P2P Investing vs Crypto Speculation
With yields on savings being low, the desire to look elsewhere to make yield has never been bigger.
Fear of missing out (FOMO) is pushing investors in to riskier asset classes such as crypto currencies, but it doesn’t seem wise, due to the speculative nature.
Why go so far as trying to gain profits from the unknown, its like listening to fake news.
The point I want to make here is that the industry is so new that nobody can tell you what the price of a certain token is and what the real value is.
Now lets have a look at the P2P lending market.
P2P lending has been maturing over the last year and 2018 is set to push it into a trusted asset class.
Obviously investments always carry a certain degree of risk, but the industry has done a lot over the past years to grow into a serious contender to traditional asset classes such as stocks and bonds.
Financial authorities are working close together to see if there are industry standards available, but due to a lack of response platforms have catered for transparency themselves.
P2P platforms have stepped up their game to show greater transparency, starting with publishing default rates and showing net results instead of gross.
The last year more tools have been added, such as diversifying your risk due to portfolio tools and certain guarantees through secondary markets, buy backs and some even have rescue funds in place.
From real estate, lending to consumers or businesses there are opportunities to make your money work again, and let you be more involved in the investments you make. With our more than ever connected nature this investment class with its cross border possibilities has all the lights on green.
Going forward in 2018
Now lets see how the regulatory framework will improve to paint a more clear picture and create industry standards and tax breaks.
We envision a future without banks, people being connected through finance, with no constraints or central authority.
The best thing is you are already part of this, just browsing around on Yieldport.