Is Investing in Cryptocurrency Really Safe Right Now?
Bitcoin (CRYPTO: BTC) was the world's first cryptocurrency, and to this day, it's the most well known. Moreover, since its creation in 2009, it's been one of the greatest-performing assets. Consider that the price of Bitcoin went up 94%, 302%, and 60% in 2019, 2020, and 2021, respectively.
During periods of superb performance, investors tend to throw all caution to the wind. However, now that Bitcoin and alternative cryptocurrencies are performing poorly, investors are starting to ask whether it's safe to invest in this space right now. And the answer is no. Investing in cryptocurrency isn't safe, and it never was. Here's why.
Let's boil the equation down to its basics. If you invest money in a cryptocurrency, it's because you expect that cryptocurrency to be worth more in the future. But for the price of Bitcoin or alternatives to Bitcoin to increase, there needs to be an increase in demand. After all, crypto's value goes up when demand outpaces supply.
Source Fool.com
