The cryptocurrency market has experienced some exponential growth and innovation over the years, its value increase has also been remarkable. When Bitcoin (BTC) was first introduced globally in 2009 by Satoshi Nakamoto it cost next to nothing, today it’s valued at almost $70, 000 for just 1BTC. Cryptocurrency is a very volatile market, but it has a lot of potential and compelling attributes that can make it a worthy investment.
When choosing what crypto to buy now, you have to consider the contributing factors that make cryptocurrencies the best option to invest in and look at the broader picture. Michael Graw puts a weight of around 25% on market performance, with utility, community, and development team also playing important roles. Whether you’re investing in cryptocurrency, gold, or live stocks, each investment must be treated with caution, so you need to conduct thorough research. It doesn’t matter if you’re a beginner or have been dealing with investments for years, you need to always look at the bigger picture. Here are the main factors to consider when investing in crypto in 2024:
Maturing Market
The cryptocurrency market has come a long way since its inception. With each passing year, cryptocurrency is growing and attracting institutional investors and regulatory oversight. The growth rate of digital currency gives it a certain level of maturity that offers stability and legitimacy to the market, making it a more attractive investment option.
Increasing Adoption
Cryptocurrency adoption continues to expand across various sectors, including finance, technology, and retail. Some major companies are looking at new ways to be innovative by integrating cryptocurrencies into their business models, some governments are also exploring digital currencies. This widespread adoption indicates a growing acceptance of cryptocurrencies as a legitimate asset class.
Technological Advancements
Blockchain technology, the backbone of cryptocurrencies, continues to evolve and improve. Advancements such as faster transaction speeds, increased scalability, and enhanced security make cryptocurrencies more efficient and practical for everyday use. These technological improvements contribute to the long-term viability of cryptocurrencies as an investment.
Diversification
Cryptocurrencies offer investors an opportunity to diversify their investment portfolios. Unlike traditional assets like stocks and bonds, cryptocurrencies have a low correlation with other asset classes, meaning they can provide a hedge against market volatility and economic uncertainty.
Inflation Hedge
With central banks around the world implementing expansive monetary policies, concerns about inflation are on the rise. Cryptocurrencies, particularly Bitcoin, are often seen as a hedge against inflation due to their limited supply and decentralized nature. As the rise of inflation puts pressure on our economy, investors may turn to cryptocurrencies to preserve the value of their assets.
Potential for High Returns
While investing in cryptocurrencies carries inherent risks, it also offers the potential for high returns. Because of the volatility of the market, crypto prices tend to fluctuate dramatically and at some points it happens in a short period, presenting opportunities for investors to capitalize on price movements and generate substantial profits.
Democratization of Finance
At the rate cryptocurrencies have grown over the years, it presents the potential to democratize the financial sector. Digital currency is giving individuals who are often underserved and excluded by the traditional banking systems access to financial services they have been denied for years. As we see the global economy becoming more digitized, we can only look at cryptocurrencies as the leading act in helping our financial sector promote financial inclusion and empowerment to those who have been denied for so many years.
So, to answer the question, it is worth it to invest in cryptocurrency? Investing in cryptocurrency in 2024 offers numerous advantages, including a maturing market, increasing adoption, technological advancements, diversification benefits, inflation hedging, potential for high returns, and the democratization of finance. Remember that cryptocurrency markets are highly volatile and subject to rapid changes, so thorough research and caution are always advised before making any investment decisions.
