State of Cryptocurrencies.. Are we in a Bubble?
Crypto currencies have been on a all time high this year. The Market capital has risen from $10 Billion USD to over $100 Billion USD, people are calling it a bubble but we see it as a situation of “Capital Flight”: Capital flight happens usually when people lose their trust in economy. This happens when an empire starts falling (Most recent example can be noted with the British empire, and how the capital was invested in the US, opium etc)
You can see similar trends now, people have lost their trust in the US dollar and a they know, USD is not a good store of value. Similarly, we can see the trends in China (Check this video out) where citizens are trying to save their money and take it outside of China. This has lead to huge influx of money from all around the world and thus played an instrumental role in the growth of currencies like Bitcoin and Ethereum.
To cut the story short, people are tired of seeing governments and federal banks screwing up, they want to store the value of their money and Cryptocurrency is the best option as it’s not controlled by anyone!
Are we in a Bubble?
No, I don’t think so, that Cryptocurrencies are in a bubble “yet”, for something to be in a bubble, there has to be a saturation point. For Cryptocurrencies, the world is the target and the worldwide adoption of Cryptocurrencies is less than what Internet was in 1990’s. To prove this, you can take a walk around your neighbourhood and ask them about Bitcoin and Ethereum (As they are one of the most popular currencies) and I bet hardly one 1 out of 100 people knows about it. You start to worry when everyone starts giving you tips and opinion about the market and trust me we are far far away from that day.
The growth of both Bitcoin and Ethereum is lower than that of Amazon Inc. in 1996, which grew by 6000%
Investing Wisely in Cryptocurrencies
I always insist, being cautious while investing in Cryptocurrencies. It’s highly volatile! don’t day trade, make small investments for long term appreciation.
#Treat is like a Mutual fund on steroids- make small investments every week (As small as 50 usd)
#Always have control of your private keys and NEVER SHARE THEM WITH ANYONE
#Don’t keep your money in exchanges like Coinbase, Kraken or Zebpay
#Always be informed on what you are investing in, don’t gamble!
Go Secure yourself!
To make your self secure, I suggest using Hardware wallet. The one I use and recommend is Ledger nano S (This is the most cost efficient hardware wallet) or If you want something fancy you can always opt for Ledger Blue, which comes with a touch screen for ease of use.