Is Now the Right Time to Invest in Cryptocurrency?

Money, wealth, investment, stock markets — everyone wants in. But for many, the world of finance can be an indecipherable one. In 2008 something changed, however. Bitcoin was created, and with it, the world of cryptocurrency was willed into life.

But, what does it mean for the average Joe or Jane that knows little to nothing about finances and is afraid of losing whatever is leftover of their salary after paying for a life that’s becoming more and more expensive?

Well, it means that they now have an accessible way to grow their money exponentially without all the intimidating formality of big banks and financial advisors. 

The Cryptocurrency Wave is Still Building

The world watched as Bitcoin rose last year and soared again to meteoric heights early this year. While it’s easy to think you might have missed the wave, the fact is, cryptocurrency is still in its relative infancy. And 2021 appears to be the year that it will emerge as part of the financial landscape for everybody, not just the big names of Silicon Valley.

We’ve all heard of Bitcoin and Ether, but there’s a vast array of other cryptocurrencies that are demonstrating a potential for a highly promising future as well. While a certain amount of research will undoubtedly be required before choosing which up-and-coming or established coins to invest in, it’s a worthy use of time, and resources abound.

That said, let’s say you have already decided what cryptocurrency you’d like to leverage and how you plan to store them. Perhaps you have even spent some time imagining what to do with the profit if your choice pays off. So, what’s stopping you? 

Some are Waiting for the Next Big Dip

2020 was a rollercoaster, and there’s no need to keep digging the same hole; we know it. But with all the horrors it brought to our lives, some were able to see a silver lining: they invested in cryptocurrency at the right time.

Well, you can call that a giant pile of luck because predicting a major macro event like the one of March of 2020 or the financial crisis of 2008 is near impossible, even for the economic elites.

When looking at crypto investment, consider the long-term results rather than the price point at which you enter the game. As we stated before, predictions are not the best attribute of economists, but we can look at statistics and trends and make some educated guesses into the future that, provided life doesn’t flip on its head, are likely to come to pass.

If you want to remain cautious with your investment, try buying in smaller fixed amounts periodically; that way, you don’t put all of the money you intend to invest into one big commitment; instead, you’ll smooth out whatever significant variances Bitcoin (or your preferred crypto) may have in a certain period. 

The Fourth Era of Bitcoin

Like any technology, Bitcoin, as the most valuable and prominent crypto of today, has gone through something of an evolution. During its first years, the demand was in the hands of technologists, innovators, futurists, and digital natives; according to Bitwise Investments, Baby Boomers such as Paul Tudor Jones II are putting their big money into cryptocurrency as well.

There are many reasons to believe that cryptocurrency has gone mainstream. First, we all know about it. We may not be comfortable with all the terminology that comes with it, but we are aware of its existence and have started to tiptoe around it if not dive in headfirst.

Additionally, moves like the one of Paul Tudor Jones II, a big fish of the investment world, make others who were on the fence feel a bit bolder about moving into the crypto sphere.

But what makes Bitcoin and other cryptocurrencies more mainstream than ever these days are the always-increasing ways that digital assets are becoming integrated into our daily lives. This trend only promises to continue with certain banks and other well-known brands getting in on the action. Owning digital assets is more accessible than ever before.

One of the main reasons people haven’t gone into cryptocurrency yet is that they may not see the practicality of storing digital coins in virtual wallets. But with the arrival of applications with more practical use cases such as DeFi lending, for example, borrowers can now ask for loans in a much simpler way, and so the temptation to jump into what was once perceived as a “risky” trend grows stronger.

If you were waiting for Bitcoin to go mainstream, this is it. If you need further proof, PayPal is now accepting transactions with some leading cryptocurrencies, including Bitcoin, and allowing businesses to accept cryptocurrencies as payment. It doesn’t get more mainstream than that. 

Banks are Joining the Party — Sort of

The opening of Crypto-First Banks is a big step towards making digital assets accessible to everyday people. However, most financial institutions are still on the fence about whether to support clients’ cryptocurrency ownership.

But in the past months, things have been shifting closer towards acceptance. This movement has touched some traditional institutions such as BNY Mellon, America’s oldest bank, which announced its plans for a digital asset custody offering later in 2021.

Deutsche Bank also has plans for cryptocurrency custody and other related offerings; the idea is to develop a fully integrated custody platform for institutional clients and their digital assets to connect with the broader cryptocurrency ecosystem. 

Charts, Models and Predictions

Due to its novelty and the economists’ general struggle with an accurate prediction model (it’s not their fault, it is a highly volatile area of study), it’s nearly impossible to accurately determine what the value of leading cryptocurrencies will be in a year and beyond. Still, looking back on the behavior of Bitcoin, for instance, there are a few things one can expect.

Some experts project that the price of BTC could reach as high as $1 million by 2025.

Even if that number is a significant stretch, it’s not so hard to see why it’s not as pie-in-the-sky as one might think. While the price of BTC and other major players in the cryptocurrency world might not soar to such exaggerated heights, it’s safe to say that some profit is likely to be on the horizon for investors, whether they arrived early or are dipping their toes in as we speak.

If you’re still hesitant, just take a look at the private companies adopting Bitcoin as their reserve currency:

  • MicroStrategy – 71,079 BTC
  • Tesla – 43,000 BTC
  • Galaxy Digital Holdings – 16,402 BTC
  • MassMutual – 5,300 BTC
  • Marathon Patent Group – 4,813 BTC
  • Square – 4,709 BTC
  • Hut 8 – 2,851 BTC
  • Voyager Digital – 1,239 BTC
  • Riot Blockchain – 1,175 BTC

It is understandable to be hesitant when faced with the possibility of losing hard-earned savings, and it’s okay to move into more comfortable, familiar waters to make profits. But you have to admit that all these big names lend a certain sense of relief; they have experts on their boards, visionaries that understand these more complex topics better than most consumers, and they still choose to dive into crypto full speed ahead.

Even cities are thinking about acquiring cryptocurrency for their reserves. Miami’s mayor, Francis Suarez, announced he’s interested in making the move and is working hard to turn the city into a hub for crypto innovation. 

To Buy or Not to Buy?

So is now the right time to invest in crypto? As the saying goes, the best time to plant a tree was twenty years ago; the second-best time is today.

Whether you invest now or invest later, Bitcoin and the cryptocurrency economy are here to stay. Having a slice of this unprecedented wealth is becoming more accessible to anyone looking to make their money work for them, so why not? 

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