Since 2011, the value of Bitcoin has soared 25,000 percent while that of Ethereum has risen by 2,700 percent since May 2016. Despite the extreme volatility witnessed amongst the top cryptocurrencies, traders are still loving them.
The question which arises here is that how can one trust such an asset which shows such tremendous volatility in its value? Can it be a bubble?
JPMorgan CEO Jamie Dimon has dismissed the cryptocurrencies as fraud saying, “It’s just not a real thing, eventually it will be closed.”
While he may not support Bitcoin, his company is partnering with Royal Bank of Canada, Australia and New Zealand Banking Group to initiate the project named ‘Interbank Information Network’as he is a staunch supporter of blockchain technology.
The Sobbing New Investors
All the people who recently dived into the crypto game must have incurred some significant losses due to February’s correction. The recent stats indicate that people who invested in Bitcoin did so at a higher price and now, the value of this cryptocurrency has surged way below $10,000.
SiimOunap (crypto trader and an FX) says commenting on the current landscape, “The majority of people no longer see cryptocurrencies as a way to earn a quick buck anymore. People are now starting to invest because they can see the value in the long run.”
Why Are People Still Interested in Cryptocurrencies?
Although Bitcoin and Ethereum have lost a lot of value, the promising future of the cryptocurrencies and blockchain technology has many people glued to them. They believe that there are three main reasons to invest in them:
· One would definitely want a strong net-worth against the fall of the dollar imperium as people believe that it is going to happen sooner or later.
· People want to support the vision behind the cryptocurrencies – free and hard money for everyone.
· The inclination of people towards technology and their love for it. The Blockchain Potential
Investors are not ready to give up on the crypto space as hundreds of millions of dollars are still traded as tokens in exchanges around the world. Within the first three months of 2018, around $4.8 billion was raised through various token sales and ICOs are generating 3.5 times more capital than venture capital funding.
The blockchain is considered to be the next disruptive technology and an entire ICO has been dedicated to educating the people about its importance and wonders. Ventures like ExtraCredit ICO is a generous attempt to increase the awareness and knowledge amongst people regarding blockchain, cryptocurrencies, and ICOs.
The Bottom Line
Investing comes with its own set of risks and rewards. People might be more reluctant to invest in crypto because of the newness of the technology but the rewards also seem to be promising. With increased support from traditional platforms and participation of well-recognized institutions, the world is set to be revolutionized by the crypto activity.
The wise thing to do in current times is not to own the amount of cryptocurrency which one cannot afford to lose and an unwise thing to do would be not to own any at all.