The euro is coming under increasing pressure: Not from the dollar or yuan. Rather, Bitcoin and other cryptocurrencies are preoccupying the European central bankers . They see the success of digital money as a threat to monetary sovereignty. A threat to be fought off.
Bitcoin more and more accepted
Cryptocurrencies like Bitcoin have not yet fully established themselves. Nevertheless, dealers are increasingly creating opportunities. Whether pizza delivery, donations to a non-profit organization, software purchase or the car manufacturer Tesla – some dealers already accept it as a means of payment. Providers such as PayPal, Mastercard or Visa also want to include cryptocurrencies in their products. Investors and speculators have also made big money in recent years. In the past few years, Bitcoin, for example, has had an unprecedented rally from under 600 to 50,000 euros. But this is exactly where the great danger of cryptocurrencies as a means of payment lies: unlike the euro, dollar and yuan, they are not stable in value. Compared to the high, Bitcoin lost half of its value again; it has also recovered from this low.
Cryptocurrencies: Unregulated and volatile
But this volatility gives Bitcoin a reputation as an object of speculation. Especially since news and events have a strong influence on the course. Like other crypto currencies, it currently only fulfills its actual purpose as a digital means of payment to a limited extent. Inflation and negative interest rates also plague the euro, but the risk here is limited. In addition, there is an unregulated market for cryptocurrencies, even if governments and central banks are striving for more control. In the case of shares and other forms of investment, the levers are much narrower. The anonymity and hardly any regulation has also called on hackers and criminals. In the event of your own mistakes or third-party damage, there is a risk of total loss of your digital assets. So-called hard forks, i.e. splitting off existing crypto currencies through the open source code, also harbor the risk that another provider will prevail in the future. Capital increases or share splits on the stock market can also send prices down; however, investors have tools on hand to counter a loss.
Part of a diversified portfolio
In view of the considerable development, cryptocurrencies can be an interesting form of asset protection should inflation lead to further inflation. For a long time, gold served this purpose in view of its high value retention. So far, a limited number of investors still rely on crypto currencies. But they definitely have a raison d’être and contribute to a diversified portfolio. & nbsp; How much of your assets you should invest in cryptocurrencies and other forms of investment is best clarified with us in a personal conversation. Together we will create an individual investment strategy based on your needs.