Is the Cryptocurrency Market a Good Investment Option?

To answer that question several points must be discussed. First, ask yourself: how many cryptocurrency will potentially survive in five to ten years? There are a lot of cryptocurrencies that were created, but haven’t been able to survive until now. However, things become extremely interesting when it comes to those surviving currencies.

In coinmarketcap.com there is an option that allows you to view historical snapshots under the “tools” tab. Pick a date that that will allow you to view a historical snapshot of the market one year ago, i.e. Sep. 06.

You will realize that there is a tremendous difference between the prices of cryptocurrencies on that day and their current prices. The top coins increased enormously. Now, let’s do a better test. Pick a coin that you haven’t either invested in or heard of in the Sep. 06 snapshot. However, make sure that that coin has been surviving until now. I personally picked Marscoin and BetaCoin. The prices of Marscoin and BetaCoin on Sep. 06 were $0.000524 and $0.000248. What is extremely interesting is that the prices of these coins now are $0.001792 $0.014592. What does that tell you? It tells you two things:

1. Invest in a cryptocurrency that you believe will survive. Simply, you can do this by investigating about the team and project behind it. More importantly,
2. The Cryptocurrency prices, in most cases, keep going up on the long-term. By a long-term investment plan, I refer to a period between 6 months and five years.

Second, let’s compare the cryptocurrency market with precious metals, real estates and the stock market.

Even though, it’s believed by many that Earth has limited supplies of precious metals, no one knows exactly how much. Of course the limited supply of precious metals raises environmental concerns (Staff, 2006). Some believe that silver is more limited than gold. Silver was more precious than gold in ancient Egypt. “Gold was considered to be the skin of the ancient Egyptian gods, but their bones were thought to be of silver (Dunn, 2013). On the other hand, Bitcoin and other cryptocurrencies have a limited supply of coins. No further coins can or will ever be created. Also, there is no need to worry about exploiting natural resources at all when it comes to cryptocurrencies, unlike fiat currencies. Added to the mentioned, the cryptocurrency market capitalization history shows more strength and upper trend than that of precious metals.

When it comes to real estates, they are a good investment option, but not everyone can invest in real estates. Poverty worldwide is on the rise. Furthermore, there is too much hassle in real estates (paperwork, council tax, bills, mortgage, etc). On the other hand, cryptocurrencies are available for all races, genders and social classes. And the only hassle people could face nowadays in the cypto space is understanding some technical knowledge and information, which I don’t mind. After all, knowledge is power.

I don’t think there is a need to give detailed information regarding the stock market, since that kind of information is widely available and was previously discussed many times. However, keep in mind that most stock investors celebrate and become so much happy after realizing a dream of 15% to 50% and 90% return on investment (ROI). On the hand, in the cryptocurrency market, investors could make easily a ROI of 100% to 500% a day and even 1000% to 2000% a year. Remember when OmiseGO was $0.50 two months ago? Yup. Now you understand what I mean.

OK, let’s discuss the SHTF apocalyptic scenario. when SHTF, cryptocurrencies and the blockchain technology could cease to exist, but at the same no one exactly knows if precious metals could be surviving up to that point. You never know, Coca-Cola bottle caps could be the main currency, like Fallout 4 the videogame.

In conclusion, the cryptocurrency market has been my best investment option. For the sake of argument, the cryptocurrency market is a great investment option, if not the best.

Thank you everyone for reading my article. Please note that I use the APA citation format. Please don’t forget to follow me and upvote. Leave a comment if you want to discuss anything. And don’t forget to subscribe to my youtube channel: https://www.youtube.com/channel/UCGbpdUQRDrOB4mKQBgRE-xA

Bibliography:

Dunn, J. (2013). Egypt: Silver in Ancient Egypt. Retrieved September 23, 2017, from Tour Egypt: http://www.touregypt.net/featurestories/silver.htm

Staff, L. S. (2006, January 19). Earth's Limited Supply of Metals Raises Concern. Retrieved September 23, 2017, from Live Science: https://www.livescience.com/556-earth-limited-supply-metals-raises-concern.html