Top 5 Reasons to Invest in Digital Assets! (5️⃣🚀)
Next time you rebalance your portfolio, consider investing in digital assets. Gone are the days of the Wild West, when digital assets (cryptocurrencies) were used only as untraceable tools for the masked anonymous; today, the market has expanded and is in the midst of breaking into the mainstream. With a growing emphasis on developing #blockchain security, building versatile investment products for the average investor, as well as power players in traditional finance making headway in the industry, there is no better time to invest in digital assets than now.
Below, the VegaX Holdings team shares “The Top 5 Reasons to Invest in Digital Assets.”
1. Better Returns vs. Traditional Market Investments — You Do Like Gains, Right? 💰📈
First and foremost are the numbers. Since Bitcoin’s (BTC) launch in 2009, #BTC and alternative coins have yielded explosive year-over-year returns in contrast to traditional market investments. In 2017–18 alone, BTC rose in value by more than 600%, in stark comparison to the ~17.5% growth of the S&P 500 Index during the same period. Examining a broader time frame only accentuates the growth gap between the two investments, and as of today, one BTC can be traded on exchanges for an equivalent 11,020.00 USD. (check updated price via link!😉)
While much of BTC’s initial growth came about as a result of its novelty as the first blockchain cryptocurrency, perhaps a better benchmark for BTC and cryptocurrencies’ rapid growth is market capitalization. Calculated by multiplying the total number of coins in circulation by its price, the market capitalization of BTC currently sits at 117.81 billion USD. This figure implies a more than 570% increase from its 17.56 billion USD market cap in Q1 2017. For reference, the market capitalization of the companies within the S&P 500 Index grew 26.4% from 20.28T to 25.64T USD in the same period. While it is too presumptive to project growth from historical data, the trend of rising market capitalization and commercial interests in digital assets are surely something to continue to monitor in the near future.(CoinMarketCap)
2. Power Moves from Leading-Global Institutions — They’re Moving Billions, Maybe for Good Reason 💡💪
Meanwhile, financial institutions across the globe have been making power moves into digital asset investments as well. Last year, J.P. Morgan released their own U.S. backed cryptocurrency, the “JPM Coin,” and in May 2020 they signed with crypto exchanges Coinbase and Gemini — distinctly overriding their prior claims labeling Bitcoin a “fraud.” In fact, most if not all major investment banks have opened up “crypto” trading desks, and even those tarrying are involved in research to observe how the industry unfolds. The cryptocurrency market is one that banks cannot ignore, so they find ways to be researchers and/or minor participants, to gain some insights.
In the latest news, the Office of the Comptroller of the Currency (OCC), a federal banking regulator, declared that national banks and savings associations can carry out custody services for clients. As Jeff Roberts of Fortune writes:
“The news is significant because regulatory uncertainty has until now led major banks to avoid Bitcoin. What’s more, the bylaws of many big investment funds, including pension funds, oblige them to park clients’ money only with federally chartered banks. As the research group Coin Center notes, this amount[ed] to a de facto ban on cryptocurrency.”
— Fortune, July 22, 2020.
With custodianship previously confined to crypto companies like Coinbase, now, big banks can enter the fray — legitimizing the industry and innovating within the cryptocurrency ecosystem.
3. Enterprise Innovations Demonstrate a Booming Market and Customer Base — “We’re in the Future Now, Doc” 🚀🌌
Much of the digital asset industry innovation at the moment comes not from the bulge banks and firms, however, but rather from the entrepreneurs and enterprises within the blockchain, digital assets, and/or crypto industries. Digital cryptocurrency wallets and mobile trading platforms are being released alongside slews of other consumer-focused products, and in the meanwhile, large players like Robinhood and Binance have been routinely pushing out educational materials about digital assets geared towards the average investor. In addition to the boom in crypto IoT, perhaps the most significant development in the market has been the push towards packaging digital assets as traditional investments products, including digital dollars, crypto ETFs, and options trading. These products are vastly more flexible than standard coin trading — you need $10,000 in cash to trade one BTC — and provide investors the tools with which to de-risk investments. As an added bonus, traditional investment products serve as gateways to crypto-investing for newcomers, assuaging fears of the unknown with familiar instruments.
4. More Resistant to Governmental/External Influences — You can’t just PRINT more Bitcoin…right?! 📉📈😅
For investors, cryptocurrencies are also a form of investment less susceptible to the response of governments and banks, a topic of particular importance amidst a COVID-19-wrought recession. Macro investor Paul Tudor Jones made waves last month after buying BTC as a hedge against inflationary money-printing, and governing bodies have less levers to pull in crypto as opposed to the traditional stock market.
Indeed, global government responses to digital assets have been diverse in recent history. While some countries such as South Korea aggressively build digital asset infrastructure and seek to disrupt the market, others are more temperamental, waiting to see how the market develops before finalizing regulatory policy. What remains universal, however, is that governments acknowledge the utility of blockchain and digital asset technology. The applications are too myriad to ignore. In a worst case scenario, the cryptocurrency market may be slow to develop in certain regions; at best, policy changes and regulatory efforts facilitate an ecosystem that is not only conducive towards the crypto market, but that also seeks to champion it alongside the adoption and implementation of blockchain technologies.
5. Once-in-a-Decade Learning Experience with Potential to Create Enhanced Returns— It’s Now or Never! 💸😎
In this age of the digital economy, it is up to the investor to adapt or get left behind! Within a developing market as well as during this unprecedented time, industry leaders continue to strive to nurture a thriving ecosystem, and dominant investment strategies have yet to emerge. Not only will investors acquire multifaceted skills from navigating and learning about the cryptocurrency market, but they will also be investing into an industry with long-term potential. Crypto is moving away from the Wild West, and into the Second Industrial Revolution. Hop aboard now, or be left in history. 💨
Top 5 Reasons to Invest in Digital Assets:
- Better Returns vs. Traditional Market Investments 💰📈
- Power Moves from Leading-Global Institutions💡💪
- Enterprise Innovations Demonstrate a Booming Market and Customer Base🚀🌌
- More Resistant to Governmental/External Influences 📉📈😅
- Once-in-a-Decade Learning Experience with the Chance to Significantly Enhance Returns 💸😎
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As always, any content created and shared by VegaX Holdings does not constitute as investment advice. This is not considered investment advice. DYOR.