Are Cryptocurrencies Really Just Currencies Anymore?

The financial crisis that swept the world in 2008 convinced many financial firms and advisors that asset allocation and portfolio diversity was the right way to go. Many portfolio managers turned to other forms of investments and recommended 6% to 15% of assets to remain in alternatives.

Co-incidentally, 2008 also marks the birth of cryptocurrencies which, since that period, have only continued to go upwards. It’s only a matter of time before the right tools and laws are developed that make the trade and exchange of cryptocurrency easier than before.

In this blog, we’ll take a look at whether investing in cryptocurrencies is a viable option or not.

The Government Wants to Regulate Cryptocurrency

Not too long ago, two bills pertaining to the support of virtual currencies were passed in the House of Representatives. Titled “The Virtual Currency Consumer Protection” and “Virtual Currency Market and Regulatory Competitiveness” Acts of 2019, both of which serve to protect consumers from bad actors and regulate the trade and exchange of cryptocurrencies. If anything, this constitutes a positive sign for the future of crypto.

Cryptocurrencies Facilitate Business Transactions

In today’s day and age, money transfer hinges on a third-party whether it’s PayPal, credit cards, or a bank. Relying on digital currencies will cut out the third party via public or private keys. A user’s account address or wallet controls the public key whereas transactions are signed using the private key. All process fees incurred by financial institutions such as banks for fund transfers are removed from the equation.

Transactions are stored on an online ledger thanks to blockchain technology, which eliminates the threat of hackers as every block that’s created must go through a verification process.

Stock Volatility

According to USA today the last quarter of 2018 was a bad time for the stock market. Falling prices and volatility had optimistic investors uncertain about future events. While things have stabilized since then, some experts still predict another period of recession that’s just around the corner.

In normal circumstances, investing for long-term in the stocks counts as a decent investment; however, if market uncertainty makes you nervous then investing in crypto is the soundest investment you can make.

Cryptocurrenies
Crypto Coins

cryptocurrenciesBitcoin’s bubble may have ‘burst’, but the same isn’t true for cryptocurrencies as a whole. The industry is currently on the upwards and is displaying positive signs of stability and growth. With that being said, investing in crypto requires access to the latest crypto technology news and articles.

E-Crypto News is a Crypto News Portal that provides up-to-date information regarding shifting trends and helps investors make sound financial decisions. Visit our website for more information.

bitcoin
Bitcoin (BTC) $ 54,893.00
ethereum
Ethereum (ETH) $ 3,938.54
binance-coin
Binance Coin (BNB) $ 651.56
xrp
XRP (XRP) $ 1.40
dogecoin
Dogecoin (DOGE) $ 0.481888
tether
Tether (USDT) $ 0.997080
cardano
Cardano (ADA) $ 1.69
polkadot
Polkadot (DOT) $ 36.68
bitcoin-cash
Bitcoin Cash (BCH) $ 1,342.54
litecoin
Litecoin (LTC) $ 350.16