Despite the markets crashing last week and then coming back to life for a little while, they have fallen once again with Bitcoin being priced at $5,353 at the current time of writing. If you think you’re too late to invest in Bitcoin or any other cryptocurrencies, worry not, it looks as if there’s still time.
Here are just a few reasons why you can still invest in Bitcoin:
Digital currencies like Bitcoin have yet to be governed by stable regulations. Many authorities are still having to debate as to what an actual cryptocurrency is. Some say that it is a currency and some say that it is a commodity, on the other hand, others disagree with both. There are still concerns that the securities law could be applied to some cryptocurrencies.
With these worries have been keeping institutional investors from venturing into cryptocurrencies. Most of the value currently that is in crypto is from financial traders, enthusiasts and a few capitalists.
Institutional capital is often very substantial and managed by big investment firms hasn’t ventured in the crypto industry. Morgan Stanley has already been showing some big interest but others are expected to avoid being left behind.
Just under a $200 billion market cap
When cryptocurrency started the idea was for it to be a new form of money. The industry has since come a long way since Bitcoin’s visionary whitepaper but where it is today is still very small when you look at the money and financial value that is in circulation.
The current market cap of the total crypto market is just under $200 billion. This is actually quite small compared to the currency valuation of companies like Amazon and Apple. The valuations of these firms are what they are today despite the fact that they don’t serve up to half of the world’s population. Meanwhile, if digital currencies achieve the long-term goal of becoming the new form of money, a large percentage of the world would be using cryptocurrencies.
Despite issues that still surround several cryptocurrencies including money transfer, the use of blockchain still has several uses that need resolution.
As reported by Invest In Blockchain:
“Blockchain platforms have developers working to make them better optimized for their functions everyday. For example, Ethereum is still working on a solution to scaling and Bitcoin requires the Lightning Network to better handle high transaction loads.
It can be said that the current market cap of the crypto industry reflects the current state of crypto projects. Only 36 of the top 100 cryptocurrencies have working products thus far, which shows that the industry is still in its infancy.”
It’s worth noting that we are not financial advisors and this is not financial advice. Cryptocurrency investment is very risky. Only invest based on your own research and invest with money you can afford to lose, always remember to trade safe!
What are your thoughts? Let us know down below!