People could not talk about cryptocurrencies, NFTs, and blockchain enough in 2021. The industry grew to over $2 trillion value within the year. And more people began to show interest in the virtual coins. What started with Bitcoin is now a full-fledged industry that many people want to invest in. Ten years ago, Bitcoin was valued at $1 and now its value crossed $60,000 at maximum. By the current standards, we can expect crypto to take over the economy soon.
Imagine a world where you find Dogecoin in Spectrum billing option. You might even get your groceries using crypto and all transactions could become digital. A few years ago, this could only happen in science fiction movies. But it can be a reality with cryptocurrency. Now might be the best time to invest money in crypto. Because the market might be volatile but it has a lot of potential.
Why Should You Invest in Cryptocurrencies?
The question everyone is asking is whether they should invest in crypto or not. There is no guarantee that crypto is the right market for you. But if you never try, you’ll never know. In 2021 alone, the industry was up by 70% from the previous year. So, if we are to assume anything from the graph, it is that crypto will remain the next big thing in 2022.
Any successful businessman in the world would tell you that you have to take risks and chances in life. And if people like Elon Musk are taking interest in crypto, then it might have enough potential. So, if you like a little adventure in life, you should take a leap of faith. You don’t have to invest a lot of money and can even start with $500. The best part about crypto is that you decide how much money you want to invest in it. Moreover, you don’t have to buy a full coin and can even buy a part of it.
Another great advantage of cryptocurrency is the options you have. So, you can put your money in a coin but you can also upsell NFTs. Even the sheer number of coins in the market right now can give you enough options. Countless types of crypto coins can each have their own purpose. You can use some anywhere online. But others are specific for in-app purchases
What Are the Risks?
So, the biggest investment risk with crypto might be the volatile market. One day your coins could have value and the next day they wouldn’t be worth pennies. But the same volatility can go for you as well. Any coin and its value can jump up at any time. So, if you are someone who wants a stable economic status, crypto might not be your thing
Another risk factor could be potential black-listing by governments and central banks. Countries like China already have laws against crypto. But this might not be a bigger issue for long. The first US exchange-traded fund with Bitcoin has already been approved. So, things might take a turn for the better in 2022. As of now, many governments are still on the fence about crypto.
What Do the Experts Say?
Many experts believe that cryptocurrency is the next big thing. Market influencers like Elon Musk and Mark Zuckerberg have shown great interest in the field. Facebook recently announced the formation of a new parent company called Meta. Zuckerberg has also announced a digital world called the metaverse where most transactions could occur through crypto wallets. However, even one tweet from them can send the market into a frenzy. The recent episode with Dogecoin is also not something you can ignore if you are thinking to invest.
On the other hand, economists and experts have also condemned crypto. Some people think that crypto is socially wasteful and has no practical use. Moreover, minting cryptocurrencies uses a lot of electricity which can hurt the environment as well. If the whole world started minting coins, we would see an unprecedented change in the world’s electricity consumption.
Some experts also believe that crypto, especially Bitcoin, will tumble to a low value in the upcoming year. According to them, the value of Bitcoin only signifies speculation and a public craze. So, we might see a sharp decline in value as people get over the FOMO.
Crypto is a dark tunnel and no one really knows where it ends. Even economists and experts share different opinions about it. So, if you want to be on the safe side, it is not the best in terms of secure investment opportunities. However, if you still want to test the waters, you can start with a small amount. Moreover, people who want to invest should always be ready to experience market crashes and instability.