5 Reasons To Invest In Cryptocurrency
1) You could play a role in the development of a concept that has the potential to change the world more than the internet.
2) It is difficult for most people to pick winners in the early stages of an industry’s development, but there are fortunes to be made for those who can choose wisely.
3) To support increased transparency and accountability in our monetary system.
4) To promote economic inclusion for people who are unbanked, under-banked, and for those who are subject to an unstable or corrupt monetary system.
5) Making a small investment in a well managed cryptocurrency to diversify your portfolio.
5 Reasons Against Investing in Cryptocurrency
1) Due diligence is all but impossible with unknown stakeholders on anonymous financial networks. You never know what kind of groups you are investing in, and what activities they are associated with. Unless there is transparency and trustworthy leadership, it would be foolish to part with your money and speculate on this type of investment.
2) Speculators have inflated much of the industry, resulting in a massive altcoin bubble. According to www.coinmarketcap.com there are well over 150 cryptocurrencies with a market capitalization over 1 million USD. Since only a few have anything to back these rising valuations, when the bubble pops, there may not be many left standing.
3) A lot of cryptocurrencies claim to be the next big thing, with no substance to back it up. Avoid investing in people who have not yet delivered a product that has a viable real world application.
4) There is a significant number of bad actors, albeit at a lower rate than in fiat currencies around the world. Wherever there are gullible investors to exploit, and easy money to be made, crime is sure to follow.
5) Since it is such a new technology, unforeseen flaws, glitches and potential exploits are likely yet to be uncovered. This is especially true as the industry innovates and continues to build off of Satoshi Nakamoto’s original concept: Bitcoin. The more complex a system is, the more potential points of failure there are.