You don’t have to look far these days to find someone waxing lyrical about the future of cryptocurrency. From celebrities, to financial advisors, to perhaps even your friends and family, there is no doubt that alternative currency is a trend. But just because something is a buzzword, it doesn’t necessarily mean that it has a future. Or more to the point; it doesn’t make it a good investment.
Those keeping track of the Bitcoin value chart already know that cryptocurrency isn’t stable. In fact, it is the exact opposite of stable, with massive gains almost immediately followed by enormous drops. This is a giant red flag for anyone looking to invest. At least, it is a giant red flag for anyone wanting to avoid massive risk.
But given that there still seems to be such a buzz, it might be time to realistically ask if Bitcoin and other alternative currencies have a solid future.
Does Crypto Have Value?
Here is a thought; what value does Bitcoin actually have? The short answer is that it has exactly as much value as anyone is willing to give for it. A better way to look at it is that there are very few traders in the world that accept Bitcoin as a payment option. Cryptocurrency must first be sold in order to have actual value, which in itself raises a great many questions, the most prominent being; what if no one wants to buy it?
More to the point, the very fact that it must be sold to have value negates many of the supposed benefits of the currency in the first place. Words like decentralized are thrown around constantly, proposed as a big selling point. Only, given that the coins must first be sold for centralized currency before having value, what was the benefit supposed to be again?
Is It Really Anonymous?
Another constantly touted pro is that transactions with alternative currency are anonymous. But, these same transactions are also touted as being entirely transparent. So which is it?
It is well known that crypto is valued by criminal networks because, although all transactions are recorded, there is no way of knowing who actually made them. Accounts can be created anonymously, and transactions made, without any real identities being involved. Good news for criminals, but it is difficult to understand why this would be of value to the average person.
So again, it raises many questions as to what the mainstream benefit of a Bitcoin is, other than being trendy.
Not A Good Investment Idea
Ask 10 investment professionals if Bitcoin is a good investment, impartial professionals, not those already working for a cryptocurrency-based company, and the answer will be unanimous. An unstable market is a huge risk. A better bet is to read a Big Dollar Casino review and see if you can maximise your ROI there.
Until some sort of stable market is established, and until some sort of baseline is decided as to what the value of a cryptocurrency actually is, there is no sense in investing. Those that are putting in real traditional currency at this point are simply running a big gamble.