The world of digital currencies, especially cryptocurrencies, is technologically foolproof. It’s safe as a house and practically impenetrable. However, from a regulatory standpoint, there’s still some way to go before this paperless medium of exchange can become the norm (if at all!).
For people belonging to a generation other than millennials or Gen Z, it’s easy to write off cryptocurrency as yet another new-age fad. Having spent the majority of your life adhering to and, in some cases, upholding the traditional Fiat system, it’s hard for you to see the utility of a paperless currency. After all, it doesn’t physically exist, can’t be used as legal tender in most countries around the world, and is extremely volatile.
Nevertheless, cryptocurrencies seem to be here for the long haul. They’re certainly much more than some new-age technological fad, even if the world is currently far away from adopting them as the standard medium of exchange in business dealings and other day-to-day matters.
Crypto & FOMO: It’s Real!
The crypto trading FOMO (fear of missing out) isn’t some fictional idea. It’s 100% real and even seems to be a huge investor draw!
You may not have invested in cryptocurrency and probably had no plans to do so soon. However, chances are that you’ve noticed people all around you discussing it eagerly in recent times. In particular, its current volatility must surely have come up in heated debates between friends, colleagues, and acquaintances.
Also, multiple A-list celebrities and entrepreneurial bigwigs have either invested in cryptocurrencies and NFTs or endorsed them through their public statements during the last few years. There doesn’t seem to be a soul alive who isn’t involved in crypto trading in some way. All this might have left you with a case of cryptocurrency FOMO.
Should You Invest In Cryptocurrency?
There isn’t a simple yes or no answer to this question. You have to evaluate multiple factors before making such a decision concerning your finances. As with anything, there are pros and cons of trading in Bitcoin and other cryptocurrencies.
If you’re confused, the following sections include some key points that you should know. Keep them under consideration before making the call to invest or not to invest in cryptocurrencies.
What Draws People Towards Cryptocurrencies?
There are three main reasons why people are attracted to cryptocurrencies.
Decentralization & No Regulatory Hurdles
Fully decentralized and unregulated, the value of a cryptocurrency isn’t dependent on the economy of any one country. In addition, most of the conventional financial regulations don’t apply to the crypto world, which is the norm when it comes to Fiat currencies,. At least, thats the case for now. Things might change in the future.
Moreover, the Blockchain network, the decentralized database that stores all crypto records, is a perpetual entity. Thanks to its decentralized nature, there’s no threat of data getting hacked, deleted, or accidentally erased by some not-so-tech-savvy user. The only way to eliminate all data on a private Blockchain is to do away with the Internet on the entire planet. Of course, that’s not even remotely likely to happen anytime soon!
Leading Entrepreneurs Have Been Bullish About the Potential of Cryptocurrencies
Some of the most stellar names from the business world have offered glowing endorsements to Bitcoin and other cryptocurrencies in recent times. The ones who most readily come to mind include Elon Musk and Gary Vaynerchuk. Musk, in particular, invested $1.5 billion in crypto in 2021.
The portfolio of the Tesla Motors CEO included Bitcoin, Dogecoin, and some other cryptocurrencies. His tweets about Dogecoin once caused the currency’s value to skyrocket in less than a day. Tesla Motors even had plans to accept payments in Bitcoin. In fact, the company continues to have significant holdings in the most well-known cryptocurrency on Earth.
On the other hand, Belarusian-American entrepreneur, motivational speaker, writer, and Internet personality Gary Vaynerchuk has regularly spoken in favor of NFTs and cryptocurrency. The CEO of VaynerMedia and Chairman of VaynerX even launched his own NFT collection by the name of “VeeFriends” in 2021. Vaynerchuk’s idea was to engage his huge international following online, enable them direct access to contact and communicate with him, and give them financial rewards for their support through the years.
Here’s What You Need to Be Wary Of
The Value of Cryptocurrencies Fluctuates Wildly
This is a double-edged sword.
Depending on the trading volume at any given time, the value of Bitcoin and all other cryptocurrencies tends to fluctuate wildly. Many investors are comfortable with it, but quite a few aren’t. Therefore, you need to consider this aspect carefully before deciding to take the plunge.
There’s a Gender Investing Gap: Pay Attention, Ladies!
If you’re a female investor and serial entrepreneur with a presence in multiple industries, the apparent lack of women in the crypto world might be another reason for your FOMO. The numbers indicate that about two-thirds of crypto traders are men.
Given how female entrepreneurs have been making their mark in every sector, you would probably wonder if more women’s involvement in the crypto space could help take care of the longstanding gender wealth disparity in our world. It’s an interesting assertion but your decision to invest shouldn’t be based on this alone.
Conclusion
When all is said and done, you need to carefully consider all the aspects mentioned in this piece. Most importantly, the nature of your finances should dictate your decision to join the crypto bandwagon or not, never invest more than you are willing to loose.
For more updates about Bitcoin and other cryptocurrencies, keep watching this space on The Crypto World. Till next time, it’s adios!
