The power and influence of blockchain technology is everywhere in the late 2010s, but nowhere is it more felt by businesses as in the rise of cryptocurrency. Many investors are joining the bandwagon brought about by its most successful manifestation: the Bitcoin. But should you also join the parade?
Websites dedicated to bitcoins are everywhere, explaining both the basics and the complicated processes that come with cryptocurrency, enticing even more people to try it and invest in it. The number of people devoting their careers to Bitcoin mining is increasing by the minute, many investing in high-end processors and graphics cards just to own the online currency. And it makes sense, too: a single bitcoin is now priced at $8,856.
Image source: medium.com
However, keep in mind that it’s still a new technology, with no historical basis for volatility and for tracking success. In short, you could still lose all your hard-earned money. That said, aside from Bitcoin, the two other viable options you can invest in are Litecoin and Ethereum. However, if you really want to put money on one cryptocurrency, Bitcoin is the way to go if only for prevalence of use.
Conversely, the popularity of Bitcoin might be its demise, as if the online currency does prove to be successful—and Bitcoin gets a stranglehold of the market—less popular online currency with lower market caps might be the ones to stick around. Again, the current preference for bitcoin does not guarantee that it will be the one to survive these early years.
Image source: bitnewsbot.com
John Kang is the chairman of LM Group Holdings, Inc., with headquarters in Lake Forest, CA. He is also an investor in startups and established companies. From 2001 to 2010, he served as chairman of Liquidmetal Technologies, Inc. More investment insights here.
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