Somewhere towards the end of last year, a small news piece about a barely known cryptocurrency became viral and was read by many people online. It was called the Ripple Coin (XRP) and at that time, its price was only equivalent to $1. However, just a few months later its value has ballooned to $ 2.45. Many more similar cryptocurrencies are expected to double, triple and even quadruple in value this year.
It will come as no surprise that many new cryptocurrencies will make an appearance this year. There are tons of venture capital companies all over the world starting their own digital currencies. However, whether any one of them survives is another question.
Many of these startup capital ventures have been labeled insane, but they seem to have no problems securing investment, even if they deal in shady products. Although it?s not easy to begin an initial offering, thousands upon thousands of companies have done exactly that. They have to rely on angel investors to pay upfront capital, but now the Initial Coin Offering (ICO) market has ballooned into a $650 million industry.
In the early days, there was only about 6 cryptocurrencies, but now the number has increased exponentially. Many of these new companies are offering goods and services that are so new, not many people understand or even use them. This is why cryptocurrency investors are considered a bit nutty.
However, these investors are now having the last laugh. If an unknown cryptocurrency like Ripple Coin can double in value within a few months, then there?s a chance for every other one to double too. These promising chances are why investors are keeping a look out for lower valued coins.
Although losing money on an investment is a common occurrence, no one has actually lost any money while investing on Bitcoin. Bitcoin investment has yet to produce anyone who has lost their life savings on say, some stocks that have plunged tremendously.
So far, the Bitcoin trend has never disappointed any of their investors and this trend is definitely set to continue in 2018. In the opening day of trading in January 2018, only three out of the top 20 cryptocurrencies were in the red. Even previously obscure coins like those issues by Tron and China?s NEO enjoyed an increase of over 30% in value on the first day of trading alone. Tron?s price on the day was 6 cents while NEO, which is China?s answer to Ethereum, sold for $100 per coin.
Back in 2012, one Bitcoin was worth only $15 but now only six years later, it?s worth $15,000. This can also mean that coins like NEO could be worth 3000% more by the time 2021 comes around, just like the trends predict. Many investors are willing to put their money into cryptocurrencies based on this trend, and are not afraid of small devaluations of $100 which are considered insignificant.
Vitalik Buterin is one example of how investing in Cryptocurrencies can be extremely rewarding. He?s the founder of Ethereum, one of the earliest coins to join the crypto and blockchain market. Needless to say he?s now a multi-millionaire.
Joining him is Pavel Durov, founder of Telegram, a messaging app. Durov?s app is gaining popularity for the fact that it doesn?t store any of the users? messages. It?s the messaging app most favored by Cryptocurrency traders. He?s also planning to launch a coin tied to his app.
The value found in cryptocurrencies now is staggering. Ethereum itself sees as much as $3 billion being traded in a day, and its market capital is hitting $81.12 billion. This makes it way more valuable than even the largest oil and gas companies in the world, like Brazil?s Petrobras. Apart from Ethereum, Bitcoin and even Ripple has a higher net worth than Petrobras.
Bitcoin?s value cap is reaching that of multinational companies like Chevron and Ripple?s value is very near Goldman Sachs?. Even unknown coins like Cardano currency is expected to go up about 500% this year since it was first introduced in late 2017 at a ICO of $0.77. This is because once it?s added to a regulated trading platform, it will begin to appreciate.
Although many coins like Ethereum are still working out small issues and kinks in their system, this is seen as not a big issue. The cryptocurrency market is just not the same as E-trading, which is an online middleman platform connecting investors and the stock exchange.
Instead, cryptocurrency and blockchain technology consists of personal trades between individuals or companies. Some platforms can take very long to verify the identities of the traders, which is a process that can take up to a few days. Some trading platforms may even be slightly unstable, like Kraken and Bitstamp.
Despite all these issues, as well as the claims that there?s a crypto bubble, experts like Naeem Aslam, chief market strategist for ThinkMarkets in London believes that cryptocurrency is here to stay. In fact, he?s advising people not to stay away.
He?s quoted as saying ?..if you can afford to lose an amount which won?t make any meaningful difference in your life, then by all means, dabble.? This means that if you have a few hundred dollars to spare, go for it. Either way, you?ll stand to gain in the long term.