There are now over 500 different cryptocurrencies in operation, ranging from Bitcoin and Ripple to lesser known entities like Blocknet and Quantum. As these currencies have gained traction, prices and demand have inflated hugely. The price of Bitcoin has risen from around $0.04 in July 2010 to well over $2000 this year.
With astronomical gains from ventures such as Ripple Investment over such a short period, one can’t help but imagine turning back the clock and investing in such an opportunity.Still Time to Cash in on the Gold Rush?
Given the enormous rise of cryptocurrencies over the last year and the widely perceived view that the market has become a bubble, is it worth investing in these currencies now?
Bitcoin was the first cryptocurrency, but since its inception less than ten years ago, hundreds of others have been established. The chart above shows the return on investment (ROI) of eight major cryptocurrencies over the last few years. One would have to say though that Ripple was rather disappointing over the period, only returning a measly 1031.01%.
To say that the last two months have been extraordinarily fruitful is a bit of an understatement.
As incredible as this view is from the top of the mountain, with currencies this volatile, and free of any regulation, you can find yourself at the bottom of a valley pretty quickly.
An investment that can offer such reward is certainly not devoid of risk. With traditional major currencies, short of a default or black swan event, you can usually be pretty confident that a currency won’t swing by anything like the figures shown in the chart above. One would suppose that the intrinsic beauty of Cryptocurrencies lies in their unpredictability. Given the current notoriety...