Whether they want to buy it or not, investors, companies and brands can't ignore the growing cryptocurrency wave for long. The future prospects of cryptocurrency remain highly questionable. Defenders see unlimited potential, while critics see nothing but risk. Professor Grundfest remains skeptical, but he does admit that there are certain applications where cryptocurrency is a viable solution.
Cryptocurrency futures are contracts between two investors who bet on the future price of a cryptocurrency. They allow investors to gain exposure to certain cryptocurrencies without buying them. Cryptocurrency futures resemble standard futures contracts for commodities or stocks because they allow you to bet on the price path of an underlying asset. If you think that the use of cryptocurrencies will become more and more widespread over time, then it probably makes sense for you to buy some cryptocurrencies directly as part of a diversified portfolio.
I don't think it's very realistic to say that cryptocurrencies are simply going to die, blockchains will disappear, and cryptocurrencies won't exist. This volatility is a big part of the reason why experts recommend keeping your cryptocurrency investments at less than 5% of your portfolio to begin with. Instead of learning how to navigate a cryptocurrency exchange to trade your digital assets, you can add cryptocurrencies to your portfolio directly from the same brokerage that you already have a retirement account or other traditional investment account with. Nearly 40 percent of bitcoin holders have lost money on their investment, data from crypto intelligence firm Glassnode shows.
But it is worth considering where and how we will generate the energy to meet the demand of a growing cryptocurrency market, as well as whether state actors who see it as a competitor to fiat power will further turn it into a black market commodity. To learn more, The Washington Post spoke with Ben McMillan, chief innovation officer at IDX Insights, an asset management company that specializes in cryptocurrencies, along with Molly White, a software developer who manages the Web 3 Is Going Just Great website. If you're not willing to lose the money you invest in cryptocurrencies when buying on an exchange, you shouldn't put it in a cryptocurrency fund either.