There are a few big reasons why the stock market won’t be going anywhere anytime soon. Despite the many advantages of cryptocurrencies as a form of digital asset in projects on and off the blockchain, it’s still not ready to take center stage in the world of finance. Here are just a few reasons why.

Please Note: This is me just telling you about my personal experience so far so good about investing on the only legit cryptocurrency investment platform i have seen online, I am in no way trying to advertise or give you a financial advise on how to spend your money. You can make your research and if you find the platform deem fit then you can go ahead just like i did.

1. People like to stick with the safe and familiar

Rational thought does not always govern our decision-making. People, for the most part, prefer to stick to the things they know regardless of whether a less familiar option would be more beneficial.

But familiarity is only a part of this tendency to avoid risks.

After breaking into the mainstream majority in 2017, crypto markets experienced an unprecedented boom, followed by a foreseeable plummet that hit a lot of market participants and companies hard. The impression made on the public was that crypto is dangerously unstable, despite the fact that, during the same time period, the stock market also experienced one of its most volatile periods to date.

Confirmation bias makes this truth a little harder to digest. For many new crypto users, the crazy highs and lows is a big deterrent. In time, and as more and more cryptocurrencies embrace the benefits of legal recognition and compliance, the Cryptosphere will stabilize and redeem itself in the eyes of the cautious.

2. Cryptocurrency legislation is still in its infancy

Cutting out middle-men is what crypto was initially all about. Decentralization means fewer intermediary fees and more power in the hands of the actual asset holders, addressing the monopoly of banks and their skewed power over people’s finances.

This vision directly contradicts the way the current financial system works, which relies on centralized institutions (i.e. the Federal Reserve or European Central Bank) to determine how money is used. While financial laws help deter money laundering, fraud, and criminal activity, they also resulted in a bulky and bureaucratic system that benefits banks over the private consumer.

Cryptocurrencies don’t have such a burden, but this also means that they are difficult to integrate into the highly-centralized system of fiat finance. Establishing laws for crypto, without authorizing an authority to execute the consequences, is complex.

3. Many crypto exchanges and companies remain unregulated

Despite the legal challenges crypto faces, there have some great strides. There is an increased demand for legitimized crypto services, and forward-thinking companies 

Being strict with compliance laws and KYC/AML procedures, for example, is how we strive to give crypto the credibility it deserves. Many crypto services still get away with being loosely regulated, but based on how huge corporations, Facebook being the most recent example, are dipping their toes into cryptocurrencies, this will soon change for the better.

Stocks are Here to Stay and So Is Crypto

While cryptocurrencies have the potential to outshine stocks one day, for the moment both markets are here to stay. Diversifying your assets is important for any trader, so why limit yourself to one or the other?

Credit: Wilfred Edmund