Are Cryptocurrencies a Good Investment?

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Cryptocurrency has been a trending topic especially after seeing Bitcoin ($BTC) hit a new record high of $79,999 as of this week. The recent cryptocurrency bull run (increase) has also led many alternate coins under Bitcoin’s blockchain to grow in a proportional fashion. This is the power of the blockchain, when Bitcoin increases all subcoins under it increase as well, and the reverse is true as well. Cryptocurrencies are a relatively recent phenomena relative to the traditional stock markets. What differentiates cryptocurrencies from regular stocks is the fact that cryptocurrencies can be traded 24/7 non-stop and are decentralized from federal banks, meanwhile stocks markets are only open from 8:30 am-4:30 pm EST and heavily fluctuates from financial, political, and legal news.

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** We are not suggesting that cryptocurrencies are in any fashion better than regular stocks but rather pointing out the main differences. **

With that said, cryptocurrencies being decentralized (not regulated by federal governments) and tradeable 24/7, means high volatility and uncertainty. Any crypto expert you’ll encounter can make educated speculations based on trends and graph analyses, however since cryptocurrencies do not represent revenue growth, scalability, Price/Earnings ratios, Debt/Equity ratio, or any real measurement that would determine the value and future of a traditional stock. Hence, all future predictions for cryptocurrencies are highly speculative meaning a cryptocurrency can shoot up and come back down twice as fast by being traded for much longer periods than a traditional stock, and much less control from external agencies to regulate the price from fluctuating like a six-flags roller-coaster.

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However, many can see a bright future for cryptocurrencies in part due to the money printing that has been going on during the pandemic especially in the United States and Canada. Since Cryptocurrencies are decentralized, they would be immunized from the effects of inflation by having their own digital worth that is completely separate from any currency available.

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Here at Raised Wealth, we do see a bright future for cryptocurrency, in part due to the digitization of the world resulting from our pandemic, Amazon making international shipment to be delivered in one day, Kevin O’Leary recently jumping on Bitcoin after being heavily opposed to it, and Elon Musk allowing the purchase of Teslas with Bitcoin.

We all heard of the Bitcoin bull run in 2017 and the quick decline until 2020. What differentiates both these bull runs is the global conditions were much different, in part because we did not have or ever had a pandemic which locked up a majority of the world at home and stalled economies on a macroscale. Prior to 2020, there was relatively no use to cryptocurrencies other than “fast-cash” or get-rich-quick schemes, and money laundering uses. Hence why Kevin O’Leary and many other philanthropists, shun away from it and didn’t see a future in them. However no one could have predicted the imminent use Bitcoin would have and as part of the potentiality of devaluing our Fiat money (USD,CAD,EUR,etc..) from excess money printing, the urgency for a currency that would be immune from the inevitable effects of inflation and maintain its value is ever more needed.

There is a lot to uncover about Cryptocurrencies and what the future has in store for them, however, it has proven to be an adequate long-term investment worth looking into. Again, this is not financial advice, simply an observation from their historical trends. We suggest reading the books listed hereunder to get better acquainted with Cryptocurrencies and also to deepen your understanding of the blockchain ... knowledge of the market is power in the market.

Mastering Bitcoin: Programming the Open Blockchain

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond

Blockchain Revolution

Cryptocurrency Investing For Dummies

The Bitcoin Standard: The Decentralized Alternative to Central Banking

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