Cryptocurrencies are relatively new. They are facilitated by many evolving technologies, the most notable of which being blockchain technology. About 10 years ago, they became increasingly well-known due to rallies of the major cryptocurrency: Bitcoin. Bitcoin is the most common choice for anybody who is looking to invest in a cryptocurrency, and it has made the news recently as it rallied to reach its highest ever value, breaking $50k for the first time. That news has caused many people who thought holding crypto in their portfolio was a bad idea to change their minds. If you have previously thought that crypto isn’t a wise investment and have changed your mind due to major recent growth, 2021 should be the year you start trading crypto.
Crypto is Only Going to Get Bigger
Amara’s law states that people tend to get too excited about new technology and not excited enough about old technology – as a result, bubbles occur in the short-term, but sustainable rallies occur in the long-term. Look at Amazon’s stock since 1997. Nobody would say that Amazon is currently in a bubble, but it took until 2007 to reach the heights it had during 2000. Now it is trading 10 times higher than it did when it was part of the web bubble because it has shown its worth over time.
Crypto can and should be looked at through the lens of Amara’s law. It has been around for over a decade now and is only going to get bigger. Why are you reading this article? Chances are, you are wondering whether you should start investing in crypto for the first time. You’re one of the millions. If you could have invested in Amazon 10 years ago, would you?
Technology Facilitates Ease of Trading
Cryptos have come about in an exciting new era – fintech means that trading any investment is now easier than it has ever been in human history. All you need is a phone/computer and some money to trade. A whole industry has sprung up around crypto trading, making it easier and easier to trade for a minute cost. What’s more, widespread information makes cryptos easier to make a profit on than traditional trading, requiring less time doing your due diligence. Sites like altsignals.io make their living by giving their users signals about when they should be trading crypto and when they shouldn’t be.
Huge Players are Getting into it Too
Who is the richest man in the world? At the time of writing, it’s Elon Musk. His company Tesla has just invested $1.5 billion in Bitcoin. Musk tweeted the word “Doge,” and Dogecoin rallied. PayPal is accepting Bitcoin, Microsoft is accepting Bitcoin, and Dell is accepting Bitcoin. As cutting-edge technology companies are starting to invest their capital into cryptocurrencies, you can assume that other companies will follow these market leaders eventually. It will only drive the value of cryptocurrencies up when more and more people start to adopt them. Will you be a part of it?