Digital currency as a profitable alternative investment
2017 could easily be called the year of cryptocurrencies with lots of new ICOs springing up and the value of big names like Bitcoin skyrocketing. From $1,000 to almost $20,000, Bitcoin is an asset that everyone wants to have on hand. At the end of the year, the price plummeted below $13,000 and in April 2018 the value of Bitcoin was around $6,700.
Cryptocurrency volatility can be dizzying for any individual, but there's no denying that it has surpassed other income-generating assets in value.When they hit a market cap of $90 billion, many still consider them the perfect alternative investment despite extreme volatility.
Beyond Bitcoin Technology:
For any avid investor, it is important to consider cryptocurrencies other than Bitcoin. In fact, it doesn't even fall under the right definition of a digital currency. Other companies like Ethereum and Ripple use blockchain technology to work with banks and facilitate transactions.
If the value of blockchain were so unpredictable and short-lived, then corporations like Merrill Lynch, JP Morgan, Bank of America, Microsoft, Samsung, and Joh Hancock wouldn't even think about investing in assets. produce into it. They run corresponding tests to improve processes and transactions using this groundbreaking technology.
Cryptocurrency Acceptance and Diversification:
Just 5 years ago, cryptocurrency was an unknown concept and now it has somehow found its way into all the news. best. A large number of investors are looking for different technological avenues to invest their finances, because they know that these technologies will shape the future of the world.
The actual mining process is extremely expensive because it uses electricity, bandwidth, and strong computing power. However, with large initial investments, it is possible to get good returns even after investing a significant amount in the mining process. It's not easy for a company to launch an ICO, some companies still do and have raised millions of US dollars through it.The heaviest place goes to Filecoin, which raised $257,000,000 from its ICO in 2017-2018.
Support for crypto by the financial world:
Even with its huge potential, no company classifies crypto as an alternative investment. As in any other investment, people make and lose money with cryptocurrencies, so they should not be seen as dangerous and unreliable.
However, AvaTrade believes that cryptocurrencies have all the potential and greatly supports these tech companies and ICOs. “At Bitcoin trading, we aim to provide quality Bitcoin trading to our clients and exceptional management for our active CFD partners,” said the Founder and CEO.
What is alternative investment?
Alternative investment means an asset that is not part of any conventional investment class. This includes real estate, hedge funds, private equity, and more. Transactions and processes are often unique, so rely on an authentic source to make those investments.
Over the past three decades, the alternative investment industry has grown significantly to become an important part of the financial system.Some entrepreneurs have established businesses that use a variety of resources and are making healthy investments.
Bottom Line:
Research has shown that nearly half a million people worldwide have invested at least $100 in crypto. With the increasing frenzy in the matter, this number is sure to grow over time. With companies backing the crypto world, an upward trend will emerge in its market.