The concept of asset classes such as precious metals is critical to understanding the popularity of cryptocurrencies such as the one called Cardano (CCC:ADA-USD).
More than 13 years have passed since the 2008 financial crisis. However, the Federal Reserve cannot turn off sort mode. Central banks continue to look for reasons to give the world financial morphine. They found a headline for this and the last one was wacky. Stopping all global business for a month was definitely a worthy crisis.
Cryptocurrency concepts are as relevant as ever. It’s a mystery to old experts, even Charlie Munger and Warren Buffett. But they are totally wrong.
Cryptocurrency is often criticized for aiding crime, but I bet money is the main culprit.
As an asset class, cryptocurrencies were head and shoulders above all others. Over the past decade, nothing has even come close. Comparing this to the gold rush is not even enough. Imagine the gold rush, when miners collect other rocks, the value of which increases dramatically.
Cardano is a cryptocurrency that is trying to break up the chain. It has roots in other cryptocurrency coins from the founders Ethereum (CCC:ETH-USD). It has nuances in its use, but for capital gains the details are not so necessary. Its mechanics and applications are interesting, but too complex to discuss here.
IPhone users love the phone, they don’t need to know how it works to buy Apple (NASDAQ:AAPL) stocks.
Cardano’s Value Rises Because People Believe It Will Happen
Making the case for investing in Cardano is easy. The risk is justified due to the credibility with which the markets buy electronic coins. Investors flock to them in the hope of getting rich. They do have many examples of what is happening right now.
Bitcoin (CCC:BTC-USD) is the largest, but Ethereum is gaining momentum. All other newbies are instant hopes, including Cardano.
In terms of increasing capital, they all have their own merits. Human emotions are the driving force behind their popularity. It is impossible to predict, but the pursuit of wealth is age old, and it unfolds here.
When it comes to traditional investing, I usually avoid chasing memes. But investing in promising cryptocurrencies like Cardano is an attractive lottery ticket-style investment.
It’s hard for me to even use the words “lottery” and “investment” in one sentence, but it’s real. Putting odds next to that would be complete speculation.
Skepticism towards governments is extremely high, which makes cryptocurrency more popular. Major central banks are in a race to devalue their currencies. The goal is to lift their economies out of the pandemic pit.
The actions of the Central Bank make it necessary
Last year, governments panicked and shut down the entire world for months. They planned a depression scenario like a dentist visit. The goal was a noble one – to save lives, but the cost of getting out of control got out of control.
The US dollar is the world’s currency. And cannot find the bottom. Buying assets like cryptocurrencies protects wealth from government action. By this I do not mean hiding money from the government. Rather, he owns something that is not influenced by the actions of central banks.
For example, the Fed cannot influence the prices of bitcoins. The authorities will have to ban cryptocurrency, which is unlikely. Cardano cuts his own piece of pie with a bunch of coins. At this level, there is no reason to doubt it. The rallies were brutal and promising. Investors, especially newbies, see a 240% rally unfold in just a few weeks and think that is the case.
Case in point: On April 13, Cardano fell 41% in nine days. Then, six days after that, it rose 50%.
Bring your helmets and your Dramamine, then owning this e-coin can be fun. I have read too divided opinions. There are haters and extreme lovers. They both are wrong because cryptocurrencies have their merits. And their values also have limits. The current price movement may not reflect this, but at the end of the day, these are not all bitcoin stories.
If you believe in gold and money, you are already there
Gold, fiat money, bitcoin and cardano have value because people say so. There is no real reason why a yellow stone (gold) is worth more than a white stone next to it. Gold doesn’t serve a real purpose, but people love it. It is also difficult to find, so it has value.
Cryptocurrency haters cannot believe that so many people are chasing them. Cardano is part of a change of time as we expand asset classes. Those who fail to adapt will be left in the dust. It’s easiest for haters to just ignore it.
Lack of cryptocurrency will not cause you additional harm as an investor. It just leaves you in danger of what central banks are doing with your money. I understand that we need to spend a lot to get out of the economic hole. I am afraid that we have gone too far and the consequences will last for decades. My son is now 19 and will have to deal with this mess in his early twenties.
Cryptocurrency can be part of financial silos that people can hide in when these inflationary costs hit back.
As of the date of publication, Nicolas Shahin did not have (directly or indirectly) any positions in the securities referred to in this article.
Nicolas Shahin – Managing Director SellSpreads.com…