Cryptocurrencies cannot be compared with the common currency you have in your pocket. They can also not be compared to currencies of other countries. Stocks also rarely go up in price fast enough to allow one to make a quick profit. Investing in Cryptocurrencies may be a good option for those that are bored with slow upward moving stocks.

Returns on government bonds and treasury bills are also tiny when compared to returns investors have made in buying and selling cryptocurrencies. Seven years ago, a Florida programmer named Laszlo Haneyecz bought two pizzas with 10,000 Bitcoins.

His 10,000 Bitcoins were worth only $41 back then. If he had held the coins until today, they would be worth 28.4 million U.S dollars.

Why the prices of these currencies is rising

The Rising in the price of Cryptocurrencies could be as a result of speculation. Many people buying any of the currencies want to hoard and make a big profit in the long term. Many analysts expect the price of Cryptocurrencies such as Bitcoin to keep rising.

Investors could also be diversifying into cryptocurrencies because they are not affected by recessions or inflation, this is because they are not tied to an economy or a company's profits.

Stocks are also slow moving when it comes to increasing in price while government securities are less profitable.

The other reason is that Cryptocurrencies are not widely used due to lack of government regulation and support. More people are also getting to know about Cryptocurrencies and their benefits such as zero costs while making online payments as compared to credit cards that charge a processing fee.

One can also use cryptocurrencies to make online payments anonymously.

Top Cryptocurrencies whose price has risen exponentially in the past one month

Bitshare: The price of one Bitshare a month ago was $0.037, its price now is $0.33, this is a rise of 691 percent.

Etherum: Its price a month ago was $91, its price now is $345.

The currency has thus increased by 279 percent.

Etherum Classic: Its price was $6.5 a month ago, its price now is $21, this is an increase of 232 percent.

NEM: The price of one NEM has doubled in one month from $0.11 to $ 0.22.

Caution when buying and speculating in Cryptocurrencies

Just like the dot-com bubble, this could be a bubble that is about to burst as well. Some countries have also banned its use. It is thus uncertain whether governments will accept Cryptocurrencies in future and whether they will enforce crackdowns on those involved in the Cryptocurrency market.

The former U.S federal reserve chairman Alan Greenspan called the Cryptocurrency market a boom that is about to burst because of the number of Cryptocurrencies that have so far been created while the Cryptocurrency market was called a Ponzi scheme by the central bank of Estonia.

The total number of cryptocurrencies that have been created is estimated to be more than 1,000. Several central banks around the world have warned its citizens against buying the currencies.
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