Many investors are still on the bench when it comes to investing into cryptocurrency. There is still skepticism as to whether it's a viable investment. but as the growth of crypto pushes on, more and more people are coming around and hopping into the bandwagon.

<center><img src="https://i.imgur.com/puF0m9P.jpg" /><br/><em><sub><a href="https://pixabay.com/en/money-coin-investment-business-2724241/">Source</a></sub></em></center>

Even if the more developed nations are hesitant, countries that are suffering fro economic hardship are already jumping onboard. In nations where economies are struggling, hedging against their failure is where crypto has much to offer. Investors normally see crypto as the volatile one while fiat is more steady, crypto is less volatile and more stable in those failing economies.

Advanced economies that are still above water still see an increase in investors. The younger generation is the major source in influx. More people are investing in crypto, whereas they weren't investing into anything before (myself included). Virtual currencies are being looked into by financial institutions, regardless of a blockchain basis. A Fed digital currency could show up in the near future.

Cryptocurrencies are bubbling up into the mainstream. The National Bureau of Economic Research now praises the king of crypto Bitcoin as having good investment potential. A [working paper](http://papers.nber.org/tmp/37004-w24877.pdf) titled *Risks and Returns of Cryptocurrency* recommends that a savvy investor portfolio contain at least 6% in Bitcoin.

Te authors mention a positive risk-return trade-off to set it apart from traditional investments like stock. Cryptocurrencies have little to no exposure to *"most common stock market and macroeconomic factors"*. This makes it a good choice for optimal portfolio construction. There is a much higher potential for returns despite their volatility, when looking at Bitcoin, Ethereum and Ripple.

For those who are a still skeptical and think 6% is too much, 1% is suggested to at least get in on the potential return. If everything works out, holding onto a crypto investment can pay magnitudes more than other investments in the future.

There is much speculation about the future value of bitcoin. Some say the end of 2018 will see a return to $10,000. Other says 25,000 and even $50,000. In a few years, some have speculated bitcoin's value at the hundreds of thousands. If you could make back 10 times or more from investing in bitcoin or other crypto, it's a worthwhile risk to take.

More investment companies are incorporating cryptocurrencies. Some like Grayscale Investments who are behind the Bitcoin Investment Trust (OTC: GBTC) reported in July that they were investing on average $6.04 million each week. That's a lot of money going into buying up crypto. It might be small compared to what a firm puts into the traditional market, but I think it will just get bigger.

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**Thank you for your time and attention. Peace.**

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References:
- [Every Financial Portfolio Should Include Bitcoin, New Research Paper Suggests](https://www.ccn.com/every-financial-portfolio-should-include-bitcoin-new-research-paper-suggests/)
- [Risks and Returns of Cryptocurrency, NBER Working Paper No. 24877, Issued in August 2018](https://www.nber.org/papers/w24877.pdf)

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