Cryptocurrency has been fighting through a “winter” as the entire sector has been up and down amid the global pandemic. Bitcoin, the barometer for cryptocurrency, has rebounded to a little more than $9,000 and experts are cautiously optimistic that this increase will continue. From September 2017 to present, cryptocurrency value dropped dramatically, plagued by hacks, crypto-jacking, and negative media coverage. With the increase in the value of Bitcoin and changes in the industry, fairer weather is around the corner.
Is The Crypto Winter Really Over?
Many experts feel like the right answer is “yes,” from crypto enthusiasts to Forbes magazine. As of right now, many believe that Bitcoin is going to continue making enormous gains for the next decade. The sector itself seems to have entered into a period of stability. 4% of Americans polled said that cryptocurrency is becoming their preferred investment vehicle. Experts feel as if this number will continue to grow as Bitcoin does.
Of course, Bitcoin as a commodity is going through the same time of growing pains that the Internet went through in 1995. It is becoming more readily available to investors and easier to navigate. So far, only 11% of the American population have invested in Bitcoin. The coronavirus pandemic may become a factor in that number rising as traditional banking services are still disrupted. People are looking for a better way to invest their money.
What’s The Downside?
Others are hesitant to invest in cryptocurrency because transactions still are not entirely secure or anonymous unless a VPN is used. Plus, transactions are irreversible, and hackers take advantage of this. As better protections are put into place, investment in Bitcoin and other cryptocurrencies will keep the industry on the upswing.
How Does Blockchain Technology Fit In?
Blockchain technology has given cryptocurrency a boost, but it has also been used in a wide range of industries to track products, power video games, and help deliver medications. As a form of cross-border payments, blockchain technology is viewed as the way of the future. Banks and other organizations have started developing their own blockchain platforms, and the city of Dubai is determined to be blockchain-powered by the end of the year. By building cryptocurrency platforms on existing blockchain technology, cryptocurrency will become more stable and utilized.
Cryptocurrency Is A Reliable Investment
While there are still growing pains to get through, cryptocurrency is no different than other technology that has had to prove itself, like smartphones and the internet. With some financial knowledge and cybersecurity, investors can safely take advantage of everything cryptocurrency has to offer. Investors looking for safe, reliable investments with moderate-to-low gains should avoid Bitcoin and other digital currencies, while more adventurous investors should consider what cryptocurrency offers.
Is there a risk of investing in Bitcoin and similar currencies? Yes. But then, investing in stocks and bonds in an uncertain, COVID-19 world is just as risky. If Bitcoin keeps on the upswing, and the winter is truly over, it may be worth taking the risk to secure your financial future.