Digital Currency as a Profitable Alternative Investment
The year 2017 can easily be termed as the year of cryptocurrency with so many new ICOs coming into existence and the value of biggies like Bitcoin going sky-high. From $1,000 to just under $20,000, Bitcoin was one asset everyone wanted its hands on. At the end of the year, the price radically dropped under $13,000 and as of April 2018, the value of Bitcoin is around $6,700.
The volatility of cryptocurrency can be dizzying for any individual but there is no denying that they have surpassed other income-producing assets when it comes to value. As they hit the market cap of $90 billion, many people still consider them to be the perfect alternative investment despite the extreme fluctuation.
Beyond Bitcoin Technology
For any avid investor, it is very important to look at cryptocurrencies other than Bitcoin. In fact, it doesn’t even come under the proper definition of digital currency. Other ventures like Ethereum and Ripple are using the blockchain technology to work with banks and to facilitate transactions.
If the value of blockchain was so unpredictable and short-lived, then conglomerates like Merrill Lynch, JP Morgan, Bank of America, Microsoft, Samsung, and Joh Hancock wouldn’t have thought of investing fortunes in it. They are running their respective tests to improve the processes and transactions with the help of this revolutionary technology.
Acceptance and Diversification of Cryptocurrency
Just 5 years ago, cryptocurrency was an unknown concept and now, it finds its place in all the latest news somehow. A large number of investors are looking for different technological avenues to put their finances into because they know that such technologies are going to shape the future of the world.
The actual process of mining is incredibly expensive as it uses electricity, bandwidth, and intense computer power. However, with the sizable initial investments, it becomes possible to earn good returns even after investing a substantial amount on the mining process.
It is not easy for any company to initiate an ICO, several firms have still managed to do so and have raised millions of US dollars through it. The heaviest spot goes to Filecoin which managed to collect $257,000,000 from its ICO during the year 2017-2018.
Support for Cryptocurrency from the Financial World
Even with its huge potential, there are no firms which classify cryptocurrency as an alternative investment. Just like in any other investment, people make and lose money with cryptocurrencies so they shouldn’t be deemed unsafe and unreliable.
However, AvaTrade believes that cryptocurrency has all the potential and they greatly support such technological ventures and ICOs. The Founder & CEO, says, “At Bitcoin trading, we are passionate about providing quality trade with Bitcoin to our clients and exceptional management to our operating CFDs partners.”
What is Alternative Investment?
By alternative investment, we refer to such an asset which does not belong to any of the conventional investment types. This includes real estate, hedge funds, private equity etc. the transactions and processes are often unique so one needs to rely on an authentic source to make such investments.
Over the last three decades, the alternative investment industry has developed substantially to become a strong part of the financial system. A number of entrepreneurs have founded firms by utilizing a diverse range of resources and are generating healthy investments.
The Bottom Line
Research has shown that almost half a million people around the globe have invested at least $100 in cryptocurrencies. With the increased frenzy in this regard, this number is definitely going to increase with time. With firms supporting the cryptocurrency world, an upward trend will be seen in its market.