With Bitcoin and the cryptocurrency market growing at over 150% a year, it’s easy to see why long term investors have been becoming more involved in this new asset class.

But how do we know cryptocurrencies are a good long term investment?

All you need to do is ask yourself these 3 questions:

1. Is there mass adoption and growth?
2. Does it hold up in uncertain markets?
3. Does it solve a big problem that creates value?

Once you tick these boxes, you simply have to invest in the cryptocurrency itself or a diversified basket of cryptocurrencies that provide exposure to the specific area of growth that you find. 

Then all you need to do is hold the investment you’ve made for the long term. 

So let’s get to it and answer the 3 questions above.

1. Are cryptocurrencies seeing adoption and growth?

Technically, cryptocurrencies are the fastest growing technology in human history. It’s actually growing faster than the internet.

The cryptocurrency user-base is growing at over +100% a year — well ahead of the adoption rate that the internet saw back in the 1990s and early 2000s, which was around +67% per year as you can see below. 

We’re living through a remarkable time in human history with the evolution of money, banking and financial services all occurring at hyper speed.

You have to ask yourself, isn’t this opportunity just too important to miss out on? 

How do I take advantage of this growth and invest in it?

In 2021 there were over 300Mn people using crypto worldwide. By 2024, cryptocurrency will still hit 1Bn users — even with a growth rate that is only 80% of the current rate. . That means 1 in every 8 people will be interacting or using crypto in some way or another. 

This isn’t just a trend, it’s a long term financial solution.

There are some effortless and simple ways to invest in products out there. Revix is a Cape Town-based crypto investment platform, backed by JSE listed Sabvest. It prides itself on being the easiest way to instantly buy a sector-based diversified bundle of crypto assets or a single cryptocurrency at low costs. The Revix Top 10 Bundle, allows you to instantly invest in the crypto market as a whole through one investment vehicle — think of it like the S&P 5000 but for crypto. 

The Top 10 Bundle provides equally weighted exposure to the top 10 cryptocurrencies making up more than 75% of the crypto market. 

2. How do changing economic conditions impact my investment’s future?

We’re all familiar with the term “interest rates” and have seen interest rate hiking news flood our screens over the past few months.

But what does this mean for your investments?

When interest rates rise, two things happen: 

1. The cost of borrowing money increases
2. The amount of money in circulation falls

The idea is that if money is more expensive to borrow, fewer people will spend their money as they’re incentivised to save with higher interest in their savings account. According to theory, stock markets tend to move downward as analysts and wealth managers begin to price in increased borrowing costs and dampened demand. 

However, cryptocurrencies appear to buck the trend.

In the above graph, we can see that the US Central Bank raised interest rates 7 times between 2016 and 2018. Yet, if you stayed invested in Bitcoin, you would have received a +740% return at a time many expected it to go down. 

Crypto’s long term resilience against interest rate hikes

Over the long term, it is becoming evident that changes in interest rates, both up and down, have only had a limited impact on the price of cryptocurrencies. This is most likely due to investors’ continued belief in this emerging asset class’s ability to be a store of value and/or provide value through use-cases. 

Given that the market has priced in 4 to 5 interest rate hikes starting from March 2022 — why would you not want to hold an asset class that, based on history, seems to go up during this time? 

Investing in the cryptocurrency market as a whole has proven itself as the best way to stay invested for the long term. You can invest in a diversified bundle that tracks the crypto market at the click of a button through the Revix Top 10 Bundle. 

3. Do cryptocurrencies solve a problem and create value? 

Simply put, yes.

This is an asset category that solves a multitude of problems, financial and non-financial, that currently plague the world. 

Here is a list of a few of the main problems we see that crypto is solving:

1.Remitting money offshore:

This market is believed to be as big as $1Tr and is costing many people around 7%-15% to send money back home. 

Solution:

Payment focused cryptocurrencies allow the transfer of money at a fraction of the cost and at near-instant speeds. 

How to invest:

You can find a payment focused ready made crypto bundle offered by crypto platform Revix. This Bundle is an index based offering which provides equally weighted exposure to the top 5 payment focused cryptocurrencies looking to make payments cheaper, faster and more global.

2.High inflation and currency devaluation: 

We have all been subject to money printing and the weakening of our buying power through high inflation for far too long.

Solution:

Bitcoin and many other cryptocurrencies solve this issue by programming in a fixed supply and a decreasing inflation rate.

How to invest: 

Revix offers an easy-to-use platform that allows you to buy Bitcoin at the click of a button.

3.Tokenisation:

Due to the devaluation of your currency and inflation, many investment’s/assets are too expensive nowadays to purchase outright. Many people can’t buy expensive investments, like real estate.

Solution:

Tokenisation can help people buy a portion of a house to hold it as an investment. 

How to invest:

The Smart Contract crypto sector is the backbone of tokenisation. If you wish to invest in the Smart Contract sector using a low cost, diversified index-based approach then you can buy Revix’s smart contract focused bundle here. Their Bundle provides equally weighted exposure to the top 5 smart contract-focused cryptocurrencies that enable developers to build applications on top of their blockchains.

Do Revix’s Bundles really outperform single cryptocurrencies?

Yes,  they do this by creating an easy-to-use product that takes advantage of diversification and monthly rebalancing.

We can see above that the Revix Crypto Bundles outperform each major cryptocurrency in its sector.

So why risk it all on a single asset when you can hold a bundle and outperform?

Crypto Bundles enable you to effortlessly own an equally-weighted basket of the world’s largest and, by default, most successful cryptocurrencies without having to build and manage a crypto portfolio yourself. Revix currently offers the three Bundles above, namely the Top 10 Bundle, Payment Bundle and Smart Contract Bundle.  DM/BM

About Revix

Revix brings simplicity, trust and great customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.

Remember, cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency. 

To learn more visit www.revix.com.