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Let’s face it: cryptocurrencies don’t have the best reputation. Billionaire investing mogul Carl Icahn has called them “ridiculous” and suggested that he doesn’t think that the bitcoin craze will end well. Warren Buffett and his business partner Charlie Munger have both said that they have no intention of investing in cryptocurrencies and that they don’t understand them.
But cryptocurrencies are becoming more mainstream. Even traditional banks, like Goldman Sachs, Merrill Lynch, and JP Morgan are all moving into the space.
There are good reasons for this: cryptocurrencies are a far more attractive proposition these days. Here’s why they will make you money in the future.
The Long-Term Future Is Bright
It’s surprising that Warren Buffett is so disinterested in cryptocurrencies. For a man who doesn’t mind waiting a decade for his investments to pay off, it’s strange that he isn’t more involved.
Focusing on the short-term price of assets like bitcoin is likely to give any investor a nervous breakdown. The price is all over the place as people grapple to understand the real value of this new medium of exchange. But in the long-term, the price of bitcoin will stabilize. And it’s very likely to be higher than the highs the market saw in December 2017 because the bitcoin network is growing all the time.
Bitcoin, therefore, is an asset to hold for the long term. Volatility will make short-term returns difficult. But if you can hold on for dear life for a decade, you should be rewarded.
It’s Easy To Invest
You might think that buying bitcoins would be a technical operation that only a computer geek could manage. But it turns out that investing is a lot easier than many people imagine. The most used investing platform is Coinbase, with around 10 million active investors. Coinbase provides digital wallets for all the major cryptocurrencies, and some of the newer, nascent products.
You Can Make Big Returns In The Space
You don’t have to invest in cryptocurrencies directly to make a significant return on your initial investment. Instead, you can simply ride the wave of crypto technology and buy stakes in the supporting assets. Server operator Viderium pays out interest, for instance, on investments, providing investors with a stream of income. Even if certain currencies die, buying the supporting infrastructure is still a prudent choice.
The reasons for doing this are clear: blockchain technology that underlies all cryptocurrencies has incredible potential. And in the future, successful cryptocurrencies will rely on it to be viable. As long as blockchain is around, there will be a need for supporting IT infrastructure.
Improved Regulations
Back in 2009, there were no cryptocurrency regulations. Buyers of bitcoin took huge risks. But today, things are changing.
Cryptocurrency scams are still a problem. But with better oversight from crypto exchanges and government alike, things are beginning to improve. Both the US and Japan have given the go-ahead for the trading of crypto assets at various stock exchanges, bringing the currencies into the official market. Regulations will help to calm nervous investors, and may even bring more money into the space, pushing up the price.