Is it still possible to become Rich with Crypto?

Crypto-Currencies have created such a buzz, in the last couple of years, that it has become almost impossible to ignore them. Bitcoin, the so called "First ever Cryptocurrency" has caught the attention of masses, challenging the very ways. Institutions are doing their business. Q4 of 2021 has already witnessed a sizeable number of Crypto Millionaires. Crypto-Currencies like Bitcoin, Ethereum, Solana are soaring to their all time highs, indicating the ascension of another bull run. But the average conventional investor is still pretty speculative of such gains. With so many stories in circulation of people getting filthy rich with crypto, the average investor is both excited and weary.

Afterall, Bitcoin was in deep waters, just a couple of months ago. Why? Because Tesla had refused to accept Bitcoins as a form of payment, citing environmental concerns. A move which Tesla had signed up for a few months ago. As a consequence, Bitcoin crashed and so did the whole crypto market. Large sums of money were driven away from the market. China did its bit too, by putting an harsh ban on the mining and use of any cryptocurrencies' for the foreseeable future. But the launch of the Bitcoin ETF in the New York Stock Exchange, has suddenly revived the market. Bitcoin along with other mainstream currencies are soaring for all time highs.

Outperforming the Elites

Bitcoin

If we are talking about performance, how can we possibly miss Bitcoin. Since its inception Bitcoin has grown into thousands and thousands of percent of what it was. To put into perspective, if you had invested a $1000 into Bitcoin a decade ago, your investments would have now turned into more than $15 Million today. That being provided you never sell in the meantime. Despite its monumental rise and fall within the last year, Bitcoin has still managed to surge 372% this year.

Ethereum

Next on the list is Ethereum, the 2nd largest cryptocurrency in the world. Seldom called the next big thing, Ethereum with its smart contracts and dApps (Decentralized Application building ecosystem), is well and truly a technology worth admiring. With more than 500% growth in the past year, Ethereum might soon dethrone Bitcoin as the apex cryptocurrency.

Dogecoin

This one's intriguing, Dogecoin was initially released as a meme coin, citing crypto enthusiasm in 2015. The project was literally a fun thing for the creators, who themselves made it as a joke. Dogecoin might not have a strong suit when it comes to real life use-case. But for those who had invested in it last year would have seen astronomical 19000% gain on their investments. Besides, Dogecoin is one of the most popular currencies in the crypto space, due to its community level passion and support. Elon Musk, the World's Richest man has been one of the key figures, who has repeatedly pushed the meme currency's name on many of his social media messages, causing a major push in its prices.

With such high percentages of gains already, some financial pundits reckon that the Crypto space is either overhyped or has reached its potential limits. As we all know that Cryptocurrency prices are driven purely by speculation, by the demand of the general investor. Which is what makes it difficult to estimate "What price is appropriate for a particular crypto-currency. While a very selective few have made it big on the crypto circuit, most have lost their money during the last bull run. So, have we missed the crypto train? Is the crypto-currency market done and dusted with all its gains?

Crypto is still in its initial boom

The Crypto industry has already hit the trillion dollar valuation, but it is only now that institutions have started looking into it. Yes, that's true Crypto boom may still be at its baby stages, eyeing a long and sustainable upward movement. Several Financial institutions have already added crypto-currencies into their portfolio's. Tech companies are not too far behind as they look to capitalise on this new form of technological masterpiece. Also, another important aspect for Cryptocurrencies' is regulation. Recently El Salvador became the first nation to make Bitcoin as a legal tender, since then, its regulatory bodies are constantly working on laying a framework for the currencies use. Several other countries are working or atleast eyeing for ways to regulate this new form of technology.

Most of the Crypto-currencies are backed over a revolutionary technology named "Blockchain", which is the root cause for the decentralizing property of several currencies. The promise of Decentralization of almost everything has been the biggest advocate towards crypto popularity. Regulation would mean, that the total decentralization promise would be compromised, which angers a sizeable number of people. But crypto enthusiasts also believe that regulation might do more good than harm. A regulated and certified asset might bring trust, a key factor among retail and institutional investors.

Future seems promising

Several countries are now eyeing crypto regulation as a necessity, and soon regulatory bills might be presented in several parliaments. Data suggests that more than half of the world's largest Banks are either directly or indirectly linked into cryptocurrency projects. But conservative wealth managers, which include the state and local pension funds, have largely been on the sidelines. This is where the real money is stored in, price volatility and uncertainty towards regulation is what has stopped them from venturing this exciting market. Once these conventional fund managers are integrated into crypto, high liquidity would be observed. And what would come next is pure sustainable growth.

In short, you might have missed the Bitcoin train, but there are surely several other trains to catch upon at the other stations. Nobody knows the future, but things as it seem now are forecasting a bright, bright future for this exciting piece of tech. We now have more than 10,000 currencies to choose from. In no way would all of them be successful, just like not every start-up would end up as being an Uber or Instagram. Don't jump upon if you are just here to make money, invest only if you understand the tech or idea behind it, and money would eventually flow. Invest on the vision of the creators, grind it out hard, believe in it. Don't listen to the Millionaire stories, don't listen to the Billionaire himself. You're simply gambling off, if you don't understand it.

This post was originally posted in Justlogicallyspeaking.in

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