Why Invest In Digital Assets

The Case For Censorship-Resistant Alternative Currencies

In light of the recent trends in the crypto market, analysts have declared that the “crypto winter” is over. (1) Facebook’s public announcement of project Libra and the price of bitcoin surpassing $10,000 for the first time since 2017 have also generated much interest in Bitcoin. Cryptocurrency communities online have also grown in the recent months, and some members of the communities are fondly recalling the exuberant market two years ago, when investments in initial coin offerings (ICOs) returned 82% on average, over an average holding period of 16 days (2). Regulators have since clamped down on ICOs and released new guidelines. Apart from the vastly different regulatory landscape, there are two key differences between the crypto market today and in 2017: both the recent level of interest in Bitcoin and its trading volumes are significantly lower than those of 2017. Some analysts have suggested that these divergent trends are indicative of institutional investors entering the market (3) – a sign of the market maturing.