WASHINGTON, January 11, 2018.: The sudden, perhaps unexpected spurt in the price of Bitcoin is leading investors to show interest in other crypto-currencies. While demand for about a dozen other crypto-currencies of the world remains slightly muted, indications are, their prices would also soar in coming months.
Several reasons have led to the exponential increase in Bitcoin rates. Early 2017, Bitcoin sold at little below US$ 1,000.
However, by March, the world's topmost crypto-currency broke all records to trade at the US $1,200 and above. In December, it topped all conventional and crypto-currency rates by crossing the US$ 17,000 mark.
Reasons attributed to Bitcoin's rise including its growing notoriety as preferred currency of cyber-criminals, aptly demonstrated by May 2017 WannaCry ransom-ware attack on computers worldwide.
Secondly, Bitcoin retains its consistent upward climb, unlike fiat currencies prone to market and political conditions. Media hype over Bitcoin, the privacy it affords and convenience to transact sans raising eyebrows is, however, the main reason for its popularity.
Despite reluctance on part of Federal Reserve and other financial regulatory authorities worldwide to accord legality to Bitcoin and other crypto-currency, investors now eye money based in cyberspace for evading tax, transacting secret deals and speculation.
Buying other crypto-currencies
Admittedly, other crypto-currencies are not offering high returns like Bitcoin. However, with Bitcoin prices skyrocketing, investors are increasingly eyeing other crypto-currency for speculation or purchasing.
Blockchain or the web-based data chain on which the crypto-currency flourish is booming. This possibly could be the right time to invest in crypto-currencies.
10 reasons to buy other crypto-currencies
1. High Bitcoin price
Currently, Bitcoin commands whopping US$ 17,000 and above rates, putting it out of reaches for most investors. In stark contrast, other crypto-currencies costs below US$ 500 for a single unit, which makes it possible to buy them in higher volumes. Other crypto-currency prices also indicate an upward trend assuring investors of future profits.
2. Notoriety in crime
Since its launch in 2009, Bitcoins history is fraught with crime. Interpol, Europol, Federal Bureau of Investigation and other law enforcement agencies worldwide are watching Bitcoin more closely than ever.
Fears over Bitcoin use to fund terror, drug trade and human trafficking, among others, have proven true with a few incidences of this crypto-currency being used by criminals were discovered by Interpol, Europol, Federal Bureau of Investigation and other law enforcement authorities worldwide.
Hence, Bitcoin aficionados stand a risk of coming under the scanner of law. Other crypto-currencies, in contrast, do not attract the significant attention of law enforcement authorities.
3. Cross-border acceptance
Most countries prohibit their citizens from holding offshore bank accounts to curb so-called tax evasion. Crypto-currencies, on the other hand, allow their investors to stockpile their money without drawing attention from tax and other authorities.
They provide an excellent alternative of sorts to offshore banks. Additionally, crypto-currency has a near total universal acceptance. They can be bought and sold anywhere in the world, on the Internet, through 'blockchain'.
4. Crypto-currencies offer perfect anonymity
Similar to Bitcoin, other crypto-currency also offer a very high level of anonymity. Identity and other details of any person trading crypto-currency generally remain off-record.
Purchases are online, using credit or debit cards. They can be redeemed for cash at online crypto-currency exchanges. No records of transactions are maintained anywhere. Spends and wins at casinos remain secret too.
5. Easy portability
All crypto-currencies offer very high degree of portability, unlike fiat currency. Crypto-currency holders need not lug stacks of currency notes. They need not carry anything at all since crypto-currency lives online, or in software wallets, with intricate passwords.
They can also be stored in compact hardware wallets, readily available from online stores including Amazon. A smart-phone with an Internet connection is sufficient to access crypto-currencies.
Prices of most major crypto-currencies are increasing. Buying them while prices are affordable makes sense since they can offer some level of buffer and hedging against vagaries of stock and foreign currency markets. Should the need arise, crypto-currency can be sold quickly for cash at any exchange worldwide.
Since crypto-currency is not physical and it lives in cyberspace, they do not attract taxes. Hence, it is possible to trade in large volumes, without tax burden on investors.
For people so inclined, crypto-currencies also offer tax haven of kinds, meaning governments do not know about who holds them. Crypto-currency is inherently 'tax-free.'
Banks and financial institutions sometimes deny customers access to their bank accounts and assets for various reasons. However, there are no regulatory authorities or banking laws involved in crypto-currencies.
This allows investors to access them 24x7x365, regardless of anything. Crypto-currency is an asset nobody can legally seize from holders.
9. Limited editions
Similar to Bitcoin, other crypto-currencies are limited editions. The 'mining' process generates crypto-currency via blockchains. Once blockchains stop generating more, all crypto-currencies will become rare in about two to three decades.
Nobody can anticipate their demand at that stage. Yet, chances are, the demand would remain high despite newer crypto-currencies entering the fray. Hence, excellent returns on investments seem guaranteed.
Speculative trading in other crypto-currencies on a daily or regular basis is possible. Trading in crypto-currencies is fairly simple as no monetary authority regulates crypto-currency.
Sound knowledge about previous market performances and trends is sufficient for anyone to speculate in crypto-currencies, to make a quick fortune.
With governments across the world reluctant to legitimize crypto-currency of any sorts, their future continues to remain in limbo. Advances in technology could lead to more acceptable and readily available forms of currencies in cyberspace.
The lack of a regulatory authority means, crypto-currencies have no collaterals or are not guaranteed by any government.
Should criminals and terrorists continue to patronize or prefer crypto-currency for nefarious acts, chances are, governments around the world may deem them as illegal.
This is fairly likely, given the current situation: For over a decade, governments have shied away from legitimizing crypto-currency. Chances are, this trend could continue.
Crypto-currency offers no guarantees of a return on investments. Nor can anyone assure that investment itself would be returned.
Those entering crypto-currency trading will, therefore, have the proverbial Damocles Sword hanging over the head. Investors will also have to study market trends and fluctuations in prices of other crypto-currency before putting money into buying some.