A few years back, investing in crypto was a no-brainer. BTC was going strong, and everyone was sure that it would be just a matter of time before it reached that psychological barrier of $100k per coin. Today, people are no longer as sure.
Sure, the cryptocurrencies are bouncing back compared to where they were after the whole FTX fiasco, and the market seems to be more resilient than originally thought. The problem, however, lies in the fact that public opinion is no longer as certain as it once was.
Today, many people doubt cryptos’ potential and future as a concept. Here are the top four reasons why you shouldn’t dismiss cryptocurrencies quite yet.
1. Market growth potential
Despite their increasing popularity and market value, cryptocurrencies remain a relatively young asset. This youthfulness presents a significant opportunity for growth, particularly in the year 2024.
The growth potential of cryptocurrencies is unparalleled, which was clearly shown both in 2017 and 2021. Now, while it’s uncertain whether this level of success could happen again, even a much smaller scale would cause an incredibly proportionate success (compared to your initial investment). For this, you would have to look into some of the most promising cryptocurrencies of the year.
In fact, Michael Graw says that the potential for large gains is one of the biggest reasons to invest in crypto and was a key consideration when making his shortlist for 2024. He says that while cryptocurrencies are a volatile asset class, they have the potential to generate large gains.
This is just the tip of the iceberg. While some of these coins are still relatively unknown, they’re already on the radar of specialists and high-end reviewers. However, what about discovering coins even earlier? What about presales and ICOs? These are far riskier, but the potential growth is even higher. It all comes down to how much you’re willing to risk.
Another big reason why these cryptocurrencies are likely to rise is because they offer financial services to unbanked and underbanked populations of the world. This is a huge market that represents an untapped potential.
More and more people are learning how to diversify their crypto investment (spreading across different coins, on different blockchains, and with different intents). It’s no longer just about BTC and ETH.
Ultimately, we should also talk about the real reason why these cryptocurrencies have such a high market growth potential because of technological advancement. Speaking of which…
2. Innovation and technology
The growth of cryptocurrencies is not a static phenomenon. Instead, it is fueled by the continuous emergence of technological concepts such as blockchain, DeFi, and smart contracts. These innovations are set to persist and drive the industry forward.
Blockchain technology is the big one, and with more and more services and industries relying on it, cryptocurrencies are gaining significance by default. Technologies like AI, VR, or augmented reality are growing rapidly and most of this is taking place, hand-in-hand, with related cryptocurrencies.
Since they operate on the cryptocurrency system and need the combined computing power of the users in question, the entire crypto industry has more leverage than ever before. The utility and popularity of blockchain is only going to grow in the future.
While NFTs had a stellar rise and a rocky season afterward, it’s undeniable that the potential behind this concept is huge. Look at it this way: the NFT, as a concept, has the potential to solve problems regarding the copyright of IP forever. With so much content being produced on a daily basis, the market potential for NFTs is nearly limitless.
Compared to the rest of the financial world, cryptocurrencies seem to be incredibly scalable. With traditional bank transactions, there’s always a limitation about the amount of transactions or the number of transactions that you can complete within a day. Both cryptocurrencies and DeFi, in general, are a lot less restrictive.
3. Convenient asset
Investing in cryptocurrency is not only a potentially lucrative venture, but it is also incredibly convenient. With just a smartphone, you can access these assets anytime, anywhere, simply by reaching into your pocket.
The first thing worth mentioning is that cryptocurrencies are great for international transactions. This is what makes them so great for remittances. People who migrate economically often send money back to their underdeveloped homelands. These are often areas that are unbanked or underbanked. This means that cryptocurrencies are either the best or the only way to send money back home.
The fact that cryptocurrencies are great for sending money abroad is also amazing for digital nomadism. This is especially the case when it comes to crypto passports. Due to remote work, people no longer have to be location-bound in order to get access to top jobs in their industry. This easy way of sending money and avoiding unfavorable exchange rates makes this way of life even more convenient.
Another thing worth mentioning is the fact that this asset is incredibly easy to control. You get all the advantages of mBanking and more. You can check your assets via your phone, sell them, transfer them, and more. Most importantly, you can do this while staying completely anonymous. You don’t even have to give your real name to create a crypto wallet.
Most importantly, marketplaces and crypto exchanges are getting better and better. Since there’s no longer an exchange monopoly, the exchanges are rapidly improving in order to stay competitive. For individual users, this is an amazing opportunity, and there was never a better time to be a user.
4. Rising acceptance and adoption
In the past, crypto had a very niche use. It was merely a form of money that couldn’t easily be traced, but today, it’s something completely different. Today, you can use cryptocurrencies to buy things online, and it’s only a matter of time before, via m-payments, you’re able to buy with cryptocurrencies even in person.
Most importantly, more and more employers are paying via crypto, and a lot of people prefer to get paid this way. This is their way of reducing the amount of money lost on transaction fees.
Also, since the modern workforce is global, this is a way people can actually get paid without having to hassle with too many exchange fees. The problem is more complex than you know. You see, most banking apps don’t just exchange one currency for another. Instead, they may use an intermediary currency, making things even more complex in the process.
For instance, you may want to get paid in EUR with the intention of converting it to your local currency; however, your employer only pays in USD. So, they pay you in USD by converting it to EUR; you receive the EUR and then convert it to your own currency—the number of exchanges (each with a rate that’s highly unfavorable to you).
Moreover, in the past, the lack of adequate payment methods kept you from many online moneymaking activities. Fortunately, this is no longer the case. Now, finding a convenient way to get paid is no longer as big of a challenge, which means that you have more opportunities.
Cryptocurrencies fill a very important niche, and their potential is virtually limitless
No, cryptocurrencies are not just digital money. Their potential is vast, nearly limitless, and with each technological advancement, they become more and more compelling. Moreover, they’re a relatively new asset (they have existed only since 2008), which is why it’s normal for people to be skeptical of it.
The longer they’re around and the more instances of disasters and bouncing back people see first-hand, the more they’ll trust crypto. Like with any traded asset, the more people trust in it, the more valuable it gets. It’s that simple.