Crypto has turned out to become the biggest life-changing investment for many people all around the world many became millionaires from investing with only thousands and lost all of their money in this market but even if the crypto market is so volatile should you invest in it?
disclaimer: I’m not a financial advisor all the things and opinions I give are based on my own opinion and should be taken by you after your own understanding and your own research.
but even no matter what in 2021 the crypto market has given the best ROI to the investor who had taken the risk on some stable currency coin and big players like bitcoin and etherium but even meme coins like Dogecoin and Shiba Inu had touched the sky thanks to Elon Musk.
so now let’s discuss should you invest in the crypto market and bitcoin or not?
What is crypto currencies ?
Cryptocurrencies came into existence with the point of getting rid of the control of the government on fiat currencies which are under the control of the central authority or government who can print them as much they like and decrease their value.
And to make a currency that is free of this interference by a government or any person or entity crypto came into existence and the first crypto was the bitcoin.
and you will not believe when I say to you that the value of it when it came was less than $0.001 which is now more than $34000.
In crypto, the coin is produced in mining which is a process in which some computer is used to solve a riddle made by the system and for each solved puzzle a fixed amount of bitcoin is produced which is given to its miner.
And in this way, they come into existence and transaction and what makes them unique is that there will only be 21 million bitcoin ever in existence which increases their value cause of scarcity.
They are peer to peer therefore there can be no change by any individual to their value and no one can take a cut out of it as the bank.
Cryptos are going to be the future of currency as there was a time when people used to transact things to buy like they exchange wheat for rice, wood for stone in that time these objects were a mean of currency then came gold coin, silver coin and then the different currency of every nation but now as the time is changing there will surely come a time when these currencies will also change.
And the new currency will be something that will not be owned by any country or government and whose value will be decided by the people owning it or the whole world and crypto are the transition into that form of currency.
Some of this crypto will be the new currency in the future and only those who invest early will take the biggest advantage of it.
And in the year 2021 many people increased their investment in them by 100 times and if you were one of them you could have acquired your financial freedom in your teenage.
and it is also a very good way to have a diverse variety of investments in your portfolio and crypto can be a risky investment in it and we all know more the risk more could be the profit.
But if we talk about why you should invest you should also know why you should not invest in crypto in 2022
Why you should not invest in cryptos in 2022?
Cryptocurrency like bitcoin is highly volatile their price doesn’t depend upon any external factor and their price could change drastically with a panic of buying or selling in the market. Currently, the crypto market is dominated by the whales whose big contribution in the crypto could raise their value of them very rapidly and their taking profit decreases its value drastically.
They are a very risky investment and in case of any fraud or theft regarding they can’t be put in front of any court or government as they are still not legalized by most of the governments around the world.
As crypto is made to take the place of fiscal currencies and take control from the government many governments are still not in favor of them and they could also ban them in their country.
The future of crypto is still not in sight what is gonna happen in the future what will happen after a currency gets mined completely like what will happen when bitcoins all 21 million coins are mined no one can answer it right now.
These are all the uncertainties that make investing in them a risky bet.
As you would have already read their are many pros and cons of investing in cryptos and its not like their are not any other safe alternative but if you ahve a appetite for taking a higher risk then cryptos can be the best investment of your life and it is all up to you if you wish to invest in it or not.