Are Cryptocurrencies Changing Our Approach To Investing?
In the last 5 years there is a shift amongst users who are exposed to the world of cryptocurrencies. People now consider digital currencies as a suitable area worth their consideration from the perspective of growing their wealth.
Lack of regulations and high price volatility hasn't driven away anyone. Infact it has brought more attention and money to this area from largely young investors who are willing to take a risk to grow their cryptocurrency investments faster than traditional investment products.
Many years ago when I first picked up a book on investment planning, allocation and types of products to consider, cryptocurrencies were nowhere in my allocation.
Bitcoin existed but it had no real world value, but a decade later a large portion of my investments are in cryptocurrencies and despite the long bear market it has outrun traditional investments in ROI.
However, traditional investments have lasted the test of time but this statement is again relative. If you consider the past 10-30 years, the investing in stocks, mutual funds, real estate, bank fixed deposits, gold, government bond-typical investment products have delivered decent returns on investment without causing major losses to investors over a long period of time, atleast in the context of India where I am from.
Cryptocurrencies have only been around for a decade but the top tokens have delivered stellar returns. It's not for everyone because the risk appetite needs to be high. But gains are also high. Same can be said of the stock markets also. Timing is key in both areas.
However, of all the aforementioned investment products, Gold has truly stood the test of time over thousands of years as a store of value. No FIAT currency has managed it nearly as well as Gold and history is proof of hundreds of different FIAT currencies that failed to outlive Gold in their ability to stand the test of time.
It's hard to compare cryptocurrencies to gold as we cannot look historically into the performance of cryptocurrencies as far back as we can with Gold. But what we can do instead is to plan wisely for the near future. These opt-in digital currencies give you the option to trade 24/7/365 and exit as soon as you feel you're goals are met.
There is no minimum or maximum duration to stay vested in a trade. Unlike some traditional investment products you won't find a lock-in period here.
Therefore I belive that for Generation XYZ, cryptocurrencies are a new instrument of speculation as well as a system to transfer value to each other. We can do this without any intermediary or government authorisation or unnecessary meddling.
For me cryptocurrencies at present are a good instrument to speculate and grow my portfolio. Being an early adopter has certainly helped but remaining glued to this space has further sped up the process of reaching my financial goals faster over government certified investment products.
This process would've been a lot slower had I remained passive in my choices and sticking to traditional investment products which are backed by banks and controlled by governments which in the long term cannot be relied upon to safe guard our money 100%.
Hence, decentralised speculative instruments are likely to continue gaining mainstream attention and adoption. Currently the percentage of global users investing in cryptocurrencies is probably in all likelihood less than 1%. But, I think this era will change the way the next generation goes about considering its investment choices.
There's also an interesting article around ethical investing-How millennial ethics are shaping FinTech. If you want to understand what ethical investing means then check this out. It is possible that in the future we may see digital currencies/assets becoming a part of this space.
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So far i think , New form of technology with AI and growing development of blockchain can change our way of investing in near future. People more interest about
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and with more awareness people will invest more on the crypto space
very true a few years ago when thinking of investing my options were shares , treasury bills and bonds, now the dynamics have changed. i am investing more on coin markets exchanges
I believe the thing that's keeping people away from investing in crypto-currencies is that there isn't a time-tested and proven 'general pattern' regarding the bull run or the bear run like in the case of stock markets. Also while cryptos give a greater return to those that stay patient, staying patient for a long time, nearly a year or in fact over an year, waiting for that one bull run to come is something that's pretty discouraging. Stock markets otoh have at least three bull runs per year.
You said it very correct. People are getting more interested day by day on crypto currency. I think this trends will gonna more popular if crypto gains some real value in our daily regular life.
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My story is different from all people here.
My own Investment is started with crypto currency itself.
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I would answer Yes to this question
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