To invest or not in cryptocurrencies in 2022?

To invest or not in cryptocurrencies in 2022? 

New year, new resolutions. Should investing in cryptocurrencies be one? We discuss it with experts. 

Investing in cryptocurrencies is accessible to everyone, says Annie Lecompte, professor in the Department of Accounting Sciences at UQAM, specializing in cryptocurrencies.

“It’s so easy,” she sums up. It doesn't take great knowledge or a large portfolio to invest in well-known cryptos like Bitcoin or Ethereum.” 

Doing your homework< /strong> 

While this type of investment has become safer and more accessible, this is not a reason to pitch all your money in it  closed.  

No, it is not because we invest in cryptocurrencies that we suddenly become rich in a miraculous way.  

“Those who have made a lot of money in cryptos are those who invested in 2010 or 2012”, says the professor.  

According to her, it is therefore very important to be well informed and to know the product before launching. At least enough to be able to spot what's too good to be true.

“It’s not really regulated yet. You must have done your homework and protect yourself as an investor,” she warns.  

Several specialized sites, such as Coinbase, analyze new crypto projects and can serve as an indicator to know the reliability of a virtual currency.

Cryptocurrency accounting expert Mélissa Fortin first suggests that new investors use legitimate platforms supported by experts (Wealthsimple, Bitbuy, Coinsmart). 

“It's a bit like a bet. You can win, but you also have to be ready to lose all your investment, she points out. If you can afford it, go ahead and try! It will be an opportunity to familiarize yourself with this new technology which will probably revolutionize several industries.”

Towards a normalization 

Even if the markets are uncertain, an increase in the number of investors is to be expected in 2022, thinks Mélissa Fortin, also a professor in the Department of Accounting Sciences at UQAM.

If 2021 was a pivotal year for the purchase of cryptos, she believes that 2022 will mark the entry into a phase of institutionalization. As several countries are already beginning to recognize Bitcoin as a currency, more and more companies will accept cryptos, according to the expert.  

“Before, investment companies looked down on it. They weren't interested. Now they realize that they have no choice but to board, adds Annie Lecompte. And when the big players are interested in it, it gives a form of legitimacy that can encourage Mr. and Mrs. Everybody to invest.

Still very polluting 

So do we invest or not? The environmental impact of cryptocurrencies makes some people doubt.  

Indeed, one of the great disadvantages of this currency is that its production is very polluting. A crypto transaction requires running very powerful computers that consume a lot of energy and electricity. Much more than a normal transaction. Bitcoin consumed more than 134 TWh, or 134 billion kWh, in 2021. This is more than the annual consumption of many countries in the world.

Unfortunately, the experts interviewed by Métro do not believe that production will become more ecological in 2022.  

“The way the most polluting way of producing cryptocurrency is also the most accessible”, explains Annie Lecompte.  

“The greener alternatives have not yet proven themselves and cannot give the same level of security to investors than a transaction that uses the Bitcoin process,” adds Mélissa Fortin. 

To find out more about the tax impacts of investing in crypto, head to our Parlons Bacon section. < /p>

Previous Article
Next Article

Leave a Reply

Your email address will not be published. Required fields are marked *