With Bitcoin and with the cryptocurrency market growing at over 150% annually, it’s easy to see why long-term investors are getting more involved in this new asset class.
But how do we know that cryptocurrencies are a good long-term investment?
Just ask yourself these 3 questions:
- Is there massive adoption and growth?
- Does it hold up in uncertain markets?
- Does it solve a big problem that creates value?
Once you have checked these boxes, all you have to do is invest in the cryptocurrency itself or in a diverse basket of cryptocurrencies that provide exposure to the specific growth area you find.
Then all you have to do is hold on to the investment you made for the long term.
So let’s go ahead and answer the 3 questions above.
1. Are cryptocurrencies seeing adoption and growth?
Technically, cryptocurrencies are the fastest growing technology in human history. It is actually growing faster than the Internet.
The cryptocurrency user base is growing at over +100% per year – well ahead of the adoption rate the internet saw in the 1990s and early 2000s, which was around +67% per year, as you can see below.
We are living in a remarkable time in human history with the evolution of money, banking and financial services at lightning speed.
You must be wondering, isn’t this opportunity too important to miss??
How can you take advantage of this growth and invest in it?
In 2021, more than 300 million people used crypto worldwide. By 2024, the cryptocurrency will still reach 1 billion users, even with a growth rate that is only 80% of the current rate. . This means that one in eight people will interact with or use crypto in some way.
It’s not just a trend, it’s a long-term financial solution.
There are easy and effortless ways to invest in commodities. Revix is a Cape Town-based crypto investment platform, backed by Sabvest, listed on the JSE. It prides itself on being the easiest way to instantly buy a diverse set of crypto assets by industry or a single low-cost cryptocurrency. the Revix Top 10 Setallows you to instantly invest in the entire crypto market through a single investment vehicle – think of it like the S&P 5000 but for crypto.
the Top 10 packs offers equal weighted exposure to the top 10 cryptocurrencies which account for over 75% of the crypto market.
2. What is the impact of changing economic conditions on the future of my investment?
We’re all familiar with the term “interest rates” and have seen the news of rising interest rates flooding our screens over the past few months.
But what does this mean for your investments?
When interest rates rise, two things happen:
- The cost of borrowing is rising
- The money supply in circulation is decreasing
The idea is that if money is more expensive to borrow, fewer people will spend their money because they have an incentive to save with higher interest on their savings account. According to the theory, stock markets tend to fall as analysts and wealth managers begin to price in rising borrowing costs and falling demand.
However, cryptocurrencies seem to be reversing the trend.
In the chart above, we can see that the US Central Bank raised interest rates 7 times between 2016 and 2018. Yet, if you stayed invested in Bitcoin, you would have received a return of +740% at one point. where many expected it to drop.
Crypto’s Long-Term Resilience Against Interest Rate Hikes
In the long term, it becomes clear that changes in interest rates, both up and down, have had only a limited impact on the price of cryptocurrencies. This is likely due to investors’ continued belief in the ability of this emerging asset class to be a store of value and/or deliver value through use cases.
Given that the market has forecast 4-5 interest rate hikes from March 2022, why wouldn’t you want to hold an asset class that historically appears to be rising during this time?
Investing in the cryptocurrency market as a whole has proven to be the best way to stay invested for the long term. You can invest in a diverse set that tracks the crypto market with the click of a button through the Revix Top 10 Set.
3. Do cryptocurrencies solve a problem and create value?
In simple terms, yes.
It is an asset class that solves a multitude of problems, financial and non-financial, that are currently plaguing the world.
Here is a list of some of the main problems that we find that crypto solves:
1. Sending money abroad:
This market is believed to be as important as $1,000,000 and costs many people around 7%-15% to send money home.
Payment targeted cryptocurrencies enable the transfer of money at a fraction of the cost and at near instantaneous speeds.
How to invest:
You can find a payment-oriented ready-to-use crypto bundle offered by the crypto platform Revix. This bundle is an index-based offering that provides equally weighted exposure to the top 5 payments-focused cryptocurrencies that seek to make payments cheaper, faster, and more global.
2. High inflation and currency devaluation:
We have all been subjected for too long to money printing and the weakening of our purchasing power by high inflation.
Bitcoin and many other cryptocurrencies solve this problem by programming a fixed supply and a decreasing rate of inflation.
How to invest:
Revix offers an easy-to-use platform that allows you to purchase Bitcoin at the click of a button.
Due to the devaluation of your currency and inflation, many investments/assets are too expensive these days to buy outright. Many people cannot afford expensive investments, such as real estate.
Tokenization can help people buy part of a house to keep as an investment.
How to invest:
The Smart Contract crypto industry is the backbone of tokenization. If you want to invest in Smart Contract sector using a low-cost, diversified index-based approach, you can purchase Revix’s smart contract-focused bundle here. Their package also provides weighted exposure to the top 5 cryptocurrencies focused on smart contracts that enable developers to build applications on top of their blockchains.
Do Revix Bundles Really Outperform Single Cryptocurrencies?
Yes, they do this by creating an easy to use product that takes advantage of diversification and monthly rebalancing.
We can see above that Revix Crypto Bundles outperform every major cryptocurrency in its industry.
So why risk it all on a single asset when you can hold a bundle and outperform?
Crypto Bundles allow you to effortlessly own an equally-weighted basket of the world’s largest and, by default, best-performing cryptocurrencies, without having to create and manage a cryptocurrency portfolio yourself. Revix currently offers all three Bundles above, namely the Top 10 packs, payment package and Set of smart contracts. DM/BM
Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform lets you securely own the world’s best cryptocurrencies with just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own wallet but can access support from the Revix team at any time.
Remember that cryptocurrencies are high risk investments. You should not invest more than you can afford to lose, and before investing please consider your level of experience, your investment objectives and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions and not facts and should not be construed as investment advice or recommendations. This article is not an offer, or the solicitation of an offer, to buy or sell any cryptocurrency.
To find out more visit www.revix.com.