Blockchain and cryptocurrency burst into our lives truly like a rocket. A year ago, at about the same time, in general, only a narrow circle of professionals knew about the digital assets.
How to properly invest in a new instrument?
Earlier, just a few people knew about bitcoins, but only a year passed and everything changed. We have seen how the creator of Ethereum, Vitalik Buterin, met with the first person of the state, and in the capital each month held dozens of conferences about the tokens, ICO and other hitherto unknown phenomenon.
A symbol of the past 2017 can be called the meteoric rise of Bitcoin and its equally unexpected collapse. But this is the tip of the iceberg, and its underwater part - structural changes. It is important to understanding that to predict how the market will develop cryptocurrency on the horizon of the next few years.
Most importantly change is that, no matter how bitcoin jumping course, a number of countries that developing cryptocurrency - already part of economic reality. They have been used in electronic commerce and in payment services, often used as a payment instrument for investment in real estate or for financial transactions.
There are advanced exchanges for investments in the crypt o industry, which thanks for blockchain technology can bypass the giants of stock exchanges. A striking example - Safinus platform that allows beginners to safely invest fiat money into ICO projects or cryptocurrency without special knowledge in crypto industry.
A virtual reality
However, the crypto market is virtual and speculative by nature. Cryptocurrency not provide real financial assets correlations with such basic classical economic concepts as gross domestic product, national income, exports and imports.
The US dollar is at the heart of the power of modern high-tech US economy, the ruble - oil and gas reserves of the country, which will last for decades, if not centuries, the yuan - a dynamic consumer market of half a billion people in China and throughout the world beyond.
Bitcoin, Ethereum and all other alternative cryptocurrency (collectively called altcoins), on the other hand, were born in the depths of computer networks. In Venezuela just recently governments tried to tied cryptocurrency to oil, creating El Petro, but please note that this happened in the national economy which is now located at the peak of hyperinflation, that is, in a country where money every day loses its value.
However, the there is a financial frameworks in cryptocurrency. The same Bitcoin has a finite amount of money (21 million coins), from which it is now produced over 12 million and mathematically reasonable end date for completion of mining - in 2140 will be produced the last Bitcoin.
This means that in contrast to the classical money currency. Cryptocurrency not subject to such a method of depreciation, as a money issue - no one can turn on a virtual machine is similar to the printing press in the world of classical money and dump the course of cryptocurrency.
Not only multiply, but also to keep
Another weak spot of cryptocurrency - the question of the safety of the investments. Recently there was one issue that have done a lot of noise about how because of an error of code developer the company Parity was forced to "freeze" large sums placed in the second most popular cryptocurrency - Ethereum. Code developer, allegedly accidentally deleted database that was used with other customers e-wallets, direct damage - at least $ 160 million. It is hard to deny that modern cryptocurrency far from ideal.
But still it seems that opponents cryptocurrency confused difficulties of crypto market initial development with long-term trends. The laws of economics say that any new formation in the economy or politics does not occur immediately, but gradually: it mutates in the old system, gradually transforming it and change at the same time itself.
From theory to practice
On the basis of what has been said, let me give you some practical advice. First of all, diversify investments.
The principle of "not putting all your eggs in one basket" is correct at all times: in the portfolio should be and funds in bank accounts, stocks and bonds, and real estate, and, of course, cryptocurrency.
Second, before you start to invest, acquire a minimum knowledge base on the subject, at least of the elementary safety reasons, not to be repeated, for example, the fate of one of the enthusiast cryptocurrency, which showed a key from his electronic wallet on the TV channel, and was, of course, immediately robbed by hackers.
And, thirdly, did not join the majority of investors. Look not only at Bitcoin and Ethereum - who knows if they are not by some transitional forms cryptocurrency, which will give way to new ideas. It is important to keep track of new trends in the market of cryptocurrency that correspond to its transition to a qualitatively new era.