Why are People So Much Interested in Cryptocurrencies?

If you would have invested the sum of $ 1,000 in Bitcoin in August 2010, seven years later of it would have been approximately $ 50,000,000! So you understand that for professional Wall Street investors as well as retail investors, this return on investment is far too attractive to ignore.

Bitcoin is not the only cryptocurrency to have attracted investors, there are many other cryptocurrencies like Ethereum, Dash or Ripple and more than a thousand more that have also was created and aroused interest among investors. Is all this mass of cryptocurrency a reliable investment for your hard-earned money and is their growth certain and continuing?

The 2008 financial crisis is also one of the factors that explains why cryptocurrencies have attracted a considerable mass of investors in recent years. This financial crisis has exposed the imperfect system in which the banks are immersed. During this financial crisis, the entire global banking system was called into question by savers around the world and this is understandable since each time we want to send money from an account to bank to another or use a bank card, we trust banking institutions that are in fact vulnerable.

Unlike traditional currencies, the value of cryptocurrencies is not protected by any institution or central bank, this means that the price here is based only on what people think and whether they come to be afraid or a negative idea about it.

These digital currencies work on a peer-to-peer basis and are completely decentralized, they may not always aim to generate profit at first but are revolutionary in every way compared to traditional currencies, in particular thanks to the public register of transactions, i.e. the blockchain.

In 2016 the cryptocurrency saw its price go from $ 430 to $ 950, or more than 100/100 growth, the situation was even more impressive in 2017 since the price of Bitcoin rose from $ 950 to $ 20,000, or more than x20! After falling to a low of $6,000, the price bounced back even higher, shooting up to $64,000 at its highest point so far.

The rush of investors to Bitcoin and cryptocurrency can in part be explained by the volatility of these markets and how likely they are to provide outsized returns on investment, this has happened on numerous occasions and therefore has something to motivate. However, if the situation goes badly, investors must be extremely vigilant since they can see the value of a crypto melt like snow in the sun, which is why in the face of this instability it is advisable to always use a stoploss which limit the loss, a feature available on the platforms of many cryptocurrency brokers.