With the growing popularity of cryptocurrency many investors are interested in the profitability of investing exclusively in cryptocurrency. This article considers all the strengths and weaknesses of the cryptocurrency sector in terms of investment attraction.
The main advantage of cryptocurrency before HYIPs is, of course, that they have real value, i.e. it can be sold at any time through the exchanger, the stock market, or directly to someone else! In contrast, it is possible to invest in a Piggy Bank HYIP where, as you know, you can withdraw money at any time, but there are very few such projects.
In all the other hyips, your deposits are worthless, as there is no guarantee that the HYIP will complete all of the deposit obligations. Another advantage of investing in cryptocurrency before HYIPs is that the basic cryptocurrencies cannot virtually depreciate, meaning that they are unlikely to go scam, which, of course, is not the case with HYIPs.
But still here the HYIPs can do something about it, namely that in HYIPs there are insurances that sometimes amount to enormous sums and cover up to 100% of the losses. The advantages of Bitcoin can include its abrupt increase in price from the end of March 2017 due to its legalization in Japan, the flow of investors from India and China, where the price for local currencies fell, and the popularity of cryptocurrencies on the whole.
The growth of Bitcoin rate began in August last year, and is still going with small intervals. Bitcoin overcame $1,000 grade in January 2017, then grew to 1200 dollars, and by the end of March it fell back to a thousand, and has since shown record growth, sometimes adding 100 to 150 dollars a day.
Something similar in the history of cryptocurrency happened only once — in 2013, when Bitcoin rate rose from $100 to almost a thousand a month. The instability of the cryptocurrency rate can be attributed to the disadvantages of cryptocurrency compared to HYIPs. Most HYIPs offer a fixed profit, while the cryptocurrency price is constantly fluctuating.
Not every investor can withstand price fluctuations. As far as investment in other cryptocurrency is concerned, in terms of investment attraction, the situation is even worse.
If Bitcoin has a limited issue of 21 million coins, others have more than a number of issues (Litecoin-84 million), and some, such as Ethereum, have unlimited number of issues, and this is simply a huge minus. In fact, they’re like an American dollar that can be issued and printed without end until the currency gets depreciated.
Limited issue of Bitcoin, sooner or later, will lead to a shortage, which, in turn, will lead to higher costs. Perhaps, this is the main advantage of Bitcoin before other cryptocurrencies, unless, of course, it was also the very first.