top of page

Top 5 reasons to invest in crypto


Top 5 reasons to invest in crypto

1. Upside Potential


Cryptocurrencies are the fastest growing technology in all recorded history, as cryptocurrency adoption has been growing at almost double the speed of the internet.


This is shown by the chart below (provided by gmi), which compares crypto adoption with the early years of the internet.

crypto users vs internet users over same time

If crypto continues on its current path of adoption, we could reach 1 billion crypto users by 2024 and 5 billion by 2030, even with the rate of adoption slowing.


The cryptocurrency and NFT market reached a total value of around $3 trillion towards the end of last year, with a user base of around 300 million users.


If 1 billion users are attained over the coming years, which is probabilistic based on the rate of adoption we have seen so far, then the crypto and NFT market could reach more than $10 trillion of value – hence providing remarkable upside potential for long term investors.


In addition, the market cap of the largest technology companies in the world as follows are:

  • Apple ($2.7 trillion)

  • Microsoft ($1.9 trillion)

  • Google ($1.4 trillion)

  • Amazon ($1.3 trillion)

These are all individually greater than the total market cap of the crypto industry currently, which is under $1 trillion at the time of writing.


However, in theory, the networks which allow the most efficient transfer of value should be worth more than information networks, further pointing to cryptocurrencies having extreme upside potential.


2. Owning a Part of the Network


Before cryptocurrencies were born, the internet held the title for the fastest growing adoption of a new technology during its early years (1990s). During this time though, investors were unable to invest in the most profitable internet networks themselves. Some were able to invest in shares in the likes of Meta (Facebook) and Google early on, but this was mainly accredited investors.


The difference with cryptocurrencies is that you are able to own a part of the actual network, and therefore can potentially profit incredibly. This provides an incredible opportunity for those with small amounts of capital, but who are willing and determined to put the work in to find the next Facebooks and Googles, and therefore benefit financially.


By owning a part of the network, investors are also rewarded for doing so in some cases, particularly with Proof-of-Stake cryptocurrencies. These reward you with a yield for locking up your crypto assets, which can be compared to dividend yields with traditional stocks, except more lucrative.


The fact that you can own a part of these crypto networks allows for a new creator economy – a community-owned ecosystem, where both creators and their audiences can profit from their contributions. With cryptocurrency platforms/networks, there is a clear shift in power dynamics from the platforms to the creators and their communities. New forms of direct creator-community relationships are promoted, as opposed to creators just providing value to the platforms.


This allows creators to offer more to their fans, including financial upside, so owning a cryptocurrency can allow you to be more in touch with a particular community - enrichening the community over a centralised platform.


3. Security


Owning cryptocurrencies and NFTs can provide investors with the comfort of knowing that your funds cannot be stolen, or the platform cannot be hacked, if you choose a secure storage option (GlobalBlock have partnered with Qredo to provide secure cold storage for client funds and also provide insurance options covering crypto assets from theft or malicious intents).


4. Diversification

Pie Chart for Diversification

Cryptocurrencies and NFTs can offer investors diversification from traditional financial assets like stocks and bonds.


The crypto and NFT market has had a very high correlation with the stock market over the past 9 months or so, as a result of macroeconomic headwinds. This would suggest crypto and NFTs act as a poor diversification tool from an investor’s standpoint.


However, when we have macroeconomic tailwinds cryptocurrencies and NFTs become uncorrelated to traditional assets and behave on their own accord. We experienced this during the 18 months after the COVID pandemic broke out.


5. Outside of Government Control


The value of government-controlled fiat money erodes over time, due to the ability for governments to print as much of their currency as they would like. This has led the British Pound losing 99.2% of its value since 1910, and the dollar losing 96.7% of its value since 1910.

Cryptocurrencies on the other hand, are controlled by code and most have a maximum supply which cannot be breached. Bitcoin, in particular, has a monetary policy which is set in the code and is virtually impossible to change. This means we know the exact supply of Bitcoins entering the market each year.


It can be especially important to own assets such as cryptocurrencies, which are outside government-based financial systems, in cases where citizens lose trust in governments.


For example, when the U.S. government abandoned the gold standard in 1971, meaning the dollar was no longer pegged to gold, this resulted in a decade long rally for gold (almost 2000% return). Investors flocked to the scarcest asset that governments could not print endlessly, which could, from 1971 onwards, be done for fiat currencies.


With cryptocurrencies being even further outside the reach of government control than gold, and in some cases scarcer, they could play an important role in an investor’s portfolio.


If you would like to learn more about cryptocurrency, feel free to contact us. Globalblock aim to provide guidance and education throughout your crypto investment journey.



Comments


GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Ltd., a company registered in England and Wales with registration number 09450626. GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Ltd., a company registered in England and Wales with registration number 09450626,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

​

Cryptoasset Notice

​

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page