Is it a good idea to invest in Cryptocurrencies and Blockchain?

Blockchain is a paradigm shift in the fourth industrial revolution. It has fueled the process by a massive margin. In the coming future, you will see blockchain being used in almost all big organizations. It is already disrupting Healthcare, logistics, supply chain, Finance, Governance you name it and it is right there. From organizations like JP Morgan, Carrefour, IBM, Walmart, Maersk, Goldman Sachs, Mining giant BHP, UPS, FedEx, Unilever, Nestle and so on – all exploring blockchain. The applications of Blockchain are simply endless.

Currently, we are going through experimental phases of Internet of things (IoT), Web 3.0, Artificial Intelligence, autonomous cars, sustainable future, minimal use of resources, Robotics, Cloud Technology, Augmented and virtual reality and more. We are talking here about a complete transformation. And this is not possible without a trustless system at large. All of this makes the fourth industrial revolution grow on exponential basis. If we are going to deal with this sort of transformation and responsibility then we can NOT trust centralize systems to handover such immense control or we will probably create some sort of SkyNet from “The Terminator”.

What is Blockchain?

Blockchain is a decentralized peer to peer network. Where each NODE has a copy of the ledger. This ledger is basically a growing list of data blocks that are linked together. On October 31, 2008, Satoshi Nakamoto released the Bitcoin White Paper outlining a pure peer to peer electronic cash/digital asset transfer system. This is the first popular implementation of Blockchain and is attributed as birthing today’s Blockchain industry.

What is a cryptocurrency?

Cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely. A cryptocurrency (crypto) is a form of payment that can circulate without the need for a central monetary authority such as a government or bank.

Cryptocurrencies can be exchanged for goods and services, though they often are used as investment vehicles. Cryptocurrency is also a key part of the operation of some decentralized financial networks, where digital tokens are an important tool for carrying out transactions.

The most popular cryptocurrency, Bitcoin, has had a historically volatile price. In 2021, it hit an all-time high above $69,000 before falling back.

Should you invest in Cryptocurrencies?

Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.

Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation. Cryptocurrency is an incredibly speculative and volatile buy. Therefore, you may lose all your investment or gain incredible profits.

Crypto trading is the current rage and may even yield potentially high returns. The market is still in its infancy. Investing in something that’s new comes with challenges, so you must be prepared for ups and downs, including some dramatic swings.

Indeed some cryptocurrencies do present as viable investments and one should not be so naive to ignore them completely. Find out our top 5 cryptocurrency list for 2022 to invest.

Original link: Your go to Crypto place