Should an Entrepreneur Invest in Crypto?

You can’t glance at the news without mention of crypto. But, should an entrepreneur invest in cryptocurrency? The word entrepreneur invokes thoughts of those who embrace success through expert calculation and unwavering bravery.

We recently chatted with Cam Secore to address whether an entrepreneur should invest in cryptocurrency. Cam grew-up with the web, seeing great opportunity for communication and commerce. Cam communicates and educates followers in numerous ways, his YouTube channel and product review site among the most celebrated.

cam secore

Is It Safe to Invest in Cryptocurrency?

Versions of cryptocurrency date back to Bitcoin’s 2009 birth. For some, it’s nothing but a passing fad, a method of losing money. For others, cryptocurrency attracts daring business types – a subset of entrepreneurs.

But entrepreneur doesn’t mean foolhardy. Entrepreneurs are known to take risks but what are the risks of cryptocurrency?

The eldest cryptocurrency, Bitcoin, has been around for over a decade. But as a currency, it’s relatively young and there’s little historical data to use for conservative projections.

Secondly, some believe storing and exchanging cryptocurrency leaves users vulnerable to cyber attacks. So, while it’s convenient to store and trade currency, it’s equally opportune for hackers to steal.

The immense increase in the number of cryptocurrencies makes skeptics believe few will actually succeed. As of early 2021, over 4,000 types exist. However, 20 cryptocurrencies account for a whopping 90% of the market!

number of cryptocurrencies

Lastly, governments remain divided on cryptocurrency. Will regulators ultimately condemn cryptocurrency, similar to China’s stance on Bitcoin? Or, as with El Salvador, will governments around the world embrace types of cryptocurrency as legal tender?

Robinhood – A Current Cryptocurrency News Tale

You can trade cryptocurrency by using the Robinhood app. It was the app of choice during the meme-stock movement earlier this year. Of late, Robinhood prepares for its I.P.O., which takes place amid news of $70 million in fines and an enormous reliance on Dogecoin.

17% of Robinhood’s revenue comes from cryptocurrency trading. And, one-third of that comes from Dogecoin alone. Such dependence gives skeptics a stable platform. However, Dogecoin remains one of the world’s largest cryptocurrencies.

price of dogecoin

Some believe Robinhood’s aggressive communication and fee-free offerings gamify investing; a top regulator in Massachusetts seeks to ban Robinhood from the state. And, billionaire investor, Charlie Munger calls it a “gambling parlor masquerading as a respectable business.”

While Robinhood’s I.P.O. and reliance on Dogecoin fill recent news, some entrepreneurs and investors believe bitcoin and ether are reliable long-term investments.

Invest in Cryptocurrency: Bitcoin or Ethereum?

Cam is a heavy proponent of Bitcoin and Ethereum and invests in both forms of cryptocurrency.

bitcoin or ethereum

Bitcoin

Cam recalls how we’ve adopted many forms of currency through time, including seashells and cattle. However, he cites gold’s detachment from the “value of the dollar” as an attraction.

Some gravitate toward gold in the same manner as art. As a collector, there’s gratification in owning something rare. But, as an investor, those items are detached from the fluctuation of a centralized currency. Cam states, “Bitcoin is an improved version of gold. Yet, it offers more use cases.”

price of bitcoin

In addition, there’s a finite number of Bitcoin – it’s capped at 21 million coin whereas centralized forms of currency may be produced at will. This makes Bitcoin attractive to entrepreneurs who prefer long-term investments.

Ethereum

Cam sees investing in a few forms of crypto as a way of diversifying his portfolio. He’s a believer in the longevity and legitimacy of leading forms of cryptocurrency, such as ether offered by Ethereum. It’s attractive to entrepreneurs because, similar to Google, Ethereum is a diverse tech brand.

Ethereum is a platform that presents opportunity for developers to build other apps on it. So, Cam uses this feature as a way to express how entrepreneurs can find alternatives to banking and seeking small business loans. A savvy entrepreneur can leverage acquired crypto assets as collateral to seek funds in real time.

“I can get a loan for any amount in minutes as long as I have proper collateral,” he offers. “For example, I could get a $10,000 loan by putting-up 20,000 in ethereum, essentially taking-out a loan against my crypto.”

price of ethereum

NFTs or (non fungible tokens) are part of Ethereum’s blockchain. Therefore, Cam is naturally curious and investing in a bunch of NFTs.

Bitcoin and Ethereum are heavily favored in relation to others at the moment and analysts suggest splitting crypto investments 50/50 to benefit from both. Others suggest adopting an overall conservative approach, keeping investments in crypto to under 5% of one’s portfolio.

Miami is not far away from neighboring Latin American countries and regions. As Miami attempts to rebrand itself as a hot new fintech hub, there’s increased interest in how Hispanics will adopt associated services.

Crypto in Latin America

A little more than half of the American population invests in the stock market. And, 28% of US Hispanics do so. However, those in Latin America may begin to endorse crypto more rapidly. For, LATAM residents have few options regarding banking and remittances.

El Salvador’s implementation of bitcoin is but weeks away. The country’s leader has challenged installers to put 1,500 (vs 1,000) ATMs in place throughout the country. Currently, 70% of El Salvador’s population does not have a bank account or an easy solution in sending and receiving funds.

Some believe a government-backed Bitcoin wallet would solve banking problems for El Salvador’s natives. Yet, just 45% of them has access to the Internet. It’s believed additional Latin American countries, such as Brazil, Panama, and Nicaragua, have future plans to discuss cyber currency.

Read more about Cryptocurrency in Latin America

Credijusto made news being the first fintech to purchase a traditional bank, the first ‘neobank’ in Mexico. The neobank concept is proving successful in Latin America; Nubank, a Brazilian-based startup, raised another $750 million (which followed another $400 million) in Series G funding.

Should an Entrepreneur Invest in Cryptocurrency?