Despite the plummeting in the cryptocurrency market during the last month, the craze to keep buying digital assets isn't showing any signs of slowing down or disappearing any time soon.
Instead of panicking for the recent price declines, many investors have seen an opportunity to acquire more digital coins.
For instance, last month in Ireland an entrepreneur opened a coffee shop that accepts digital currencies as a form of payment. But beyond that, the idea of the owner is that his establishment becomes more like the point of reunion for people interested in the cryptoeconomy.
Stories of people who have become millionaires by buying low and selling high are the kind that attract more and more investors into the digital market, looking to be the star of a similar tale.
Just in the last year, the price of Bitcoin went from $952 USD up to a high of $19,800 in December. But there is also the other side of the coin: although it has recovered in the last few days, Bitcoin was below the $6,000 threshold at the beginning of February.
And we are talking about only of the most popular digital asset in the world, but new cryptocurrencies are created every day. Other famous altcoins such as Ethereum, Litecoin, Ripple, Dogecoin or ATMCoin are some of the estimated 1,400 available in the market for investors.
Successful businessmen, such as John McAfee -founder of the software company McAfee-, believe that cryptocurrencies are the future of the world economy, while other financial gurus like Warren Buffett, one of the richest men in the world, argue that digital assets are a scam.
But for the people with knowledge on the matter, the importance of all this lies in the technology behind the cryptoeconomic concept, the Blockchain, to the extent that now there are countries considering the possibility of launching their own cryptocurrency.
"There are some who say it’s a bubble, but it’s my belief that, if they understood the technology, they wouldn’t be saying it," said to the Irish Times Vivian Callaghan, who trades and invests in cryptocurrencies, adding that it’s still “a very young” industry, and people need to do their research before investing.
"If you do it on a whim, there’s a strong risk you’ll lose money," said Callaghan, adding that regulation is needed in the sector in order to be more stable and reduce the risk of become victims of a Ponzi scheme.
By Alejandro Cortés