While some are skeptical of investing in crypto soon after prices drop, Richard Iamunno offers insight that can help savvy investors understand why purchasing cryptocurrencies can be a wise financial move.
First, Iamunno explains, it’s essential to understand that many businesses are optimistic about crypto’s short-term outlook and thus allow customers to pay for purchases in one or more cryptocurrencies.
Bitcoin is particularly popular, as large international corporations such as Microsoft, PayPal, Starbucks, Virgin Galactic, Twitch (which is owned by Amazon), Etsy, Rakuten, and Whole Foods allow payments using this particular cryptocurrency. A host of restaurants, hotels, web hosting services, fashion retailers, and service retailers allow payments in Dogecoin, a crypto that was once viewed as a joke but has now garnered multiple celebrity endorsements.
Ethereum is also becoming increasingly popular and can be used on numerous online sales sites such as Overstock. Indeed, Richard Iamunno‘s own company, AIC, recently expanded its yacht and luxury product platform to include the top 1,500 tokens on the market. The fact that the business community is growing increasingly comfortable with cryptocurrencies shows that crypto will likely be in demand for the foreseeable future.
Naturally, the market fluctuations are still causing hesitation among those who are concerned that their investment could lose tens of thousands of dollars in value in a matter of minutes. It’s true, Iamunno points out, that crypto is far more volatile than other traditional investment options such as stocks, bonds, and mutual funds.
However, Richard is quick to note, fluctuations work both ways. A cryptocurrency that has lost 30% of its value in a few months can easily regain this value and even rise above past heights. In fact, some experts are predicting that Bitcoin could hit $100,000 per coin by the end of 2023.
While market fluctuations may make crypto a poor investment option for those who want to generate fast returns, it can be an ideal long-term investment option for those who are willing to wait for their investment to rise in value. In fact, it can be viewed as being similar to an investment in real estate. A house, building, or piece of land may lose value due to rising interest rates and other market-related factors; however, real estate steadily rises in value long-term and is a good investment for those who buy and sell at the right times.
Additionally, he explains, cryptocurrency values are not as susceptible to inflation as official currencies such as the United States Dollar, making them an ideal investment option for those who want to avoid losing money due to current market problems. Inflation in the United States has risen to an eye-popping 8.5%, a record high for the last forty years. Supply chain shortages, the Russia/Ukraine conflict, COVID-19 lockdowns, and arguably the distribution of COVID-19-related aid to individuals and businesses have led to runaway inflation that the FED has been hard-pressed to stop, and experts believe inflation could last for the next couple of years until it falls to an ideal 2% rise per year.
Crypto, on the other hand, performed well in 2021 and, after a noteworthy crash, has been steadily rising in value thanks in part to the fact that there is only a limited quantity of tokens in circulation at any given point in time. There is no chance inflation will disrupt crypto markets that are designed to maintain a reasonably low supply of coins in order to avoid artificial inflation of the tokens’ value.
Crypto is also a great option for any investor looking to diversify his or her portfolio. While token values can be affected by fluctuations in the stock market, they aren’t as heavily affected as paper investments. Rich highly recommends his own firm for those who are new to crypto investments as AIC can offer the solutions and expert help new investors need to get started.
On another note, Iamunno explains that crypto investors will have greater control over their crypto investments than they would over alternative investment options. While it can take a typical financial institution three to five days to complete a transaction, a crypto transaction can be completed in a matter of seconds.
Iamunno is the first to point out that anyone who is considering investing in crypto should do careful research to select the investment that is most likely to turn a good profit. One’s investment goals, the amount of money one wants to invest, and other factors will determine which crypto option is the optimal one.
Furthermore, it’s also important to pick the right crypto and identify a time when crypto values are low yet poised to rise.
That time is now, Rich asserts. Cryptocurrencies are becoming increasingly widespread, easier than ever to buy and sell, and will likely rise in value long-term even though they are prone to significant fluctuations. Prices have risen somewhat since the last crypto market crash but could rise significantly higher in the near future, providing windfall profits to investors who know when to get in and out of the market.
Written by Richard Iamunno.
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The views expressed are those of the author and are not necessarily those of the CEOWORLD magazine.