Why you should be investing in cryptocurrency instead of the stock market.

in #cryptocurrency6 years ago (edited)

Complexity- Learning curve

Share markets have become a puddle of acronyms and so full of technical complexities that a normal person cannot optimally invest in it. To analyze various positions and then find out an optimal pick with sufficient return is an enormous challenge. This knowledge requires complex financial analysis. Instruments such as mortgage-backed securities (MBS), asset-backed securities (ABS), collateralized mortgage obligations (CMO) or collateralized debt obligation (CDO). The crash in 2007 showcased how even top rating agencies are no good at assessing risks. Bitcoin and other currencies although new are comparatively much easier to comprehend and grasp it’s potential. You need not take specialized training as you’ll find a lot of great content online to easily and quickly make you understand.

Returns

Bitcoin started as a response to the 2008 subprime cases, when the people had lost faith in the stock market and the banking industry in general. The influence of the government on the market and failure of control by the central node was noted at this time. Over the past 6 years Bitcoins has consistently outperformed any other form of investment (2011- Bitcoin +1500 percent, 2012- Bitcoin +299 percent, 2013- Bitcoin +5400 percent, 2014- USD +13 percent, 2015- Bitcoin +37 percent, 2016- Bitcoin +130 percent) In contrast The National Stock Exchange Nifty has given an average annual return of 12.5% in the past 15 years.
Competition

Extreme competition in stock markets has reduced margin of profits to extremely low levels while still maintaining a disproportionate risk factor. Ginormous firms control stock purchases and hire research teams to actively manage their stock positions. it’s hard for an individual investor to realize any substantial profits in this environment. Crypto currencies on the other hand are a boon for the individual investor, bringing parity between big investor funds and individual investors.’ Investment Bankers buy high expenditure technological equipments to gain an edge in trading. Big firms often buy super computers and set up their offices right next to the stock exchange to enable highly complex algorithm to trade and earn profits for them. Trading at more than a Trillion times a second. The benefit of investing in cryptocurrencies is that you do not have to compete against such giant players which will always have a lead because of their massive investments.

Liquidity

Bitcoin is a high liquidity when compared to stocks since it is essentially a form of money. While you cannot exchange goods for stocks you can do so with bitcoin. This enables one to store a larger amount savings as investment as one can instantly use them for exchange for goods and services. Its like keeping money in the form of money and yet investing it at the same time!

Flexibility

Crypto investments offer you great flexibility. Crypto markets are global and face very less restrictions this allows you to freely move between any form of investment anytime anywhere and instantly. Emerging ICO’s (Initial Coin Offerings) offer the flexibility to invest in early stage ideas. Thus you can participate in global innovation and fund those projects that you feel are going to perform the best without being restricted to a single nation or specific users.

Early bird gets the worm

The stock market has already saturated and thus profit expectations are low. Currently the markets are estimated to be in a bubble as bears are pushing to new heights. It is expected that the bursting of this bubble is imminent and would reduce the markets to more than half of what it is today. Bitcoin is just starting out, even now the cryptocurrency market cap is at 450 Billion dollar(24/2/2018), with the highest being in January 2018(830 Billion), a fraction of the attainable market cap of an estimated 10 Trillion Dollars.Stock-Market-Vs-Cryptocurrency.jpg

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