Here is why you should invest in cryptocurrencies in 2020

Investing could be a remarkably positive endeavor for certain people or similarly harmful for others. Since the aim is to buy goods that are not consumed immediately but whose value should increase after a certain period of time, investing requires skills, knowledge, experience and sometimes luck. However, having numerous established and not-so-traditional options for investing could hinder the decision-making process, especially for newbies. The introduction of cryptocurrencies also made the situation even more complicated, and today we're going to check if digital assets are still one of the best investment opportunities in 2020. After the official introduction of Bitcoin in early 2009 and the thousands of digital assets that followed, cryptocurrencies became a massive hit with proponents and investors. In late 2017 and early 2018, also known as the parabolic price hike, it even caught the attention of the mass media, which ultimately triggered the FOMO (fear of missing out) and drove prices to impressive heights. The most popular representatives of digital assets, namely Bitcoin and Ethereum, hit their all-time highs of nearly $ 20,000 and over $ 1,400, respectively. What followed this rapid rise in prices, however, were equally deep drops. The following year, the entire market suffered a massive bear market as BTC bottomed below $ 3,200 in December 2018 and Ethereum fell to $ 80. These events led to serious speculation about price manipulation and temporarily distracted many investors from the market. Despite these fleeting moments, however, cryptocurrencies remained largely profitable investment opportunities. Bitcoin reversed its downtrend, closing 2019 at around $ 7,150. According to a study on the subject, it was the system with the best performance over the entire decade. $ 1 invested in the largest cryptocurrency by market capitalization in early 2010 would have been worth more than $ 90,000 at the end of 2010. This remarkable result means that BTC achieved an ROI of nearly 9,000.0000% in ten years. Even in the new century that started just a few months ago, Bitcoin is outperforming most traditional investment options. Data from cryptocurrency watchdog Skew shows that BTC's earnings are over 28% year-to-date, while gold is 18.72% and the US dollar is 4.35%. In contrast, the prominent S&P 500 index is down 2.34% and crude oil (WTI) is down 34.36% since the start of the year. While such price developments attract a specific group of investors, especially retail investors, the interest of institutional investors is crucial when it comes to the actual takeover in any investment area. And the demand from these investors has skyrocketed in recent years. A good example of this is one of the first US publicly traded companies to focus on digital assets and blockchain technologies - BTCS. The company recently announced that it will steadily increase its holdings for the second quarter of 2020. BTCS grew its digital asset positions to more than $ 1 million, an increase of more than 130% compared to the first quarter. The company said it increased its Bitcoin and Ethereum holdings by accumulating 33.7 BTC and 1,319 ETH during the April-May-June period. BTCS cited growing demand from its institutional clients and the company's ability to achieve high value as the main reasons for these purchases. It is also worth mentioning that the BTCS plans to further diversify its portfolio in order to offer institutional investors even more alternatives for entering the cryptocurrency space.