Patience = earnings | Tips for crypto investors !
Investing in cryptocurrencies: tips, insights and upside potential
1. Cryptocurrencies investments are similar to investing to commoditiesInvesting in cryptocurrencies is very similar to commodities investing. The fact of the matter is that commodities have two ‘faces’. On the one hand, they are assets that are used in the real world. Base metals, for instance, are used in industry. Softs are used in the food industry.
Precious metals are used in the jewelry industry. At the same time, commodities can be invested in, through open market exchanges.Cryptocurrencies are similar. They are used in financial and insurance applications, but investors can also invest in cryptocurrencies.From that perspective, it is mandatory to look at usage and added value that cryptocurrencies create in this world when choosing a specific cryptocurrency to invest in.
2. Usage is growing as evidenced by the collective market capAll cryptocurrencies combined have a market cap of more than $60B meantime. So that includes all cryptocurrencies in existence: Bitcoin, Ethereum, Ripple, Litecoin, and hundreds of smaller and unknown ones.To put that into perspective, for investors, here are some reference points: Tesla’s market cap is $50B, Boeing Airlines $100B, Coca Cola $180B (rounded figures for April / May 2017).Note how the volume of real world transactions has gone up together with the market cap which indicates that ‘crypto is for real’ .
3. Most people are unaware about cryptocurrencies, an absolute minority uses themIf it is important to look at real world usage as a key criterium when considering investing in cryptocurrencies, then there is great news for investors: “you ain’t seen nothing yet”.According to Statista, who has dedicated a section to cryptocurrencies useful for investing, we see that the number of adults in the U.S. familiar with the most known cryptocurrency (Bitcoin) is only 24 percent. And, by far the most important data point on this graph, the number of Americans that use Bitcoin is 2 percent while the ones thinking of using it in the future is 25 percent.Investors should get excited when realizing this. Not primarily for Bitcoin, but more so for other cryptocurrencies.
Patience = earnings