Why Cryptocurrencies Could Represent the Next Big Investment Push

Cryptocurrencies Big Investment Push

Cryptocurrencies are a rather new form of investment. The majority of experts consider Bitcoin to represent the first cryptocurrency to come into existence, as its roots can be traced back to 2009. However, this rather youthful market sector has also led to some serious returns over the years. Not that we are witnessing other currencies such as Ethereum and Ripple gain clout, it stands to reason that investors who are keen on leveraging short-term trading opportunities have taken an interest. However, there are a handful of other reasons why these digital transactions could very well take center stage in the years to come. Let us examine a handful of market factors which have led to their increased popularity.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q2 2020 hedge fund letters, conferences and more

The Undeniable Digital Wave

The digital retail community has dramatically increased in size over the past decade and this sense of forward momentum shows no signs of slowing down. Primarily driven by online consumer demand, many traditional brick-and-mortar businesses have transitioned into the virtual marketplace. Thus, it stands to reason that the ability to purchase items with the help of cryptocurrencies has become a viable option for many individuals. This is also why major online e-commerce platforms such as Shopify Plus have been eager to adopt such payment methods.

Recent Events

It is impossible to speak about the growth in digital transactions without also mentioning the recent global health crisis. As many stores have been forced to shutter their doors for extended periods of time, digital purchases have become even more relevant. However, we also need to look to the horizon. This trend has become so entrenched within modern society that even when things return to a so-called “new normal”, many consumers will remain loyal to their online transactions. If anything, the coronavirus outbreak has only served to speed up a trend that was already gaining pace.

The Trading Logistics Themselves

Trading cryptocurrencies likewise offers a fair share of advantages including:

  • Increased levels of anonymity.
  • Reduced transaction fees.
  • Instantaneous access to international markets.
  • The ability to adapt to changing market conditions.
  • Cryptocurrencies may be used as hedges against open-market volatility.

So, it becomes clear to see that these digital currencies are here to stay. The main question involves how many traders will adopt them into their current strategies. Some may still experience a slight amount of hesitance due to a lack of centralized regulations as well as the volatility that can sometimes be paired with this sector.

However, there is no doubt that digital currencies such as Bitcoin and Ethereum are becoming increasingly popular alternative forms of investments. Whether used to incur a short-term profit or as a means to enjoy long-term revenue generation, cryptocurrencies will continue to make headlines throughout the investment community.

This is why it will be quite interesting to see if future regulations may be more stringent due to a larger influx of investors. Either way, these assets are indeed interesting opportunities to consider.

The post Why Cryptocurrencies Could Represent the Next Big Investment Push appeared first on ValueWalk.