Just a few years ago, when asked what investment is, the majority of people thought it was a bank deposit or buying a property with a subsequent lease.
Today’s generation is more advanced in investing. In modern society, it has become fashionable to talk about investments and discuss financial markets. People began to understand more about the pros and cons of various investment assets.
For example, confidence in the US dollar has seriously weakened, as people began to figure out what uncontrolled emissions are and what consequences it entails.
Or after making a couple of elementary calculations, we learned how to calculate the return on investment in real estate, which turned out to be not so reliable and promising.
I think it’s not worth even mentioning about bank deposits …
Today’s favorites are gold, securities and cryptocurrencies.
Let’s analyze in more detail:
- A savings asset that has been proven over the centuries, with a positive trend in price growth.
- High risk of being banned in a number of the world’s largest economies. For example, in the USA, where a bill is being considered that involves a ban on private ownership of gold.
- high liquidity, the ability to receive dividends in foreign currency.
- high volatility. The situation with the coronavirus pandemic has showed the fragility of the stock market and a direct dependence on the state of affairs in the global economy.
- Difficulties and high commissions during buying and selling.
- fixed and limited issue, this is what the dollar, euro and other fiat money are so lacking. For example, if Bitcoin provides for the issue of 21,000,000 coins or in Yusra 40,000,000 tokens, then the option to “print” or “issue” an additional several thousand or millions of coins is technically impossible, as it contradicts the terms of the smart contract, which is fixed in blockchain and cannot be changed.
- Over the past ten years, cryptocurrencies have shown a positive trend in the increase in value, which, according to analysts, will continue for more than a decade.
- Convenient and safe for storage and transportation;
- Security. Cryptocurrency can’t be seized, confiscated or prohibited.
- Privacy. Cryptocurrency transactions don’t require an identity confirmation (unlike bank transfers) and are conditionally anonymous.
- High liquidity. No problems and low commissions for both buying and selling.
- Independence. No correlation with the stock market, energy market or gold.
- High volatility, which is leveled when investing in the long term.
As can be seen from the above, today cryptocurrencies are the most promising and safest investment asset. They have all the pros and cons of the other investment instruments.
Cryptocurrencies are a truly highly liquid, safe and high-tech investment asset of the 21st century!