Digital Currency has created a new buzz in the world of tech enthusiasts and cybersecurity experts. Well Cryptocurrency is one of the most searched keywords in Google. After a boom in 2018 and then a decline Cryptocurrencies are widely used for trade recently and many investors have opted for trading as a substitute to the already loss making business due to the global pandemic. Moreover the lockdown period which was imposed worldwide has seen a major surge in the trading of cryptocurrency

Cryptocurrency is the current talk in the business circle especially with investors who look for quick money with minimum risk. . Every second person is mulling over the idea of investing in cryptocurrencies. Amidst all the hype, not many are aware of the good and bad of cryptocurrency. So, are cryptocurrencies the most lucrative investment at present? Is investing in cryptocurrencies secure? What returns would it provide?

According to a report by CNBC , CEO of BlackRock Larry Fink while speaking to former Bank of England Governor Mark Carney at the Council on Foreign Relations, said the nascent cryptocurrency asset class can possibly “evolve” into a global market asset. According to the report, Fink also said having a digital currency has a real impact on the U.S. dollar, making it less relevant on a global scale for international holders of dollar-based assets.

XRP has been one of the most surprising beneficiaries of the recent market-wide uptrend, with the previously embattled cryptocurrency exceeding Bitcoin’s gains over a short time frame while also outpacing Ethereum and other major altcoins.

Its strength came about following the break above a multi-year trading range that it has been stuck in between $0.20 and $0.30. Once $0.30 was flipped into support, it began its parabolic ascent.

The report highlighted that the crypto market even after growing so much boasts of around 100 million users globally. Investor Raoul Pal who’s very popular among the crypto circles has made a big revelation recently. Pal plans to liquidate all his Gold holdings that is around 98% of his liquid net worth. and put it all at work by buying Bitcoin (BTC) and Ethereum (ETH). This speaks volumes about the confidence that Pal holds in the future rally and earning potential with the two cryptocurrencies.

Many crypto analysts are betting big on massive institutional money coming into digital currencies in 2021. The quantitative easing and massive stimulus by the Federal Reserve is likely to drive inflation higher. Thus, institutions are likely to put extra cash at work and Bitcoin serves as the best inflation hedge. The Guggenheim’s filing with the SEC notes that it is planning to invest nearly $500 million in Bitcoin i.e. 10% of its $5 billion worth Macro Opportunities Fund.

If you analyze the recent developments by major companies like Pay Pal and Square to invest in the digital currencies the future seems to be quite bright for the retail investors .Though it holds great

potential for the future, the cryptocurrency market is still volatile. One should properly think through before making any investments in cryptocurrencies as it is still a high-risk asset.

UAE

Omnes' Editor