5 reasons to invest in cryptocurrency now. Prospects for cryptoindustry

The current bearish trend is not a reason to turn away from cryptocurrency, and in this article we will tell why.

Over the past decade, the cryptocurrency industry has come a long way, but it is not too late to invest in it. Any investment in digital currencies is a symbol of faith in the long-overdue changes in the global financial industry. In addition to the obvious shortcomings, the existing system has long been outdated, and its development has almost stopped.

Cryptocurrencies allow anyone to take advantage of the financial system, regardless of location. You are mistaken if you think you missed your chance. Here are five reasons why it is not too late to invest in Bitcoin and other cryptocurrencies.

The current capitalization of the crypto market is only a small fraction of the value of some large companies.

Satosi Nakamoto intended to make a cryptocurrency a new form of money. The industry has done a great job since the advent of the unique White Paper Bitcoin , but today it still accounts for only a small fraction of all the world's money and financial values ​​in circulation.

At the moment, the total market capitalization of the entire cryptocurrency industry does not exceed $ 130 billion. This is much less than the cost of such giants as Amazon ($ 902.8 billion) and Apple ($ 889.2 billion). Technology companies have grown to such proportions, although their target audience does not exceed half of the world's population. If cryptocurrencies really manage to become a new form of money, they will be used by a significant portion of people (if not the entire population of the planet).

Imagine what would happen if Amazon and Apple decided to integrate digital currencies into their business. Currently, many cryptocurrency projects enter into partnership agreements that increase their popularity and accelerate the introduction of blockchain and digital currencies into our lives.

Moreover, if you look at the chart above, it becomes clear that cryptocurrency is still very far from the total amount of money in the world.

By the most conservative estimates, digital currencies are fully capable of occupying the same niche as gold. If we take into account their ability to completely replace conventional money, it becomes clear: the growth potential of the cryptocurrency industry is simply huge.

Institutional investors have not yet entered the market

There are still no uniform rules for regulating digital assets. In fact, regulators in many countries have not even come close to defining what a cryptocurrency is. Some consider it a form of money, others are called a commodity, others do not agree with both parties. As a result, the industry still has concerns that securities laws may be applied to some cryptocurrencies.

These and many other doubts restrain institutional investors. The bulk of the cost of cryptocurrency is currently derived from enthusiasts, traders, and a small number of big capitalists.

Institutional capital, which is usually managed by investment firms, still avoids the cryptocurrency industry. However, gradually the situation is changing for the better. Some time ago, the largest American bank Morgan Stanley declared its interest; Fidelity went even further and began offering corporate clients cryptocurrency trade and custody services. Most likely, other companies will also pick up this trend.

Cryptocurrency industry still has plenty of room for growth.

Although cryptocurrency in its current form already solves many of the problems associated with the movement of funds, the global use of the blockchain still faces some difficulties that need to be resolved.

Developers are trying to optimize blockchain platforms as much as possible and adapt them to everyday use. For example, the Ethereum team is actively working on scaling, Bitcoin developers are developing Lightning Network to process a large number of transactions .

It can be said that the current market capitalization reflects the state of crypto projects. Currently, only 36 of the 100 largest cryptocurrencies have working prototypes. In other words, the industry is still in its infancy.

Another opportunity for growth is related to the current nature of the cryptocurrency market. To a large extent, it is not influenced by real technical progress, but by speculation and investor sentiment. It will take some time for the market to mature and become more dependent on actual development.

The blockchain technology will be improved, investors will gain experience, so in the future we can witness an exponential growth of both real use and market capitalization.

Cryptocurrencies can act as a “safe haven” during crises

One of the main problems of the existing financial system is that people are forced to use the currency of the country in which they live. Some were lucky to be born in countries with stable financial systems, others were in a less favorable position. The authorities can experiment with their financial system in any way they want, but the population has no choice but to continue to use the national currency.

Cryptocurrencies do not belong to any country and are not controlled by the government. They are not physically fit; to store them easily and safely – it is enough to know the address of the wallet and the secret key (you can also use a hardware wallet ). At the same time, they help protect capital from crises. Fresh examples include Venezuela and the economic crisis in Zimbabwe.

Usually, Bitcoin is used for this, the total supply of which is limited to 21 million coins. It seems reasonable to keep wealth in the largest and most famous cryptocurrency. If Bitcoin will be universally recognized as a repository of value, the demand for it will increase significantly. People will accumulate and store cryptocurrency, selling it only as a last resort.

Many companies are introducing blockchain technology into their business.

In July 2018, Forbes magazine counted 50 public companies experimenting with the blockchain . The list includes American Express, Oracle, IBM, Facebook, Comcast, etc.

The interest of these companies in the blockchain is a positive signal for the future of the industry. Although this process does not directly affect the cost of existing cryptocurrencies, the successful use of the blockchain for other purposes will have a side effect and stimulate the spread of cryptocurrencies as a whole.

Given that many companies are already considering the integration of the blockchain into their operations, in the next 5-10 years it is logical to expect a significant increase in corporate interest in this technology. Enterprise-oriented projects, as well as platforms that provide blockchain-as-service services, will only help accelerate the massive corporate adoption of technology.

Conclusion

Whether we like it or not, at some point in the future, the existing financial system will change completely. Remember the expression:

"Change is the only thing that is constantly in our life."

The time of bankers has passed, and soon the cryptocurrency era will come in the financial sector. As Anthony Pompiano, once said:

"Days of bankers are numbered."