Cryptocurrency is blowing up all over the news and social media and I know many of you have either thought about investing or currently are. And with Elon Musk being a huge influential voice in the crypto world, we can’t blame you.
And when it comes to anything to do with investing, we can’t help but take a peak.
So, what on earth is crypto?
Many consider Bitcoin, founded in 2009 by programmer (or potentially several programmers, no one really knows) Satoshi Nakamoto, to be the very first cryptocurrency ushering in the new age of blockchain technology and decentralizing digital currency.
In short, cryptocurrency is an online currency with real (yes real) world value, that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. This is attractive for a number of reasons, number 1 being its security using blockchain.
Now with blockchain technology, every transaction is recorded not in one computer, but multiple computers. Think of it as a giant ledger, noting every single transaction. Now imagine have hundreds of the same ledger, that you can use to verify ever transaction. You can literally track a piece of currency back to its original owner and look at all the transactions it’s been in in its lifetime.
So, is it a good investment?
To be very honest, it’s still very early in its life to really answer that question.
Ask anyone who bought Bitcoin before 2013 when it was under $100 per coin, and today a single coin worth shy of $50,000, they’ll probably say yes. Think about it for a second, if you invested $1000 in April 2013, you would have over $480,000 today. Not too bad for a small investment.
In saying that, that’s over 8 years and the more you invest, the more you make.
And yes, you can make a withdrawal just like your bank account, of cash or you can spend the currency online.
It’s an attractive investment but please note, if you do want to invest, just like anything, seek advice from an expert with real results and real credentials.
I can see the applications it can be used for in the future and real rewarding profits come from playing the long game.
So, would I choose crypto over real estate?
Currently, absolutely not. Real estate is one of the most important industries in Australia with fierce backing from the Australian Government. And when you look at the rates of return over time, it wins hands down.
So, take this article with a grain of salt, we’ll keep watching cryptocurrency and who knows, perhaps in the future, we’ll be accepting crypto as payment for our homes in the future.