2017 was undoubtedly “the year of cryptocurrency”. The sudden hype around crypto resulted in a major media frenzy — all of a sudden every news outlet was covering bitcoin and the cryptocurrency market. It was this surge of increasing popularity and exposure that ultimately fuelled the famous bull run of December 2017, when Bitcoin reached $20,000. Soon after this, everybody in the world wanted a piece of the crypto cake.

Was this period good or bad for the current investment market?

Although this rush led to huge gains for early adopters, many new investors were left wondering if they had missed the boat, and were concerned that cryptocurrency investments were no longer profitable. Additionally, the price of most cryptocurrencies took a significant hit in early 2018 — the price of Bitcoin fell from nearly $20,000 to around $6000 in a matter of weeks, a “flash crash”. In turn, the number of new market participants fell dramatically in early 2018.

The largely speculative investments that fueled the increase in the price of Bitcoin and other cryptocurrencies in 2017 resulted in a heavy and potentially premature surges in the crypto markets. However, it is important to remember that we are still at the very early stages of development in the cryptocurrency industry, and that there will be growing pains along the way to market maturity. Blockchain technology remains extremely promising. Notable financial figures, such as VC investor Tim Draper, have made public claims that Bitcoin and its underlying blockchain technology “hold the key to a revolution bigger than the Stone Age, Iron Age and Industrial Revolution, combined.”

How can cryptocurrency investments still be profitable in such a new market?

1. Initial Coin Offerings And Blockchain Tech Companies

There have been a huge number of blockchain companies emerging over the last few years. Many of them have experienced gains comparable to major cryptocurrencies, like Bitcoin and Ethereum. Since blockchain tech has been reliably demonstrating its utility in a vast number of industries, it can be assumed that investing in the companies that are pioneering and bringing this technology to the masses could be very rewarding.

The underlying technology of cryptocurrencies like Bitcoin is the thing that truly makes them valuable. Therefore, while most cryptocurrencies may be volatile, unpredictable, and hard to value, companies using blockchain for a specific and profitable purpose may be able to reap the benefits of crypto without being exposed to such a wild and harsh market.

2. Governments Are Increasingly Positive About Blockchain

Aside from national cryptocurrency projects like Switzerland’s E-Franc and Russia’s CryptoRuble, governments have been showing increased interest in blockchain technology and its use cases in a variety of applications, including their national economies. Although the use of cryptocurrency is still being investigated by many national authorities, the future of blockchain technology seems to hold a key place in the technological development of most existing industries, as well as some new ones altogether.

It seems that the cryptocurrency market is hanging on the threads of regulation. If three or four of the world’s largest nations (ie China, the USA, the UK and Russia) decided to simultaneously ban the use of cryptocurrencies, the crypto market would be significantly affected and could potentially crash in a very short amount of time. However, since a number of major companies from Google to JP Morgan Chase are developing blockchain-based solutions for a multitude of projects, it seems unlikely so far that the use of blockchain tech will be exposed to such detrimental regulations.

3. Still A Chance To Be An Early Adopter

Bitcoin has been around for 10 years now, and only in the past couple of years has cryptocurrency seen such heights. Though it’s no longer an option to be one of the first Bitcoin or Ethereum investors, it’s still possible to be one of the first people to invest in a company that could be the next Google or even the next Wall Street.

That being said, cryptocurrencies themselves are still in their early stages, and it’s likely that currencies like Bitcoin, Ethereum, and Litecoin could still reach unprecedented heights. To put the crypto market into perspective, it sits at around $336 billion at the time of writing, while Apple, the top S&P company sits at around $892 billion and Facebook (the 6th S&P company) is around $523 billion. The total value of all cryptocurrencies in existence is not even equal in value to the 6th S&P company. If even one of those cryptocurrencies made it to S&P top 5 levels, the crypto market cap would see a price that would make the December bull run look like a spec on the chart.

It’s also interesting to note that the daily trading volume of the cryptocurrency market is in the range of billions of US dollars, while the daily volume of forex trading is $3–5 trillion.

4. Get Ahead Of Your Finances With Blockchain Financial Services

Investing in cryptocurrencies doesn’t have to mean buying cryptocurrency yourself. Blockchain financial services can help investors use the volatility of the cryptocurrency market to make fiat profits.

5. Crypto Is Being Accepted In More And More Establishments

Only a few years ago, cryptocurrencies were accepted in very few places, mostly in online stores. Now everything is different.

Last year, there were several high value and landmark properties for sale exclusively for Bitcoin. This means that the world is at a stage where some people will not accept fiat and will only accept crypto. Although these may be extreme cases, this shows the potential that crypto has to replace the current financial system. If crypto does ultimately replace the currency financial system, it will undoubtedly be worth a lot more than it is today.

About CINDX

CINDX is an investment platform that allows individuals to combine several crypto exchange accounts into one trading terminal, and gives them the option to connect to the best managers without having to transfer their funds. Moreover, implementation of blockchain-based transactions will allow the trading history to be saved, and a rating system will be used to differentiate the successful managers from the less successful ones.

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