Kelly Robertson
Ever since we started writing about Bitcoin, Ethereum and other cryptocurrencies, we were asked: “should I buy cryptocurrencies.” And so we decided to answer it once and for all.
We think yes, but we do not want to provide an investment advice here, and you can read our disclaimer at the very end of this article. Also, instead of providing you with one answer, we give you 5 reasons to “push the button” and grab some cryptocurrencies. Here’s what we’ve got…
1. It’s new technology
That’s what makes cryptocurrencies cool. Bitcoin brought along the blockchain technology which is shaping to be the next big thing. Pretty much all major financial institutions are looking to take advantage of it, and the same goes for big consultancy firms, IT giants, and many other Fortune 500 companies. A number of startups is also looking to change the world using blockchain and digital assets.
In a not-that-distant future, all of our health records will be stored in blockchain. Why? Cause it’s more secure that way (actual data doesn’t have to be public) and the data could “travel” from one healthcare facility to the other when needed. Additionally, governments are looking to put blockchain to good use with decentralized ID services that would make lives easier for their citizens.
All this and more is made possible thanks to Bitcoin, and other cryptocurrencies that have been launched in the last few years.
2. These are volatile assets (which is good)
In contrast, a US Treasury Note is everything but volatile — it is a beacon of stability. But… what’s the return on it? That’s right – next to nothing.
It is true that digital assets such as Bitcoin and Ethereum are more volatile than pretty much any other (regular) asset, but they could potentially provide you with bigger returns. Just imagine how would it be if you bought bitcoins 2 years ago? Yes, we’re talking about serious gains here, and that’s why we love volatility.
3. It is a way to diversify your portfolio
Whether you’re saving for retirement or to make some big purchase in the future, you don’t want to rely solely on the interest a bank provides on your savings account. Simply put — that interest is too low.
That being said we have nothing against savings accounts; all of us at Wallet Weekly have one, but some of our money is also invested in mutual funds and cryptocurrencies. This way, we get a diversified portfolio that spans risk categories, from low to high. And so far, that plan worked for us with, obviously, our investments in crypt-assets (not just Bitcoin) delivering the highest returns.
4. You could win BIG!
But you can also lose it all… That’s how this things work, so make sure NOT to put all eggs in one basket. Instead, put only a part of the money in crypto-assets, and the rest in some safer instruments like blue chip stocks and index funds.
It is true that many people have experienced astronomically high returns on their purchases of Bitcoin, but that time could be behind us. Or not.
Even though Bitcoin is 8 years old, the entire cryptocurrency market is still in its infant stage, and it is just getting started. Also, you don’t have to invest in bitcoin — it is quite expensive at the moment — there are other cryptocurrencies out there that could deliver similar returns, percentage-wise. Which leads us to our final point…
5. Buyer’s remorse
Or FOMO – the Fear Of Missing Out.
You have probably heard about people who have turned their crypto-investments into small fortunes. And just like all of us, you can’t stand it. You want to take part in that as well.
This article is all about it, but we must add that buying cryptocurrency is an investment, and as such comes with a risk. The text above should not be considered an investment advice, and we expressly disclaim any liability, including in respect of direct, indirect or consequential loss or damage.
With that in mind, it is up to you to decide whether you want to join the crypt-party or watch it unfolding before your eyes.
