Bitcoin has been at the forefront of economists’ attention since the beginning of 2017, it appears to hit a new paradigm every month, yet it still flies right over people’s heads. Sure, most people have a rough idea of what Bitcoin is, “Magical internet money, right?” That was my understanding of Bitcoin up until about a month ago, which is when I began looking into the Crypto Currency scene.
Bitcoin is what is called a “Crypto Currency.” Crypto’s rise in popularity is due to their decentralized nature and, of course, investment opportunity. Because Crypto is decentralized, it isn’t regulated by any government or institution, making it completely reliant on supply and demand; unlike the US dollar which is printed by the millions daily. Because this is a fairly new technology, it is volatile, meaning its value rises and falls rather quickly. Despite this, Bitcoin has had an amazing bull run up to 5,000 from 900 earlier this year. This has attracted many investors into the space, rocketing the price even more. Bitcoin is not alone, however; there are hundreds of cryptocurrencies with hundreds of different adaptations to the technology. Identifying currencies with the most potential and best applicable technology is a great investment strategy; often making people enormous ROI, or return of investment. The market is young, only gaining traction in 2013, making potential earnings substantial. Just a few days ago, bitcoin soared over its all time high, hitting 7,000, and is showing no sign of slowing down. As aforementioned, bitcoin isn’t the only crypto with enormous ROI potential. Coins like Monero, a privacy coin centered on anonymous transactions, have seen a 1500% increase over the last few months. This investment opportunity however, might be short lived. It is speculated that bitcoin is a bubble, and most agree. As more money pours in from new investors, market capitalization increases, the bubble grows closer to popping. BTC won’t be the top dog forever, and as of now it is up to speculation what its replacement will be. So I urge you to consider a market hundreds of times more volatile than the stock market, crypto is the future. Drill for the oil of the 21st century, invest in cryptocurrencies.