Cryptocurrencies, fraud or opportunity?

In recent months they have become fashionable. That's why I decided to write this post.

If you have never invested in equity instruments, I DO NOT recommend you start here. Better start with any fixed income investment account such as CEDE, PRLV, CETES or Bonds.

Why? because the cryptocurrency market, as it begins, is very volatile and uncertain.

For example, a Bitcoin a year ago was worth about 12 thousand , today it is worth around 50 thousand. If you had invested 50 thousand a year ago (instead of giving the hitch for your car) today you would have more than 200 thousand.

Not bad for a year, do not you think?

However, just as today a Bitcoin is worth 50 thousand pesos, in a month it could well be worth 25 thousand and, if you withdraw your money at that moment, you will have lost half of your investment.

This volatility is the reason why I do NOT recommend cryptocurrencies as the first investment of your life.

If you already have more money in this of the investments (you have been spending time with fixed income instruments and have tried some of variable income) it is definitely something that I recommend you try.

As in any investment, it is advisable to analyze what is behind it: what or who supports it and what growth potential it has.

In the case of cryptocurrencies, what supports them is a technology called Blockchain or Chain of Blocks , which is revolutionizing (silently) the way we live, especially in terms of the financial and commercial system.

The cryptocurrencies promise to be the currency of the future

If you do not want or can not see it, this is my summary:

The cryptocurrencies are emerging as the currency of the future, which does not require financial intermediaries such as banks, governments, exchange houses or stock exchanges.

They are not regulated by any bank but by the whole world and by the law of supply and demand.

The technology that makes this possible is called Blockchain or Blocks Chain , which allows the purchase, sale and asset management in real time without intermediaries through encrypted and digitally sealed information at the same time in millions of computers around the world, making them virtually unforgeable .

This technology has many practical applications, including cryptocurrencies such as Bitcoin.

Now that we know more about how the technology behind cryptocurrencies works, we can talk about the pros and cons of investing in them.
Let's start with the cons:

Many people, especially those who know and live in the current financial system, are quite skeptical about it. The main argument is that there is nothing to support these currencies; there are no governments, there are no metals, or anything similar that somehow has a counterweight to the real world.

In addition, being a relatively new form of investment, it lends a lot to speculation and fraud.

On the side of speculation, it is thought that cryptocurrencies are entering a financial bubble that will eventually burst. This is mainly due to the fact that the price of Bitcoin and other cryptocurrencies has risen like foam in recent months, which could indicate that they are overvalued.

On the part of fraud, there are countless companies that are taking advantage of the ignorance of the people in this issue to develop fraudulent Ponzi schemes. In this link you can check many of them. The list grows every week, literally .

Now the pros go:

The blockchain technology is revolutionary. I think that, definitely, it's here to stay.

It opens a sea of ​​new opportunities to solve complex problems creatively.

It allows a more equitable and just world because it eliminates intermediaries who, for centuries, have profited from the monopoly of inefficient financial systems at the expense of users.

In general, it opens new gaps for our species and I like that a lot. For me, only for that reason is enough reason to bet on cryptocurrencies.

On the other hand, more and more businesses are accepting this new form of payment and the trend seems irreversible.

In 7 years, I see that paying with cryptocurrencies will be something of the most normal in the world. Something like today is natural or even necessary to watch movies on Netflix, when it was 7 years ago it was going around the Blockbuster.

Cryptocurrencies have a limited supply. They can not be created unilaterally, there is a process that limits the amount that exists in the market. This suggests that the price will tend to rise over time because the demand for these currencies will exceed the existing supply.

In summary, if you want to invest in cryptocurrencies do it only if:

• It's not your first equity investment.

• You are willing to let him work there for at least 2 or 3 years.

• You are aware that the money you put there could lose a lot of value over time but that, eventually, it is likely that you will recover and earn much more than you invested.

If, after reading and understanding the above, you already decided to invest in cryptocurrencies, it is worthwhile to continue reading ...

The best alternative to buy and sell cryptocurrencies in Mexico is Bitso