Crypto asset owners are often worried about scamming and hacking. The high value and price of digital assets make crimes such as fraud, hacking, increasingly prevalent in cyberspace. But crypto owners don't need to worry anymore because there is a hardware wallet called Ledger Nano to store crypto assets safely and can be taken anywhere. Now, not only are physical assets such as banknotes, gold, and other important assets valuable, digital assets like crypto are also valuable. To keep safe from online criminal activity, Ledger Nano emerged to be used as a safe crypto repository. Ledger Nano is a popular hardware wallet in the world today. With this hardware, users can buy and secure crypto using the Ledger Live mobile app. Ledger Nano S supports Bitcoin, Ethereum, Ripple, EOS, Stellar, and others. Users can install three applications at once according to their needs. Ledger Nano S can store crypto assets offline, only the owner can access them. The hardware wallet is eq...
Future value is the future value of an asset based on the assumed growth rate. The value of assets in the future is an important thing that must be considered by an investor or financial planner, especially when faced with several offers of choice of assets or investment products.
In addition to the asset safety factor, the consideration of asset growth and how much the asset is worth in the future is certainly a factor that determines decision-making.
Suppose an investor is faced with two choices of investment assets, will choose Gold or Bitcoin, then he must first know the history of the growth journey of Gold and Bitcoin itself, especially investors who are more focused on technical analysis, of course, guided that the price will move on the same pattern repeatedly.
Had it currently invested 100,000 USD in the capital, then referring to the price of gold and Bitcoin on October 26, as much as 1851 grams of gold would have been obtained, or 4.85 Bitcoin.
Well, investors or financial planners must calculate which of the two options is worth taking. Surely this is not as easy as calculating the future value for funds deposited in a bank assuming an easily predictable interest rate (since surely the size of the change in interest rates will not go too far).
Especially for commodities such as gold or cryptocurrencies, there will be a lot of analysis that must be used, both technically and fundamentally, but of course one of the two assets has a better future value than the other, which makes the asset worthy of being an investment asset.
What is the importance of knowing the future value?
The consideration of future value is an absolute thing that must be considered by an investor or financial planner.
With future values that can be taken into account, an investor or financial planner can make the right investment decisions based on needs with all the risks that can be anticipated in advance.
However, external economic factors, such as inflation, can have a devastating impact on the value of assets in the future, as the value of assets can become eroded, just like water which creates erosion of the soil.
Determining future assets can vary from one to another, and this can be a tricky thing to do especially for assets that have fluctuating growth.
Suppose that like the growth of gold or bitcoin in the example above, it is different from assessing the growth of money held in a bank with a predetermined interest rate whether it is compound or simple, or in other words a stable and volatile growth asset.
However, as previously explained, by giving value to an asset or investment in the future, an investor or financial planner, will certainly firmly choose which investment product or asset to take, and which asset or investment product should be removed.
What Are the Positive & Negative Effects of a Future Value Investment?
An investor or financial planner knows what he or has today, and they or can include some estimates or assumptions about what happens to what he has today in the future.
For example, by calculating the future value, there could be a delay for the purchase of an asset, and buying it when the price falls, so that purchase savings can be made. Suppose it is to hold back buying gold when the price is still above 1700 because it has the opportunity to fall below that price.
Future value is a matter of comparing two or more investment options, as in the example above, an investor can compare two or more assets that are on their investment list, and sort those assets or investments by future value, and the asset with the highest future value will certainly be the main choice (NOTE: by ignoring other variables).
Future values are easier to calculate using estimates and can be used by anyone in a hypothesis. Although it takes the technical history of price movements such as gold or bitcoin, that is only as long as the technology-based estimates, the reality is certainly what happens in the future.
Meanwhile, the contra future value is a matter of calculating. Different assets, of course, different calculations. Calculating assets with constant growth, for example, as depositing money, will certainly be easier to calculate futures values for fluctuating assets such as commodities or crypto.
Please be aware, that the future value is an estimate, and does not guarantee that it can happen. Just like Bitcoin, it used to be predicted by some experts that in 2025 its value will reach 1 million dollars, of course with the calculation of the future value they made, whether it happened or not, no one can be sure yet, limited to the estimated value.
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