Every year, investors ask the opinions of their colleagues on forums and other platforms about whether they should enter the cryptocurrency market. The points of view of network users traditionally differ and the indicators like xauusd are constantly changing.
Some believe that it is never too late to buy digital assets, while others, on the contrary, do not see the potential in a new financial instrument. Each investor has his arguments for and against the purchase of digital assets. Let us consider the most popular reasons for investing in cryptocurrencies.
Prospects for investing in cryptocurrency
Among the most common reasons for buying digital assets are the following.
Cryptocurrencies have growth potential
Consider the argument on the example of the most capitalized cryptocurrency – bitcoin (BTC). The issue of the coin is limited. In total, about 21 million coins will be mined. This feature makes bitcoins especially valuable, against the backdrop of flooding the market with the main reserve currency of the world – US dollars.
The American authorities are trying to overcome economic problems by printing new parties of the national currency. This approach, due to the growth of supply, reduces the value of dollars. Against the backdrop of the depreciation of the USA national currency controlled by the authorities, bitcoin, limited in emission, began to be perceived as a tool for protecting savings.
It is worth mentioning that the CEO of the popular crypto exchange Binance, Changpeng Zhao, calculated that every owner of at least one bitcoin, over time, would become one of the richest people on the planet. Such guarantees to BTC investors, in his opinion, are opened by a limited emission of cryptocurrency.
Changpeng Zhao has reason to be so confident about bitcoin. The fact is that cryptocurrency has been steadily demonstrating growth for many years. Following Bitcoin, many other cryptocurrencies are also showing positive momentum.
The financial market is moving toward digitalization, and you can make money on it.
People increasingly prefer non-cash payment methods all over the world. The growing popularity of digital payments, among other things, can be seen in the statistics of the crypto market and instruments like stochastic and similar options. For example, another surge of interest in bitcoin, based on the volume of purchases of cryptocurrency, was recorded at the beginning of 2021.
Probably, in the future, the market is waiting for new waves of popularity of digital assets. Against such a background, large organizations are increasingly beginning to accept cryptocurrencies. For example, today you can buy many things with bitcoin: from airplane tickets to Starbucks coffee.
El Salvador has gone the furthest in the digitalization of the payment system. At the beginning of September 2021, the country’s authorities made bitcoin a national currency, on a par with the US dollar. Now in El Salvador you can buy everything for BTC: from housing to a glass of beer at the festival.
Further digitalization of the market can positively affect the value of cryptocurrency as the most modern financial instrument. Investors, in turn, will be able to use the changes to earn money.
Cryptocurrencies are the path to independence from centralized organizations
Traditionally, power over the financial market has been in the hands of the government. This is not the case with cryptocurrencies. Digital assets like bitcoin operate in a decentralized manner. Government-controlled agencies are not involved in operations on their networks.
This level of freedom appeals to many users. Likely, interest in a financial instrument that politicians cannot put pressure on will continue to have a positive impact on the value of cryptocurrencies.
Although cryptocurrency is a young financial instrument, it has already managed to prove its investment attractiveness to market participants. The statistics of the movement of digital assets allow us to predict the continuation of positive dynamics. This means that it is not too late to start buying coins.
