It’s an obvious question, right!! Most people are pecking over this “Are Cryptocurrency worth investing?” “Should we expect growth through Cryptocurrency?”
What is Cryptocurrency?
As of now, it’s none but a currency of rich trade. You might be expecting, some blah blah answers about the codes involved or digital currency. Well, this content isn’t going to be about the same frequently toasted cryptocurrency concept nor a over buttered toast.
Most of you know, How trade really works? In pre historic era, the first source of currency were none but a trade exchange, where people exchange products in terms of currency to purchase something. However, as the time evolved, the first man made currency were shekel (coin), then it evolved to paper, plastic etc..
So, this evolving is what made the currencies valuable. I hope you understand my point here.
Is Cryptocurrency Evolving?
Most certainly not, none of the countries have truly acknowledged cryptocurrency or created mandates to make cryptocurrency means of trade or investment (but you get taxed though LOL). Countries use currency to create trade funnel with other countries, like how most countries have US dollar, Euro, Ruble and Yen as their reserve or gold as their reserve and these reserves are used to define the economic stability of the country. (well you can print more currencies. However, more currencies in the market means RIP to Economy, as well as higher denominations will lower the currency value). Have you ever heard, Countries using cryptocurrency as reserve to trade with other country!!!
Although, there are numerous cryptocurrencies which gained momentum just because Bitcoin was wreaking havoc in the trade market.
Where the most richest used it as per their best means to protect their wealth and using blockchain method to have a secure transfer, where the middle and poor class used it as an investment.
That isn’t How currencies evolve? the currency evolves when the government acknowledges it as currency, where middle and poor class people start to use it as their means of purchase. Wealthiest can be just 0.10% of world’s entire population, but the middle and poor class people are the 99.90% throughout the world. Think About It.
Is Cryptocurrency worth investing?
Yes indeed, but do you know which cryptocurrency which will be used as means of purchase in the VR or Metaverse or future maybe. Most of us don’t even have slightest idea, but we’re investing in it just because it grows and grows.
Like how we dump our hard earned cash in the share market once we see some gains in it. There is an article in The New York times which speaks about the crash in cryptocurrency and they have named it as “perfect storm” (storms always take the roof off)
Why should you rethink before investing?
There are two odds, cryptocurrency may become formidable currency in future or may not. However, just consider this example, Which country would allow cryptocurrency to be used as a reserve or investment? Will US create their own dollar cryptocurrency to use it as a reserve.
The true value of cryptocurrency starts, only if countries start to acknowledge cryptocurrency as a trade currency, because so far some countries have started to tax it as an asset (like you’re owning a stock and paying tax for it). If cryptocurrency is acknowledged by a country, government would take responsibility in handling cryptocurrency and creating stability.
Until then, you’re just investing in a “Stock Market”, where no one takes responsibility and you are just ripped off your wealth when it crashes (where defaulters would be sailing in yacht near Maldives)
Best Advice: As of now, it’s best to invest in Gold.