Are Cryptocurrencies Still a Good Investment Idea?

Cryptocurrencies have made their way into the mainstream market and investors are opting for them over conventional assets. It’s known that Cryptos offer faster transactions to any part of the globe, and many investors find them convenient as they have complete control over their money. However, the recent bearish trend in the market is proving to be challenging for many Cryptos, and many Crypto projects are failing to survive in the recent market conditions. The crash of FTX has set the entire market in a poor condition, raising questions about whether Cryptos are still a good investment option but many trading platforms like BitIQ are still popular in introducing interested parties to trading these assets.

Crypto is a Poor Selection for Long-Term Choices

The Crypto market has been facing volatility since its existence, and it is no surprise to the community. The COO of Prudential’s asset management, Taimur Hyat, expresses his view on this topic with CNBC. He shares that Cryptocurrency investments may include much deeper risks, and investors will come to know more about this in the coming times. Investors who are thinking of investing funds in Cryptocurrency for the long-term should be well aware of this. He further adds that, though people are thinking of Cryptos as an alternative to conventional assets, digital currencies have failed to fight against serious inflation in reality. He also adds that Cryptos are not good for environmental and social aspects, and they lack regulatory guidelines, making them prone to a downfall like that of the FTX crash.

Digital Currencies Are Not Get-Rich-Quick Schemes

A fraction of people think that Cryptocurrency investments can make them rich quickly. Many economists and professional investors have been studying the market for a long time, trying to analyze whether Cryptocurrencies are reliable and can act like real currencies. These studies have revealed many facts about the market. Many Cryptos may face a downfall or rise of over 20% per day, making them unreliable. Economists have said that these Cryptos can never replace traditional fiats in many aspects.

Considering these facts, it’s clear that Cryptos can never make you rich overnight. They are full of fluctuations, and their values can change in a day.

Cryptocurrency Investment May Have Negative Impacts

Allison Schrager, an economic columnist at Bloomberg, says that despite investing in Cryptocurrencies, she is not sure of their true value or what problems they solve. With the fall of FTX and the market as a whole, it shows that Cryptos should be separate from traditional markets. Schrager thinks that everyone is losing money here, and the entire community should seriously think about this loss by FTX.

Paul Krugman, an economist, shares that Cryptocurrencies should be regulated as soon as possible. But, he also feels that this market cannot survive amidst regulations as well. Though the falling prices do not mean that the Crypto industry will ruin, no one is sure what is about to happen in the coming times.

You Can Still Invest in Cryptos

Though the market is full of volatility, you can still consider it as an investment option. Alex Kellog, a columnist and investor, suggests that despite the market’s volatility, Cryptos can still be considered as an investment option. He believes that the chaos of today’s market will appear as a big loophole in the future, but the market is more active today than it was before, and with the advent of professional investors in this industry, it is unlikely for the market to completely collapse.

Though Crypto may seem to be dying, Blockchain technology is the reason it may survive. Blockchain is the backbone of most cryptocurrencies and is a decentralized, secure, and transparent ledger that records all transactions. This makes it a reliable and tamper-proof system for transactions, a crucial aspect of any traded asset. Additionally, the potential use cases of Blockchain technology, from supply chain management to digital identity, are vast and it is already being adopted by various industries. Furthermore, with increasing regulatory scrutiny on cryptocurrencies, blockchain technology can also help to address compliance and regulatory concerns. These factors all indicate that Blockchain technology may be responsible for saving cryptocurrencies as traded assets in the future.

*Disclosure: This article is for entertainment and educational purposes only. Nothing on this site constitutes financial advice. I am not a financial advisor. You should always do your own research and consult a qualified financial advisor before making big decisions with your money as capital is at risk with any investment. This post may contain links to external sites and affiliates, Savvy Dad accepts no responsibility for how you use these external sites and services (see Site Terms and Privacy Policy).