“Cryptocurrency is this year’s bear market, offering investors an opportunity to purchase cryptocurrency at only a fraction from where it was trading at the end of last year. Currently, Bitcoin is 70 percent off of its highs. Historically, Bitcoin has seen drops over 80 percent and came back seven times to achieve all-time highs. There is a good chance that this will occur again.” - Dean Anastos, CEO of Blockchain Developers
While an overnight rise of Bitcoin’s value to $20,000 is improbable, the market did see a growth of 4 percent since the news that the asset-management firm, BlackRock, has a new working group to look into the cryptocurrency industry (Read the story about the market-rise due to BlackRock’s involvement).
Experts in the field believe that since several other institutions are also venturing into cryptocurrencies, investor confidence is increasing, leading to a crypto-value rise.
Kevin Barry, the Founder, and CEO of Myntum, believes that the SEC’s announcement that digital currencies are not securities will actually allow for additional mainstream investment. Businesses and individuals who wish to purchase cryptocurrencies can now do so knowing that the currencies are not a security.
Additionally, the digital currency market has no time-restriction. The cryptocurrency market stays open 24/7, unlike banks and Wall Street which are open only until 4:00 pm, Monday through Friday. The option of being able to trade at any time of the day is an important long-term benefit.
In the years to come, cryptocurrency adoption is expected to be much higher than the current 0.2 %. The adoption has been doubling by 100 % a year, according to Patrick Gray, CEO of HashChain Technology. If the market can keep up this rate, the next few years has immense potential. Occasional drops do not permanently impact the market, considering the growth rate.
Many investors fear the volatility of the crypto-market; however, traditional investments are not exactly stable, either. Ray Youssef, CEO of Paxful says –
“With continued U.S. interest rates tightening, it is sure to put downward pressure on gold and traditional safe-haven assets. Crypto could be the non-traditional investment that performs well in 2018/2019.”
The digital currency market provides an opportunity to diversify asset classes and has the highest ROI of all alternative investments.
In other words, not only is it ‘not too late’ to invest in cryptocurrencies, 2018-2019 is the perfect time to invest in cryptocurrencies.