Cryptocurrency is one of the most hotly debated asset classes in the world. On one side, passionate advocates view it as the currency of the future, supplementing or even substituting money as we know it. On the other side, certain experts say that investing in cryptocurrency is a fool’s game — and that most, if not all, investors will eventually lose their money by investing in it.
Learn More: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You
Find Out: 3 Things You Must Do When Your Retirement Savings Reach $50,000
But the first step in successful investing is to remove emotion from the equation. With that in mind, here’s an unbiased examination of the facts surrounding crypto and a look at whether or not it might be a suitable investment for your retirement savings.
What’s the Potential Upside to Investing In Cryptocurrency?
When cryptocurrencies like bitcoin are running, they can provide astounding returns.
In 2013, for example, bitcoin posted an eye-popping 5,189.37% return, followed up by an enormous 1,162.50% gain in 2017. Over the past 12 years, the crypto has had an average annual return of 105.1%, meaning on average, it has more than doubled every single year of the last 12.
Those types of returns dwarf those of the S&P 500, which has “only” gained 14.40% per year, or 431.68% in total.
Try This: 2 Best Ways To Invest $1 a Day — and What It Can Grow To
What Are the Risks?
As with any asset class that has such a potentially extraordinary upside, the risk of loss when investing in crypto is also high.
According to a study by Coin Kickoff, more than 2,500 cryptos “died” from 2013 through 2022. This clearly shows that you risk losing all your money if you pick the wrong crypto.
Even industry leader bitcoin, which is by far the largest of all cryptos, has lost more than half its value during three calendar years: 2012, 2018 and 2022. In those years, bitcoin posted returns of -50.19%, -72.13% and -62.02%, respectively.
Do Any Reputable Financial Experts Support Investing In Crypto?
Suze Orman is probably the most well-known financial expert who supports investing in crypto. As Orman told CNBC, “Everybody should absolutely have exposure to bitcoin.”
But it’s worth noting that Orman doesn’t believe that crypto will change the world and become a new…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
