with health preservation instructions. Consumers are also more willing to get their goods and services online than risking their health by going to a crowded store.
In an article published by Financialit, it’s shown that cryptocurrency payments are becoming more and more available in virtually every industry. Faster transactions, lower fees, and the higher security aspect are among the main reasons why people are turning towards crypto payments, and global brands are adapting to this trend.
Online gambling is shifting towards crypto
The online gambling industry is one of the largest cryptocurrency transactions arena, especially nowadays when going to a brick-and-mortar casino venue is all but impossible with so many of them closed and those who have reopened had to make considerable changes in terms of capacity and offer. Credit card payments are not the best option for online gambling, mainly because of high fees and slow transaction process. Besides, gambling is prohibited in many countries, so players prefer avoiding leaving any digital footprint.
Cryptocurrency gambling platforms provide anonymity, fast transactions, and low fees, all of which are advantages that high rollers, as well as recreational gamblers, are more than happy to take. As the gambling industry is not going anywhere soon, it would seem like a good idea to invest your funds in crypto.
Cryptocurrencies are independent
There’s an old saying that when a CEO of a large company sneezes the stocks go down. The same volatility principle goes for almost any asset on the market that’s tied to a company or a government. COVID 19 pandemic has caused turmoil across the world which made international trade challenging, to say the least. Since the year ahead of us is going to bring even more turbulence, one should look for a stable asset to invest in.
Cryptocurrency prices are not dictated by any institution, and there’s no public knowledge of any methods to rig the value of Bitcoin or any other blockchain currency. Therefore, the price of these types of assets are regulated internally, which means it’s affected by trade volume, the number of miners, the size of the award for each verified transaction, and the time it takes to mine a cryptocurrency.
Security aspects
As the global market moved online, cybercrime is flourishing according to most recent statistics. The threats are real for both desktop and mobile users, making every online transaction a risk. With cryptocurrency, you can rest assured that your funds are safe as you can store your assets offline or using some of many secured wallets. Furthermore, cryptocurrency transactions are safe and anonymous, which keeps your financial activities under the scope of anyone who would take advantage of it.
Conclusion
These were just a few of many reasons why the cryptocurrency market is an interesting investment playfield in the near future. However, the smartest investment is the one you can afford to lose, so don’t think of blockchain as a golden goose, stay informed, and keep the market situation closely to know where you stand.
