Gone are the days when people rely on traditional assets for investment. Cryptocurrency has become extremely popular in the past few years and changed the outlook of the financial system.
Investors want to invest in cryptocurrency because of its multiple benefits such as incredible returns and enhanced safety. Bitcoin (BTC) has become the world’s largest cryptocurrency by market capitalization, thanks to its positive adoption and profitability.
The positive trends of cryptocurrency show that it is the future of money, and the financial world will solely rely on it. Cryptocurrency investment is rising each day and so is its popularity.
Let us find out what cryptocurrency is all about and why you should buy it for a better future.
What is Cryptocurrency?
Launched in 2009, many people around the world were unaware of the concept of cryptocurrency. It was largely considered a gamble with an uncertain future.
But cryptocurrency has withstood the test of time and come a long way. In addition to the leading Bitcoin, over 10,000 cryptocurrencies are available in the crypto market.
Cryptocurrency is also called digital or virtual currency and is supported by blockchain technology. It is protected by cryptography which consists of complex mathematical problems that are hard to break.
Cryptocurrencies are generally peer-to-peer payment method systems that exist online. You can make a crypto transaction at any time anywhere in the world, thanks to its 24/7 availability.
When you talk about cryptocurrencies, you should know that they are unregulated currencies and free from any influence of a third party like a bank or government. No one can interfere in your crypto wealth, and you are its sole owner and manager.
Carl Runefelt, alias, The Moon, is a global crypto leader who has invested in more than 350 crypto startups.
He says, “I think Bitcoin has done incredibly well in the past year. You can see just like a little bit more than a year ago Bitcoin was trading down at $3,000. Now, it’s more than ten times higher. So, I’m happy about those per that performance just compared to gold. Gold has nearly done nothing in that same period. So, I would already say that Bitcoin is performing much better than actually any asset out there while still taking a low risk.”
Why Cryptocurrency is the Future of Money?
Money is something that everyone needs in daily life to meet needs and wants. But what would you do if your hard-earned money is influenced or controlled by someone else?
Cryptocurrency offers freedom to its users, and it is not under influence of any authority. In addition, you can use cryptocurrency in multiple ways because of its versatile nature.
Here are some of the reasons explaining cryptocurrency is the future of money.
When you visit a market to buy goods, higher prices can dent your purchasing power. The existing financial system has so far failed to fight the challenge of inflation which has resulted in rising poverty worldwide.
But cryptocurrency is designed in other ways.
Cryptocurrencies have a hard cap on the total number of coins that can be traded. Each cryptocurrency has a limited supply that increases the purchasing power of its users.
For example, Bitcoin, the world’s largest cryptocurrency, has a limited supply because its protocols are designed in a way to ensure an inflation hedge.
So, when you see paper currency outpacing the growth of Bitcoin, the value of BTC ought to increase. There are numerous other cryptocurrencies that use the same mechanism and offer an inflation hedge.
Sending money to someone can be a challenging process because of the documentation involved. There are also some other challenges involved like bank delays, etc.
However, with cryptocurrency, you can make a crypto transaction quickly. Cryptocurrency is not regulated by any bank, or any other financial institution and it works completely on blockchain technology.
This facilitates the transactions of cryptocurrency and makes them quick. Furthermore, the fees for crypto transactions are fewer as compared to bank transactions.
Whether you are travelling somewhere or want to send money to someone far away, cryptocurrency is always there to facilitate its users. You do not have to be worried about managing your bank account or other assets when you are going abroad with cryptocurrency because everything is stored online.
As an investor, you would want to diversify your investment. But it is not a simple phenomenon because of the high cost.
On the other hand, a crypto owner can easily diversify a crypto portfolio. Instead of putting money in a single cryptocurrency, you can buy multiple cryptocurrencies at the same time.
Carl, on his YouTube channel, The Moon, says, “I would also say that, of course, you can diversify into other coins as well. Personally, I have bought a bunch of other coins that I hold in my portfolio, and I think some diversification is fine, but in the bear market and even in the bull market, I always think that you should have the vast majority of your crypto portfolio.”
You can diversify your crypto portfolio by investing in different cryptocurrencies. This would help you avoid losses when a market dip takes place.
On the other hand, the traditional financial system dominated by paper currency does not offer such freedom. Once you are stuck with it, you can find it extremely difficult to overcome its challenges.
Diversification in cryptocurrency is also significant to increase your wealth. With more than one cryptocurrency under your belt, you can increase your wealth comprehensively through trading.
One of the major reasons behind rising poverty across the globe is the lack of access to wealth. People try hard to make money but they cannot hold on to it because of higher costs and financial interventions.
Cryptocurrency is a product that can help people with easy access to money and hold on to it for a longer time. Anyone can use cryptocurrency, regardless of ethnicity or financial background.
You just need a computer and an online connection to start using cryptocurrency. The process is extremely fast and you just need to set up your profile and a crypto wallet to become a cryptocurrency user.
There are no ID checks or credit checks required, as there are in the current financial system. Cryptocurrency offers a way to access financial services without going through a centralized authority.
On the other hand, there might be multiple reasons a bank can cancel your account.
So, all such remarkable characteristics of cryptocurrency make it the best fit for financial services in future.
Investors are preferring cryptocurrency for investment and daily usage. Cryptocurrencies come with multiple benefits that everyone wants to enjoy and most importantly, the freedom from financial institutions.
Cryptocurrencies have demonstrated the capacity to transform the current financial system, which has been beset by numerous problems.
Anyone can want a revolutionary currency with a lot to give, which puts cryptocurrencies at the top.
After reading the above-mentioned information, you can realize that cryptocurrency is the future of money, and you should become part of it.