2 Reasons to Invest in Crypto — and 2 Reasons Not To – The Motley Fool

2 Reasons to Invest in Crypto — and 2 Reasons Not To – The Motley Fool

Cryptocurrency is a relatively new type of investment, and it’s an intriguing option for many people.

During the crypto boom earlier this year, many types of cryptocurrencies saw their prices skyrocket. The price of Bitcoin (CRYPTO:BTC), for example, soared by more than 100% between the beginning of the year and mid-April. Ethereum (CRYPTO:ETH) was up by nearly 250% in that timeframe, and the price of Dogecoin (CRYPTO:DOGE) surged by more than 3,000%.

While prices have fallen off since reaching their peaks, those incredible returns have made cryptocurrencies impossible to ignore. If you’re on the fence about investing, there are two reasons you might consider buying now — and two reasons you shouldn’t.

Bitcoin token with stock market charts behind it

Image source: Getty Images.

Why consider investing in cryptocurrency

1. It could potentially become mainstream someday

Cryptocurrency has the potential to become life-changing. It could become a mainstream form of payment someday, it could provide a way to hedge against inflation, and blockchain technology — the foundation behind cryptocurrency — could also have an enormous impact on how we do business.

If crypto does become mainstream, its price could soar to new heights. Bitcoin is