Cryptocurrency: Should We All Be Investing?
Experts at the financial website, Invezz.com, have taken the time to answer some of our burning questions about this digital currency phenomenon. Hopefully they can help make a smidge more sense of an investment system that might as well be explained by people in binary half the time.
”People are always nervous about change, and cryptocurrency poses a threat to traditional finance. The only real remedy for people’s scepticism will be time."Invezz.com
1. Is cryptocurrency safe?
Yes, cryptocurrency is safe. In fact, it’s arguably safer than any other form of money. All funds stored in cryptocurrency are secured by blockchain technology and a reliable record of ownership. On top of this, cryptocurrency wallets are so well encrypted that they are virtually impossible to hack into. Your only concerns should be the same as with any personal finance accounts – keep your account passwords and wallet private keys safe and your funds will be protected.
2: Is cryptocurrency a good investment?
There are definitely good investment opportunities around and young people especially are hopping in and making a lot of money.
Bitcoin is among the best-performing assets of the past decade, and it’s clear that there is money to be made by investing in digital currencies. Cryptocurrency has forged its place in the financial landscape, and at this point, the question is one for each individual investor to answer for themselves.
3: Is cryptocurrency legal?
Yes, there is nothing illegal about cryptocurrency. In any country where online trading is legal, it is almost certain that cryptocurrency will be too.
4: Why does cryptocurrency value drop?
Many reasons, news, usability, adoption, demand. The price of any publicly traded asset is decided by the buyers and sellers reaching an agreement on its fair valuation.
Cryptocurrency markets are notoriously volatile, just like any new market before it’s had time to mature. While the technology is clearly here to stay, nobody can say for certain what the long-term future of cryptocurrencies will be, and it’s that uncertainty which leads to a very reactive market prone to sharp swings.
Infographic courtesy of Visual Capitalist
5: Why are people sceptical about cryptocurrency?
People are always nervous about change, and cryptocurrency poses a threat to traditional finance. The only real remedy for people’s scepticism will be time. Bitcoin was launched in 2008, but it is only in the last year or so that governments, large institutions, and companies have started to take it seriously as both a solution and investment class. While it’s been a long time coming, this is a positive step for cryptocurrency and bodes well for its acceptance by society as a whole.
Now we’ve got some of the facts straight, we wondered which countries are the most invested in cryptocurrency. Invezz.com did a study around Google search volumes that revealed that the United States is the country most interested in cryptocurrency, with an astonishing 2,556,000 online searches regarding cryptocurrency each year – the equivalent of 7,003 online searches per day! Ranking second is India, where there are 804,000 annual online searches about cryptocurrency. Despite following in the leaderboard, this is still 69% lower than the United States.
United Kingdom follows in third place with an average of 648,000 online searches about cryptocurrency each year. Indonesia (324,000), Canada (300,000), Vietnam (276,000), and Australia (273,000) are among the other countries in the world where there are over 200,000 annual online searches about cryptocurrency, respectively ranking fourth, fifth, sixth and seventh. At the other end in 20th place is Singapore seeing an average of 61,200 online searches relating to cryptocurrency each year.
With the UK in third place, it is clear that many of us here in Blighty are interested in investing smartly. If you want to find out more about how you can get more bang from your binary buck, head over to Invezz.com to decrypt the crypto mystery!