The new crypto options that are taking investors away from stocks

Fund-Matters | November 5, 2017 | Bitcoins, Financial Planning, | 0 Comments

As time passes, more and more advancements in every phase of the world are springing up. Just like all other sectors of the world, the world of investment is going through a major revolution. It is the time when cryptocurrency has become very popular. This increasing popularity is causing disruption in the stock market. Cryptocurrency can be referred to as the digital currency which makes use of cryptography for security. Cryptocurrencies have made money transactions extremely safe and have now become a major way of investments. It is said that the more popular cryptocurrencies get, the greater are the chances of the current investment framework to get disturbed.
Since the year 2004, the stock market is facing great difficulties because of crypto currencies. Coin Telegraph reported that around $30 billion has been withdrawn from the stock market in just 10 weeks. It is a clear sign that through cryptocurrencies, the investor has found a new way of making a profit. This is because the value of the cryptocurrency has touched its peak. The cryptocurrencies have made record breaking high price points which are attracting the investors all around. A major reason of this major shift-over can be the safe aspect of using digital currency. It cannot be denied that the money processing in the form of cryptocurrencies such as bitcoins, lite coins, etc. is way safer than the traditional U.S dollars. It is said to be a safer store of value investments as compared to precious metals.

In the year 2013, precious metals covered 10% of the portfolios whereas now this has dropped to just 2%. This drop clearly portrays that investors have chosen a different direction. This has caused a lot of funds being withdrawn from the stock market paving way for its downfall which seemed inevitable before the emergence of cryptocurrencies. Even when the stock market posted gains, this didn’t stop the investors from pulling out their assets from the market. This paved way for more investors to withdraw from the market. Another reason for this could also possibly be the monetization policies that are about to be introduced.

The investors have observed and understood the numerous advantages of using cryptocurrencies. A lot of new opportunities for investment have grown with the block chain technology hitting the market. Investments are being tokenized by a lot of companies which allow investors with smaller appetites to collectively buy investments that are on a large-scale. The most popular companies that have entered in this area are MyBit and LAToken. The high fee that is a major setback in the traditional markets is shrugged off in this process as these new processes allow the investor to be a part in it without worrying about the fee. LAToken is a company that has introduced a system through which blue chip stock shares such as Amazon.inc (AMZN) and Apple (AAPL) can be purchased in the form of tokens. No one is sure whether these cryptocurrencies will completely revolutionize the investment world. The situation seems like it’s the time when the stock market will witness its downfall, though it cannot be said for sure that the stock market will fall. This has shown that there is a place for new systems which can give a new direction to the investors. Not only will it benefit the investors, but will also
create more new opportunities for everyone.

Image Source: Pixabay

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