Are Cryptocurrencies Worth Investing in 2024? Here’s What You Need to Know

Ujjwal Maheshwari Ujjwal Maheshwari, June 5, 2024

Investors worldwide are pondering how to best capitalize on the recent growth in cryptocurrency and what risks and benefits are involved in digital assets in 2024.

Are cryptocurrencies worth investing in in 2024? What impact did the “bitcoin halving” have on the market? What are the use cases of cryptocurrencies in 2024? In this article, we will explore the answers to these questions.

After a volatile 2023, cryptocurrencies have started to rise again. Bitcoin hit its all-time high of $75,830 this year, followed by other digital assets also experiencing a similar surge. Strong inflows into the spot Bitcoin ETFs and the Bitcoin Halving event are the major reasons behind the recent crypto growth.


What is a Cryptocurrency?

A cryptocurrency is a type of asset that exists on a blockchain network, an immutable ledger that no government authority can control. In simple words, it is a virtual currency stored on a network of computers and can only be accessed by permitted users.

Bitcoin, Ethereum, Tether, Bitcoin Cash, Dogecoin, and Litecoin are some of the prominent cryptocurrencies on the market today. Just like traditional currencies, crypto can be used to make purchases online and in certain physical stores, but some people treat it as a long-term investment.


Why Should You Invest in Cryptocurrencies?

The main attraction of cryptocurrency is its decentralized nature and, of course, its potential for huge returns. The latter depends on the investor’s knowledge of blockchain technology. Creative options such as mining, staking, and setting up master node require technical expertise but can generate massive crypto returns.

Cryptocurrency transactions are not restricted by geographic barriers and do not require you to pay extra for overseas payments. Unlike banks, which take several days to process international transactions, crypto can be sent anywhere in the world within a few hours; typically, it only takes a few minutes.

Several major companies around the world have embraced cryptocurrencies, leading to increased public confidence in digital assets. With tech giants like Amazon and IBM offering blockchain solutions, it has become much easier for businesses to transform their operations to better fulfil the needs of their customers.

Notable companies accepting cryptocurrency payments are Newegg, Microsoft, Dell, Twitch, and AT&T. Having said that there are several online retailers, small businesses, and service providers that have been accepting crypto since 2015, and the list keeps growing every day.

The U.S. Securities and Exchange Commission recently approved spot Bitcoin ETFs (exchange-traded funds), which fueled the price of bitcoin. And now, with the SEC also approving the sale of spot Ethereum ETFs, its impact on the market is bound to shake things up.


Practical Uses of Cryptocurrencies: Online Gambling

The ability to make cross-border payments swiftly and at an extremely low cost is one of the biggest perks of cryptocurrencies. This is because there is no intermediary (such as a bank) involved in the process of approving a crypto payment, which cuts the time spent validating information by a significant amount while making the process cheaper.

One business that’s seeing the most benefit from crypto payments is Ignition Bitcoin Casino, a platform that’s attracting players from across the world due to its support for various digital currencies. As players don’t have to wait for days to receive their winnings, it provides them with a very dynamic gambling experience.

What’s more, the use of cryptocurrency allows for greater security while gambling, as it safeguards against identity theft, allowing users to make payments anonymously. The anonymity of crypto is a major draw for privacy-minded gambling enthusiasts.

In addition to anonymity, crypto advocates highlight lower transaction fees for casinos compared to credit card processors. And the lower fees mean more profit – not only for operators but also for the players themselves.

Overall, the extremely fast cryptocurrency transactions have transformed online casino sites into more global and frictionless platforms.


What is Bitcoin-Halving?

The bitcoin-halving event happens roughly every four years to reduce the block reward by 50%, a process programmed into the asset core. When miners successfully validate transactions and open new blocks, they are rewarded with Bitcoin. The periodic bitcoin-halving event reduces the number of new coins that would enter circulation to maintain the scarcity of the digital currency.

In theory, if there are fewer bitcoins for miners to sell, their prices will increase or remain the same, a measure to prevent inflation. As seen with the latest bitcoin-halving event in April 2024, the digital currency surged, reaching new highs.


What Risks Are Involved in Crypto Investment?

Like any investment, there are risks associated with cryptocurrency. The crypto market is incredibly volatile as the world is still adjusting to the new financial system. Market disruptions are often caused by forces attempting to regulate cryptocurrencies.

While the distributed ledger itself is immutable, some digital wallets can be easily exploited by hackers. Though this happens rarely, it all boils down to using the best practices to keep oneself safe. Several investors have lost their savings to bad management teams; it’s important to be able to identify bad actors in the business. You should always consult an appropriate professional before making any financial decisions.


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