Cryptocurrencies or digital money seemed to have attracted investors’ attention more on the possibility of investing more in them. However, the hype is squelched by its volatile nature and could only be accepted as a medium of exchange, a computing unit for transactions that are done under digital conditions.
It is, however, undeniable that cryptocurrency competition has increased since the first Bitcoin was presented in 2009. All of that electronic money that came out in the later years has mainly carried the same function with only slight differences in their features.
And while we are talking about money, it is no joke to invest in crypto currencies. It may appear to be a lucrative business at the moment but wait until you know how much companies invest in digital currencies. Market capitalization for alone stands at more than 40 billion dollars, while several companies have a market capitalization of more than one billion!
Market capitalization represents the number of shares a company has multiplied with the current price of each share. So if a company has 10 million shares with a share price of $30 then, its total market capitalization is $300 million. With a market cap of more than $1 billion, one could only imagine how much investment was made to start their business!
While business is always accompanied with risks, speculators may as well look at the volatile nature of crypto currencies. Similar to investing in stocks, cryptocurrencies could give a big chance to double your investments overnight. You could purchase a crypto currency for $50 at the moment and earn double the next day with $100! No wonder some people believe it is wiser to invest in cryptocurrencies than in gold!
Despite all these, its remote nature is something to watch. We still have to give them ample space to grow. With its volatile nature, we can never tell when and how the digital currency market would collapse. But while the world continues to evolve into digital economies, it is not a remote idea that cryptocurrencies will eventually gain total acceptance and become a standard of measure and unit of exchange worldwide. As they say, “nothing is over until it’s over.”