When the first cryptocurrency launched in the early 2000’s, many were skeptical about the potential of a new technology. Traditional means of currency had been the backbone of the global economy for decades, so the idea of virtual currency seemed pretty far-fetched. Over the past decade, however, the popularity and value of cryptocurrency has only continued to grow, and there are now a variety of reasons why these digital assets make good investments.
Major Potential for Growth
Cryptocurrencies are not bound by all of the same rules and conditions that traditional currencies are. Because of this, they can often offer much greater potential, especially for individual investors. Bitcoin, the most well known cryptocurrency, has grown to over 5x its value from one year ago, and many other cryptocurrencies show similar potential.
Crypto is the Next Wave of Finance
Although many have doubted the potential of cryptocurrency the market only continues to grow. In addition to Bitcoin, top alternatives like Ethereum and Litecoin show major investing potential. In addition, new cryptocurrencies are popping up every day, creating value from a wide variety of assets, from household services to digital art.
Cut Out the Middlemen
One of the reasons that cryptocurrency has continued to grow in popularity is that it offers a number of advantages over traditional currency. Cryptocurrencies are not tied to a central bank, limiting the risk of inflation. In addition, the decentralized technology of many cryptocurrencies helps to make payments and trading more secure.