Cryptocurrency : An Investment-Option-Next -Door?

Hello Readers… First of all, sorry for posting after long time.

Today I am writing on little offbeat but yet investment related and trending topic as many queries have been arrived on this factor.

Today’s subject is Cryptocurrency. What is the Cryptocurrency? Will it be a sustainable investment option? Pros and Cons and factors affecting on its prices…

‘Money is the only exception to the Law of Diminishing Marginal Utility (DMU).

The sentence itself elaborates Value of the Money. As the change is only constant thing in the world, money has also a transformation journey from Barter to Bitcoin.

Bitcoin is one of the cryptocurrencies. Cryptocurrency is a digital currency. Litecoin, Ethereum and Verge are some other Cryptocurrencies. Though it’s a technology-based development, its not so commonly used still. As every coin has two sides cryptocurrencies also has some pitfalls along with benefits. Its main drawback is Decentralized and Un-organized controlling authorities.

Cryptocurrency Prices can be easily affected by various factors such as :

·      Social Acceptance:

Cryptocurrencies are not having majority social acceptance still now. When compared with Money or cards, cryptocurrency has not yet achieved general social adoption state.

 

·         Regulations and Authorities

The regulations controlling crypto currencies are not same all-over the world. At some places its nicely regulated but in some countries still the unconcernedness is there. The system is still unorganized which factor is affecting the cryptocurrency prices  at large amount.

·         News and Media Elements:

News as well Media is an important factor which affects Cryptocurrency Prices The small event on global level also causes fear of missed opportunities or fear of loss in people such as oil prices and others.

 

·         Financial Crisis

Generally, if financial crisis occurred, people move to other asset forms but as cryptocurrency is not so renowned form yet, investors still hesitate to se it as an option.

 

·         Demand Supply Mechanism

 Cryptocurrencies are not traditional form of money as so demand supply mechanism has different altitude for it. The demand is high and compared to it supply of cryptocurrencies is not that high rather, it has been slowed down with the time span.

 

 

Pros and Cons 

It’s a good option for physical cash and coins and also hassle-free way out for transactions. From Investment point of view also it will be easy to record option with no wear and tear elements but there is no I apt and proper regulation and authorization to the cryptocurrency yet and it is very vulnerable to social, Geo-Political, Economic as well as global deals and actions.

 

Conclusion

 Cryptocurrency can be a symbol of technological advancement in upcoming era, but if it overcomes the current lacking factors. Proper regulations, social adaptability and appropriate demand supply mechanism can bring the cryptocurrency in necessary limelight globally.

 

Stay tuned with the blog  ABCD of Investment by Madhura P Karekar for next article…