Is cryptocurrency a good long-term investment?
Most of our blog posts here usually revolve around the idea that cryptocurrency is a good investment, we deal with the subject as if it’s something that everyone agrees on. And honestly, we believe that we have our excuse for dealing with this as truth, not an opinion. If you work in the crypto industry and believe in the crypto movement like us, it is natural that you take this fact for granted.
Nevertheless, let’s discuss this from another viewpoint, the viewpoint we all agree on which is profit. At the time of writing this piece, the price of a single BTC is about $ 30K which is a significant increase from its initial value of nothing and also a significant decrease from its ATH which was close to $ 70K. Still, since we’re not doing technical analysis, for most early adopters cryptocurrency was their ticket to wealth. Cryptocurrency, as volatile as they are were still a safer and more profitable investment than anything else that came through this period.
Also, we must take into account that, unlike most other investment forms, cryptocurrencies are not geographically tied to any place, meaning, if you invested in Facebook, Apple, or Tesla you could have made significant profits as well, but there were two main hurdles, the first is that you had to be in the United States or any other country that investing in foreign stock exchanges was allowed, and the second is that you had to use brokers who take a percentage of your money just because they have an unfair exclusive legal right to do so. On the other hand, cryptocurrencies are not tied to any geographical location, you could be in Africa or Canada and you’ll still be able to invest in the same cryptocurrency and purchase it for the same price.
Still, we proved that cryptocurrency from a profit POV is a good more accessible investment, but is it a viable long-term investment?
Well, the answer to this question is tricky, longterm investment isn’t just the one thing, there are many forms of long-term investment each governed by a different set of rules and most retail investors (the type that mostly invests in cryptocurrency) do not know those types and for the most part, do not even care.
Long-term investment in cryptocurrency is mostly akin to growth stock, growth stock is when investors put money into new projects and companies and expect to make a return when the company grows and reaches a promised state of success.
In cryptocurrency, investment in projects -be it well-established projects or new ones- doesn’t follow a strict investment profile, on the contrary, everything is dynamic, and everything is changing, it’s not like hedge funds investment but also not like penny-stock investment, it’s better, more like the best of both worlds.
You don’t have to have millions of dollars to invest you could start with a few hundred or even less, and you don’t need to wait for dividends or a locked period of investment (unless you chose a staking option or a project with a lockin period for token sales) but for the most part, you don’t have to follow those rules, and you could withdraw your money at any moment.
But how to choose a project for long-term investment?
Take Futira for example, we believe that Futira is a good project for this exact purpose and here’s why:
1- A known team, no one is anonymous.
2-Fully licensed and regulated.
3-The project is still in its early phases and shows significant promise for growth.
4- The desired market isn’t fully saturated and in fact, Futira is building a new market and introducing over a billion new customers to the global market.
5- The cryptocurrency part of the project is fully transparent, the smart contract audit is published and the licenses are public with full journalistic coverage over each phase of the project.
If you read those points you’ll find that after the guarantees that the project is real and the owners are not scammers the most important thing is the project itself and the market. In the case of Futira, the telecommunication industry has been a black horse ever since it started. And there is no reason to believe that humanity will stop caring for communication and in Futira’s case, the project is trying to cover the last uncovered areas on the planet, which means it’s a rare opportunity that will not present itself again until the wheels of human innovation roll again and new technology gets conceived that would be as popular and as needed as telecommunications and the internet.