Call it a bubble if you like, but can you really afford to stay out of cryptocurrencies? ‘Cryptomania’ was unquestionably the major talking point of 2017.
Mainstream channels stayed away from it early in the year, while the flying pace of the cryptocurrency gauged the attention of grandmothers. By mid-2017, however, Bitcoin exploded above $3000 for the first time and the mainstream channels began to dedicate serious airtime. This fuelled a plethora of “record price” headlines for not only Bitcoin, but also for the other major alternative coins.
In 2018, Bitcoin — the king of cryptocurrencies — has had a much weaker start, starting the year on a lower note for the first time since 2015. In late December 2017, many players in the crypto market began to think the cryptocurrency bubble was about to burst when it dropped below $11K. However, bargain hunters took the full leverage of this opportunity which helped break the ice for Bitcoin, pushing it above $14K in a flash.
Nonetheless, BTC still finished the year with a gain of 1,369%. Looking at this number makes you think that there is no doubt that it is a bubble, because gains like these are unprecedented.
The question is: can you make money while still thinking there is a bubble? Giving a straight answer; if you can afford to lose an amount which won’t make any meaningful difference to your life, then by all means, dabble. An average American aged between 20-64 earns approximately $27-50K a year, So, in a scheme of things, 100 dollars invested in cryptocurrency has a minuscule probability to impact anyone dramatically.
The rewards are undoubtedly there. From the below chart it is clear, $100 invested in Ripple last January would by now have yielded $35,259 (including your initial investment of $100): an astonishing gain of 35,159%.