Cryptocurrencies investing is evolving and we are noticing demand for cryptocurrencies being driven by two different types of investors.
Those investors wanting to escape from monetary inflation the ongoing debasement of fiat currency are buy cryptocurrencies as a way of hedging against inflation. “Dogecoin is the middle finger to traditional finance” said long-time crypto bull Mike Novogratz.
“Dogecoin is the middle finger to traditional finance”
So, ideology is driving this type of cryptocurrencies investing the idea that the creation of currency should be decentralized, transparent on the blockchain, a system for recording information that makes it difficult or impossible to change. In other words, an encrypted digital ledger held on a network of computers.
But we also note another type of cryptocurrencies investor who is driven to cryptos because they believe the token satisfies a certain environmental, social, and governance criteria.
This particular group of investors is buying into an ESG philosophy.
So, for example, environmentalists will have their cryptocurrency, animal wealth fare groups will also have their tokens and those believing in a more equitable charitable world will also have their distinct cryptocurrency.
“we also note another type of cryptocurrencies investor who is driven to cryptos because they believe the token satisfies a certain environmental, social, and governance criteria”
WEALTH TRAINING COMPANY
In other words, this type of cryptocurrency investing is being driven by an investor’s belief system which could be why some cryptocurrency investors tend to be holders as they believe by holding onto their cryptocurrencies, they are being loyal to their cause. So, it is not just then the idea of making profits that could be driving some people to cryptocurrencies it could be ideological or sentimental reasons which are driving up demand for certain cryptocurrencies. Perhaps that is why some cryptocurrency investors behave like tribes of a community.
“cryptocurrency investors vary, some are driven by technology while others are driven by ideology and sentimental value” – Wealth Training Company
The impact cryptocurrencies are having socially is fascinating. We see certain cryptocurrencies supporting various sectors of the economy. In the future we see animal rights cryptocurrencies supporting animal welfare causes or the entire pet industry. Humanists could have their charitable cryptocurrencies.
Cryptocurrencies investors are also buying into the technology. So, this type of investor is attracted to the nuts and bolts that make cryptocurrencies work.
These investors are buying a piece of the decentralized, open-source blockchain with smart contract functionality. These investors see big gains in buying the protocol which acts as a fuel for enabling developers to build decentralized cryptocurrencies, smart contracts. Put another way these cryptocurrency investors are investing in the new oil of the digital age.
So, cryptocurrency investors vary, some are driven by technology while others are driven by ideology and sentimental value.
Who will outperform? The answer is blowing in the wind, after all, dogecoin started as a joke.
But our fifty cents worth is that long-term new oil of the digital age could be a safer bet.