Cryptocurrency is going mainstream, the first open source bitcoin client was released on 9 January 2009. It was not controversial from the get-go. It started its journey in relative obscurity, no one knew about Bitcoin outside techies and very hard-core geeks. Nobody in the finance world or investment world thought of it as something that would go on to become such a phenomenon in the world. It was just a die-hard geek’s dream currency that was going to create a dream world for them. No one had any clue outside those communities how to invest in bitcoin.
More than 12 years have passed since then bitcoin is now worth $45,000 each, which makes it one of the biggest assets in terms of market cap as well. It ushered in the world of cryptos, now a darling of finance professionals who now have put a lot of money into it as well. Crypto has emerged as an asset class with very high growth and a lot of people have started investing in it, just because it has crushed every other asset’s year-on-year growth with insane numbers. Crypto investing has become a real deal with billions of dollars of industry and infrastructure built around just that.
Bitcoin is really shaping the investing world as well as the lives of many people who have invested in it and gained a lot of returns. The same is the case with the crypto market, a market that didn’t exist just a few years ago is now worth more than $2 trillion. Cryptocurrencies have made a few billionaires but a lot of millionaires in their ascend to the status it has achieved today. It is one of the only asset classes in the world that has had this massive and explosive growth in a short amount of time. Nothing can compare to the returns cryptocurrency has provided over the years to its investors. Just think about it, a $100 investment in bitcoin in 2010 would have made you a billionaire forty-five times over right now. If you had invested in ETH in 2016 just $100 your investment would have been in the high $100,000 range. No, investment in the world has been able to generate a return like this for anyone ever.
Coming to the main question, should you invest?
I mean if you like having great returns on your investment you should. If you want to just sit while your money makes you more money, you should. However, if you are the kind of person who does not have the patience to invest long term and is risk-averse you shouldn’t. Because it is very evident from crypto trends that the market always gives returns in the long term, and in the short term there’s a lot of volatility in the market which scares a lot of people.
Tran Thi Nhu Quynh