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The Case For Crypto

Bitcoin, ethereum, dodgecoin and many more digital currencies have been gaining traction over the past year. So, why is there so much more buzz around the technology and why should you consider adding to your portfolio?

In a simple way, you can think of investing in crypto like investing in a growth technology company. The value in many of these crypto currencies increase as the user base grows; similar to how high growth companies like to show that their user base is growing at a rapid clip. Additionally, many of these coins have a finite supply which when compared to traditional fiat currency means that money can’t constantly be printed. The “rarity” of cryptos such as Bitcoin have seen the value of these coins skyrocket in the past year as more people rush to get their hands on them before the well drys up.

But, this isn’t just a simple supply issue that can make crypto worth holding onto. Many crypto currencies have a use case which is described in the white paper. You should find the document to understand more about the purpose of the crypto you are interested in. If there isn’t a paper, that’s is a serious red flag and you should think twice before investing in that. An interesting example currently is with ether which can work with smart contracts. This technology has huge potential and as a result, the currency value is increasing.

It’s hard to know which crypto currencies if any at at will be the largest in market value in future. But, we highly recommend having some exposure and diversifying between a wide variety of different coins. Technology is rapidly changing and there is large potential, so bet on a pool of different coins and hope that one of them at least takes off.

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