Billions To Be Made In Crypto
The most commonly asked question by those wishing to venture into the world of crypto currency is “is there money to be made from crypto.”
The essence of investing is to make money. There are several avenues where people make can make money on their investment. Speculating on stocks is one avenue while the other is property speculation. While property speculation requires a huge investment, stocks do not need a lot of initial capital to start buying stocks. One overlooked area where billions are being made is in crypto currency.
The above sounds too good to be true. In order to put this in perspective, a real life example of a person who made millions on crypto currency would suffice. Michael Novogratz is the former principal of Fortress. Novogratz made an initial investment of $500,000 in 2015 when he bought ether. The buying rate was less a dollar per ether at that time. By 2017, the value of ether had risen to $400. When you consider that his initial investment was $500,000, let us assume he bought a minimum of 500,000 ether digital currency. Now that the value has skyrocketed to $400 per ether, his net value is $200,000,000!
Let us assume that he had also invested a similar amount in Bitcoin when he was buying ether. If the value of Bitcoin in 2015 was an average of $300 (it oscillated at 313-333), he would have bought 1600 Bitcoins (I am rounding off numbers to the nearest hundred). By 2017, the value of Bitcoin was $2,500. This translates into a new net worth of $4,000,000. In total, from an initial investment of $1,000,000, he would be worth $204,000,000. This is an astronomical increase in net worth considering that it has taken only two years!
You may wonder what are these facts that I am talking about. In this case, the data out there shows that there is money to be made in crypto currencies. Lots of money! The data available shows that there is a shift from investments in stocks to crypto currency. In 2017 alone, there has been an outward movement of $32 billion in just ten weeks from the stock markets. This started in late June. This outflow of money from one market into the other shows that there is money to be made in crypto currency.
Another way to make money through crypto currency is by lending against it. There is a huge market for lending against digital security and this brings in reasonable returns. As people shift to holding their assets in crypto currency, it will increasingly be used as collateral in lending. People have realized that crypto currency can be bought and held as an asset much the same way as traditional stocks. It, therefore, makes sense to borrow against the same asset. This goes to prove conclusively that there are billions to be made in crypto currency.