Right now. Right now is the best time to get into cryptocurrency. Over the past few months, we’ve seen sign after sign that cryptocurrency is poised to boom in a way that it’s never done before. It’s not just the one and a half year high that Bitcoin’s suddenly hit, nor is it just the impending approval of a bitcoin ETF.
It’s the upcoming halving of Bitcoin next year. It’s the way people around the world, regardless of their income, are turning to cryptocurrency as a haven from inflationary woes. Governments, too, are adopting cryptocurrency, in much the same way they stockpile gold and other precious metals. Bitcoin is just the tip of the crypto spear, too. As we see greater institutional adoption of Bitcoin, we also see more and more acceptance of cryptocurrency in general. The same infrastructure propelled by Bitcoin can be used across a variety of blockchain technologies, and this work is all setting the stage for good things to come. Altcoins like Dogecoin and Cardano have been on the rise too. Even though Bitcoin and Ethereum are getting most of the headlines and perhaps incentivizing the majority of cryptocurrency adoption around the world, this rising tide is lifting a lot of alt boats.
The writing on the wall couldn’t be clearer – this is the best time to get into crypto, especially if you’re not in it yet. Once a crypto-based ETF application is approved by the SEC (expected by the end of this month, if not the end of the year), or the U.S. develops a set of regulations in step with those already established by countries around the world (now in the works), or more people realize that the Bitcoin halving is going to drive up prices as it has each time in the past, investors can expect to see a spike in the value of cryptocurrency.
How strong is cryptocurrency as a hedge against inflation? If you ask Cathie Wood, it’s even better than gold – an extraordinary statement considering gold’s legendary status as a safe haven for investors during tumultuous economic times.
The founder of ARK Invest, Wood said to Bloomberg last week that she recommends acquiring and holding cryptocurrency “hands down” for the next ten years over any other commodity.
“Gold already has its demand, it’s happened. Bitcoin is new, institutions are barely involved,” Wood said during the interview. “Young people would much prefer to hold bitcoin than to hold gold.”
Wood’s faith in cryptocurrency is based on how it serves as a suitable hedge not only for inflation, but for deflation, too. Decentralized cryptocurrencies aren’t vulnerable in the same way that fiat currencies are when the market starts shrinking and deposits are being withdrawn. When that happens for fiat currencies, banks respond by selling securities or raising interest, directly impacting investors. That kind of risk is nonexistent for cryptocurrency investors, which makes it ideal as a hedge regardless of what national and global economies are doing.
Wood’s insights aren’t just theoretical, as she references how the regional banking collapse earlier this year caused Bitcoin prices to spike and thus “proved the concept” that people are looking for a decentralized solution for holding their assets.
As the number of people holding cryptocurrency assets around the world swells to new highs (including Ethereum’s new 100 million address milestone, it’s clear that for many people, businesses, and countries, there’s no looking back: the future of money has arrived, and its value is going up.