Cryptocurrencies are increasingly becoming popular as an investment asset class. The industry has come with a lot of potential for investors, and those who know how to take advantage of it have over the years invested in them and some have recorded some success.
In fact, some analysts say it is becoming irresponsible to not have crypto added to any company’s balance sheet.
There could be many reasons why they think so, but the following are some of the reasons why you should consider adding crypto to your investment portfolio.
It doesn’t matter if you’re an individual or a company, these reasons apply to all, and you can modify them to suit your particular situation.
Hedge Against Inflation
One of the most recognized reasons for the popularity of cryptocurrencies is that they serve as an effective hedge against inflation.
Inflation is very real, and is eating away the currencies of many nations. Therefore if your investment is in fiat currencies, you can be sure that you’re losing.
Over the past years that cryptocurrencies have been in existence, the industry has recorded tremendous growth despite the widely mentioned volatility that characterizes the assets. Bitcoin for instance has grown from nothing to an all-time high of over $60,000.
For the early adopters, this is a phenomenal growth in value that no fiat currency can compete with. The same applies to some altcoins, some of which have even recorded bigger growth than Bitcoin in a shorter time.
One thing cryptocurrencies were created for was to take the control of money from the government and hand it to individuals.
This is why cryptocurrencies are uncensorable by design, meaning no one can just wake up and decide to seize your funds.
This is the norm in traditional finance, where a bank can decide to freeze your account at any time, taking over control of your money.
Crypto investors get to manage their own accounts, aka wallets. They also don’t need permission or approval from anyone to spend their assets.
This makes cryptocurrencies the best assets to invest in if you really wish to take full control of your investment and make it censorship-resistant.
It is Money
Crypto is money, and even though this is being debated, it remains true because you can use it to pay for goods and services. There are millions of merchants worldwide currently who accept cryptocurrencies as payment for their goods and services.
You may choose to spend your cryptocurrency assets by wallet to wallet transfer, or you can even use debit and credit cards to make payment where such cards are accepted.
This makes it unnecessary to convert your assets into any fiat currency that is suffering under inflation.
Easy to Manage
Cryptocurrency investments are easier to manage than traditional investments. This makes them an asset class for everyone. For example in traditional investment, you may require an asset manager to manage your investment.
While crypto investors can still use the services of asset managers, this isn’t mandatory and you can fully manage your own crypto portfolio.
All you need is a crypto wallet to hold your private keys. This doesn’t only give you full control over your own assets, it also eliminates the cost of hiring professionals to manage your investment.
Many people are afraid of managing a crypto wallet, but it is actually not as hard as it sounds. The trick is to never share your wallet information such as private keys and passwords with anyone.
One thing about cryptocurrencies is that they are accessible worldwide as long as you have access to the internet. This makes it the only investment asset that anyone from any part of the world can own.
It’s no wonder that people in third world countries are those most interested in cryptocurrencies, because they serve as a universal investment, as money, and assets they can easily manage.