The cryptocurrency craze has been one of the biggest investment opportunities of our time.
But before you rush off to mortgage the home to buy into the crypto craze, there are a few facts you need to understand.
Crypto Fact No. 1 – Cryptocurrency is Volatile
We’re all well aware of this, as we’ve watched crytpocurrency prices plummet on the Bitcoin ETF delay. Investing in the cryptocurrency market has a high amount of risk – you can win big one day, and then, without warning, lose your money the next.
As we know from history, markets are littered with popped bubbles from the tulips in the 1600s, to the Internet boom, and the U.S. housing market fiasco.
Crypto Fact No. 2 – There is no fundamental backing
Unlike the U.S. dollar or gold, digital currencies aren’t backed by anything. They also have no direct fundamental ties to anything, which makes valuing a cryptocurrency nearly impossible. However, that’s what also makes them so attractive.
There is no bank or government involvement. There are no transaction fees and no real reason to give your actual name. Better yet, merchants around the world are just beginning to accept them, including web hosting to pizza and manicures.
Crypto Fact No. 3 – There’s More Value in Blockchain
Blockchain refers to a decentralized database. If you think of a traditional database like a spreadsheet, blockchain distributes that so the spreadsheet runs on millions of computers. It also uses state of the art cryptography, so that once information goes in, it is virtually impossible to get it out again without the original passcode or key.
It’s revolutionizing real estate, healthcare, and even voting for example.
Crypto Fact No. 4 – Acceptance is Spreading Like Wildfire
The number of businesses accepting cryptocurrency is growing by leaps and bounds. Intuit, PayPal, Dish Network, and Overstock.com are some of the biggest. At Microsoft for example, you can buy content in the Windows and Xbox stories. The company was even behind the launch of Azure Blockchain as a platform that allowed larger-scale businesses to use blockchain to facilitate settlements.
Even some attorneys are accepting it as payment. According to PYMNTS.com:
“We’re even just beginning to see Bitcoin ATMs popping up. In fact, according to Coin ATM Radar, there are now 3,567 Bitcoin ATMs just in the U.S.”