Is It Worth Investing In Diem Coins? The Full Guide
Whichever way you look, you see cryptocurrency; these days it is practically everywhere. It’s no longer in the Nerd domain; In fact, many traditional legacy businesses are starting to integrate cryptocurrency and blockchain technology into their payment platforms in some form.
The shift to cryptocurrency provides consumers with greater choices, independence, and opportunity. Moreover, the decentralized, open-source nature of cryptocurrency could “bypass” the weak points of the banking system.
The record rise in value of Bitcoin, Ethereum. Litecoin etc., raises the question: is it worth investing In cryptocurrency?
According to many experts, the fact that Bitcoin has reached an all-time high, combined with the adoption of cryptocurrency by legacy financial institutions means that cryptocurrencies (and digital currencies in general) have become at last an important part of finance and FinTech.
When it comes to investing, people should consider cryptocurrency investment like investing in any other “regular” asset, i.e. balance advantages against risks, be aware of your available funds, find out options and alternatives, and then decide.
Is Cryptocurrency A Good Investment?
Cryptocurrency in general is positioned at the (very) “high-risk” end of the investment spectrum. This is due mainly to the price volatility of most cryptocurrencies; some can crash, others are scams or frauds. This does not preclude the chance of occasional increase in value, thus giving a good return on the investment.
Even experts say that cryptocurrencies could remain either “niche” or mainstream investments,(and anything in between). This is why it should be considered as very high risk. In the UK, for example, the Financial Conduct Authority has banned – starting January 2021 – the “sale of complex derivatives that speculate on cryptocurrency movements. Firms will be prohibited from offering retail customers contracts for difference, spreadbet options, futures and exchange traded notes that focus on digital currencies”.
This is where Diem’s biggest and most significant advantage lies: The fact that it is really a “stablecoin”. (Stablecoins are a newer class of cryptocurrencies, designed to offer the best of both worlds: instant processing, security and payments privacy of cryptocurrencies, as well as value stability of fiat currencies).
Those looking to invest in cryptocurrencies are probably aware of the volatility in the value of Bitcoin and other similar currencies. Potential investors who plan on steady gains ought to maybe look for stablecoins..
Therefore, those looking to invest in a cryptocurrency, should definitely consider the Diem. It was first proposed by Facebook (under the name “Libra”), and had the backing of several big financial institutions. It has since then been renamed as Diem and now is backed by the Diem Association (which counts among its members firms like Temasek Ventures, Shopify, Uber, Spotify, Kiva, Andreessen Horowitz, and others).
Is It A Good Idea To Invest In Diem Coin?
The Diem coin, unlike Bitcoin and other similar cryptocurrencies, is a stablecoin. The fact of being backed by real, fiat currencies not only adds to its reputability, but is also in line with one of Diem’s main goals – facilitating payments and funds transfers for unbanked populations.
Moreover, the fact that people can pay with Diem through Facebook’s interface can be a great benefit to investors and users alike.
The Diem Association has declared that the coin (quantity of which is still unknown) will be released later this year at a (US dollar-pegged) value of 1(!) USD, the idea being that the initial price will be very affordable thus enabling individual people to invest in the currency.
With the help of Diem tokens you will be easily able to move funds, and make transactions with them.
The payments system already works flawlessly, making it easy to pay with Diem while preventing fraud and protecting your financial data.
Developers will be surprised how easy it is to work with the open-source Diem API (like First’s) in order to develop and experiment with the Diem Blockchain
As with any investment, due diligence is highly recommended when considering cryptocurrencies investments. Moreover, do not put all your eggs in one basket (or one cryptocurrency): spread the risk.
The growing acceptance of cryptocurrencies by both individual and institutional investors is clearly paving the road towards renewed acceptance of virtual assets as a newly riing asset class, prompting a change in the way regulators (even the SEC!) consider this novelty.
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