Investing in cryptocurrencies

Bitcoins, Ethereum and dogecoin these names are not very new for us. We have been hearing these
names since a long time now. Thanks to billionaire Elon musk who is making cryptocurrencies a hot
topic even today. And why not benefits from cryptocurrencies are many from decentralization of
monetary system to safety and security of transactions. However, I have failed to see crypto
currencies performing the role of an actual currency. however, cryptocurrencies have failed or we
can say has not yet been able to perform the most basic function of money i.e., a medium of
exchange.

However, the other function of money which is “store of value”, it has been very successful in that.
People nowadays buy cryptocurrencies as investments. Now how safe is investing in
cryptocurrencies? As per my opinion investing in cryptocurrencies is like a suspense thriller movie,
you never know what is going to happen next. For comparison in stock market, we can apply logic in
most of the cases that why the stock price is increasing, there are factors that affect price of stock
like companies’ profitability and all. But in crypto market you can never know what might trigger the
prices. May be some influential person puts bitcoin in his twitter bio and next day bitcoin prices may
shoot up. Even the stock market becomes unpredictable but in crypto market you can never ever
predict what is going to happen. This make the crypto market very much riskier as there are no
fundamentals on the basis of which the markets is reacting. It becomes a pure demand and supply
game where even market manipulation is possible if you have enough money.

Thus, I would like to conclude that investing in cryptocurrencies is still a very new thing. Right now,
we don’t know much that how this new system works. So, people may invest in cryptocurrencies if
they are really desirous of doing so or they may put their money in other investment options where
they may at least be able to understand the nuances more effectively.