Is Investing in Crypto Worth It?
INTRODUCTION
I researched whether investing in crypto is worth it, because some people debate that it is while others are completely against it. The reason why this is a vast debate topic is due to the fact that there are a lot of downsides when it comes to. In 2022, only 21% of Americans feel comfortable investing in cryptocurrency, according to Bankrates September survey. That's down 35% in 2021. This decline shouldn’t be as surprising though, because around 2 trillion dollars has been wiped off the market due to cryptocurrency. But some people decide to invest in it because it gives you a chance to make a high profit overnight. Other factors that people debate are whether or not crypto is going to be in our future, and cash is going to be completely replaced.
Why do people not want to invest in crypto currency?
In 2022, only 21% of Americans feel comfortable investing in cryptocurrency, according to Bankrates September survey. That's down 35% in 2021.The decline is unsurprising, considering nearly $2 trillion has been wiped off the entire crypto market since November 2021. Investing in cryptocurrency is like you’re buying an arcade token and hoping someone will pay you more for it later on. It's for this reason that legendary investors such as Warren Buffett won't have anything to do with cryptocurrency.
Can cryptocurrency replace cash?
Crypto is unlikely to replace traditional currency according to the Bloomberg article because the top US bank regulator stated how banks should proceed cautiously when they experiment with the asset class. Crypto assets are apparently proved to be so volatile, therefore unlikely to grow into money substitutes and become a viable means to pay for transactions.
Why is crypto currency a debated topic?
Bitcoin is controversial because critics point to cryptocurrency’s role in criminal activities and the absence of legal recognition as proof that it is “rat poisoned square.”Governments are eyeing bitcoin's advance, like El Salvador, have adopted it as its currency.
To understand why governments debate about cryptocurrency is because they prefer Fiat currency. Urs the full faith and credit of a government, therefore they control fiat money. But with bitcoin, since the currency is decentralized the government doesn't like it as much therefore not making it a currency that will on-go in the future.
By Prasaha Punna