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Sage Investment Advice for Millennials

23 August 2017 No Comment

If you are a relative novice on the investment scene, don’t be dissuaded. There are many worthwhile financial assets worth considering, and each of them is unique. Broadly speaking, there are 5 asset classes available to you today – indices, commodities, FX, stocks and cryptocurrencies. One of the most exciting new additions to the global trading arena is digital currency. Unbeknownst to many, digital currency includes hundreds of popular options. Bitcoin, Litecoin, Dogecoin, and Ethereum are the most pervasive, with the highest market capitalization.

Many folks are still in the dark about BTC and related technologies. The biggest question on everybody’s mind is: What is bitcoin mining? Simply put, it is a software and hardware intensive process of solving complex mathematical algorithms and being awarded with Bitcoin. Today, it is disingenuous to mine for Bitcoin on your own because the costs of doing so (electrical, computing, resource intensive nature etc.) are prohibitive. It’s far cheaper to buy Bitcoin, and other digital currencies than to mine it.

In recent weeks, we have seen a tremendous upsurge in interest for Bitcoin. The price broke through the critical $3,000 resistance level, and quickly rallied beyond the $4,000 resistance level. By August 20, 2017, 1 unit of Bitcoin was trading at $4,100+. This is a remarkable achievement for a financial asset that is not backed by any central bank, regulatory authority, or controlled by any government.

In fact, part of the appeal of digital currency like Bitcoin is its decentralized nature. There are countless nodes on the BTC network where every user has control over the BTC trading process. A complex algorithm has proven impervious to manipulation, and has won the admiration of financial asset managers, banks, retailers and traders around the world.

Blockchain Adoption Wins Praise from Weiss Finance Experts

We are seeing the widespread adoption of blockchain technology. This peer to peer-based system makes it easy to track transactions, minimize costs and expedite transfers. There is no need for a middleman, thereby reducing overall costs and boosting the efficiency and effectiveness of operations.

Bitcoin and other digital currencies are playing an increasingly important part in financial portfolios today. Consider the market capitalization of Bitcoin and Ethereum as cases in point. Given the high volatility of digital currency trading, it is tough to pin down a market cap of any permanence, but the latest figures indicate the following:

  • At a price of $4,121.14, BTC has a market capitalization of $68,071,700,603 (August 20, 2017)
  • At a price of $296.48, ETH has a market capitalization of $27,906,926,363 (August 20, 2017)
  • At a price of $46.57, LTC has a market capitalization of $2,446,657,681 (August 20, 2017)

Just these 3 cryptocurrencies alone are worth an estimated $100 billion. If Bitcoin drops by 20%, which it can, that market cap becomes $80 billion, but it is still substantial. Many millennials are taking an interest in digital currency, because they understand blockchain technology more than the previous generation.

Financial management consultants such as Weiss Finance trading expert Sanford Berman, believes that we are in the infancy stages of a generational shift in investing practices:

There is no doubt in my mind, or among my peers, that the paradigm has shifted. There is increasing emphasis being placed on digital currencies. Conventional assets such as stocks, commodities, indices and currency pairs are now making room for non-conventional – ‘Contrarian’ – investments. We should embrace these changes, and adopt blockchain technology wherever possible to make transactions efficient. Many trading platforms are looking to incorporate additional banking methods such as BTC for traders. There are many possible applications for this technology, and all signs are positive.’

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