Cryptocurrency prices have been taking a beating for the past year, with Bitcoin plummeting by 53.07%, and many other altcoins following suit. In such an aggressive bear market, many are wondering if cryptocurrencies and NFTs are showing their time is up. And given the many fluctuations we have seen in NFT and cryptocurrency markets so far, it would be easy to conclude that these are no longer reliable investments.
However, there are still some arguments in favor of cryptocurrency, and crypto enthusiasts aren’t ready to throw in the towel. In this article, we will discuss the main reasons why investors are still remaining optimistic despite the market slump, and why crypto investments can still be considered as a good investment option.
Crypto is a Known Volatile Market
It’s long been known that cryptocurrency is a volatile asset, with dramatic price swings happening on a regular basis. While many speculate on specific patterns that crypto prices follow, and predictions come out of all sorts of places, nobody actually has a crystal ball that can forecast what will happen in the cryptocurrency market.
It’s that sort of mindset that leads to the most successful investment strategies – buying the dips, and holding the long term. It’s in this very spirit that Bitcoin is still a good choice as an investment, as the dips tend to lead to new high prices for the asset.
The only question is how long you’ll be holding until the price bounces. However, the decline in price is a good opportunity to buy in, as buying low is still the best investment strategy. Furthermore, you should only invest money that you can afford to lose – and make smart investments, such as buying crypto using a credit card that also offers crypto cashback rewards.
While we hear stories of people betting the farm on crypto and losing their life savings when they panic-sell in a bear market, imagine if they had just held on. With an asset like cryptocurrency, exiting at loss feels really dumb when the price bounces back, even if it takes a year or two.
NFTs Hold Technological Promise Beyond Daytime Trading
Non-fungible tokens are another hot topic, but they’re also widely misunderstood. When people think of NFTs, they often think of silly meme artwork selling for thousands of dollars. Thus, the NFT market became associated with purely speculative trading rather than the real value of the product itself.
What’s being missed in the mainstream, however, are the technological implications of NFTs. There are numerous practical use cases for NFTs, which include:
- Product authentication: NFTs can store vast amounts of information, which can be used to authenticate items. A QR code, for example, can share an NFT with unique hashes that prove the authenticity of a product.
- Real estate: NFTs can be used as a secure means of recording ownership rights to real estate, or tracking timestamped modifications to a property.
- Health: NFT ledgers are providing tamper-proof ways of storing medical records in several countries.
- Intellectual property: Once again, NFTs can store timestamps that prove without a doubt the original creation date of a work of art or a piece of intellectual property.
Those are just a few of the practical uses for NFTs, and there are many more. So while NFTs in the mainstream are currently seen as a sort of silly investment, because you mostly hear about meme artwork being sold for thousands of dollars, the technology behind NFTs has the potential to revolutionize many facets of society.