(P) Cryptocurrencies are here to stay! How can you profit from them?
Cryptocurrencies are a long-term investment opportunity for both individual investors and companies, not a get-rich-quick scheme, is the conclusion of the NRCC Investment Opportunities: Cryptocurrency webinar organized by the Netherlands…
Cryptocurrencies are a long-term investment opportunity for both individual investors and companies, not a get-rich-quick scheme, is the conclusion of the NRCC Investment Opportunities: Cryptocurrency webinar organized by the Netherlands Romanian Chamber of Commerce (NRCC) on May 11.
While experts believe there’s a lot of growth potential ahead for cryptocurrencies as more users discover their advantages, they warn that new investors in crypto-assets must educate themselves about these instruments and their risks before jumping in.
“If you don’t have Bitcoin, this is the right time to buy. There’s still a lot of growth ahead. But you need to be patient,” said Constantin Rotariu, co-founder and COO of Bitcoin Romania. He recommends an investment period of minimum three years to those who want to get into Bitcoin.
“Cryptocurrencies and crypto-assets represent a long-term opportunity. This universe is growing rapidly. But you need to invest in educating yourself about crypto-assets and their risks and benefits. This is not a get rich quick scheme,” added Michael Huertas, Partner & Co-Head of Financial Institutions Regulatory Europe at Dentons law firm in Frankfurt.
Cryptocurrencies and blockchain technology also represent an opportunity for companies, not just individual investors, according to Maarten Oonk, Director Deloitte Center for the Edge. “From a corporate perspective, you shouldn’t just jump on the bandwagon. Find the benefits that are best for your company and how you can use this technology most efficiently,” Oonk said.
What are the benefits of investing in cryptocurrencies?
The biggest advantage of a cryptocurrency such as Bitcoin is that it is decentralized and doesn’t depend on any entity or state, unlike traditional (fiat) currencies that depend on states, explained Constantin Rotariu, Founder and Owner of Bitcoin Romania. This eliminates the inflationary factor of fiat currencies, where central banks can print more money, and the existing money in circulation loses its value.
“Cryptocurrencies come in a limited amount, which means their value will only grow as more individual investors move into these assets. Bitcoin is an alternative to place our money on the long term and protect against inflation,” said Rotariu.
In the case of Bitcoin, the current amount of coins in circulation is about 18.7 million, and the maximum supply is 21 million coins, which should be reached after 2100. Thus, the number of new Bitcoin created will continue to decline until the maximum limit is reached. Meanwhile, the demand will continue to increase as more investors will move into Bitcoin, Rotariu explained.
“Bitcoin was the first blockchain project, and it appeared after the financial crisis of 2008 caused by the financial system. It aimed to provide an alternative to the current financial system, where not everyone has to pay for the mistakes of a few. While in its early phases, Bitcoin attracted a few libertarians and Silicon Valley investors, in recent years, large public companies started to invest heavily in Bitcoin. Imagine if these large corporations place only 10% of their cash reserves in Bitcoin,” said the Bitcoin Romania co-founder.
