Opinion: Why Crypto?
By Josh Mulatz
In short, it’s the logical next evolution in a digital world where we are already using financial transactions that are conducted on the web.
In the last five years, investors have shown an increased excitement that allows them to work within their own convenience. Traditional securities markets are open Monday to Friday 9 am to 4 pm whereas the crypto market is open 24 hours a day, 7 days a week, 365 days a year. Also, including the massive abundance of different crypto options and projects, investors can rest assured about finding something that piques their interest.
Secondly, if you have already been reading through articles related to online payments, you most likely will have heard of the concept of “cryptocurrency.” To help your understanding, cryptocurrency is an all-encompassing term used to describe thousands of virtual currencies that are protected with cryptography. I think that one of, if not the most amazing thing to note about cryptocurrency is, it cannot be overspent or counterfeited. Because the digital currency is decentralized, every transaction is stored in blocks of computers known as the blockchain. This technology can (but doesn’t always) provide the privilege of anonymity, so people can use it or transact with it when they are concerned about interference by a third party or government. For example, currently, in Venezuela, people are using cryptocurrencies to circumvent the bolívar due to the national currency’s high volatility and rising cost due to hyperinflation (80,000% in 2018). As another example, in Brazil people are earning moons* on Reddit by participating in crypto-related discussions. In many cases, the value earned in moons* far exceeds the monthly salary of low-income workers. With the global popularity of virtual currency, the concept of investing in cryptocurrency has exponentially increased. As we can see in the above examples, as well as the additional ones listed below, it’s no wonder most experts agree that cryptocurrency is here to stay.
*Moons are Reddit’s own built-in cryptocurrency – To earn Moons you must have the Reddit mobile app. It includes a wallet and step-by-step instructions to activate it. Then join the CryptoCurrency subreddit and for each upvote, you receive you will earn some moons.
The returns can be amazing
Although they have been around for only about 10 years, cryptocurrencies have proven their strength to savvy investors. This is because investing in them can be one of the easiest ways to earn profit in a short period of time. As compared to stocks or ETFs that will only rise 1%-4% in some years (hardly beating inflation), the investment you make in cryptocurrency can easily magnify past 100%.
High Volatility
All Cryptocurrencies are highly volatile. Although this might sound negative to most investors, with the proper research mind-blowing profit can be made. I found myself dropping $20 USD in an altcoin one weekend, only to wake up on Monday seeing that $20 now worth just over $260 USD. In my case, I took my gains and reinvested into a more mainstream coin. These results are not typical but they do happen. Keep in mind that having a strategy is paramount in the world of trading. Even if you have a lot of money to invest, not having a smart strategy could wind up costing. In the world of cryptocurrencies, prices can change within the blink of an eye.
No Government Interference
In my opinion, the most amazing benefit of investing in cryptocurrencies is, they are not controlled by any government. This is why more people have decided to invest in cryptocurrencies. Secondly, the reason people are swooning over-investing in cryptocurrencies is because they allow everyone to enjoy a platform without any discrimination. Once you become a part of the crypto world, your identity remains discreet, and you can do everything anonymously. Furthermore, transferring funds overseas is easier than ever because it can happen as fast as the blink of an eye.
Cryptocurrencies are also highly liquid. In simple words, it is easy to sell and purchase cryptocurrency whenever and wherever you want, all you need is an internet connection. This is why, in my opinion, cryptocurrency is here to stay. For many people, it could become the future of investment.
*PLEASE REMEMBER, WHEN INVESTING IN ANY MARKET, DO SO WITHIN YOUR FINANCIAL ABILITIES, AND ALWAYS USE CAUTION.
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