7 Benefits of Investing In Cryptocurrencies
To describe how cryptocurrencies affect the world of investing, and how people respond to it, apathy, excitement, and ambivalence, stand out. These three words are a succinct summary of the general reaction to the rise and proliferation of cryptocurrencies. Initially, when cryptocurrencies hit the limelight with the launch of Bitcoin in 2009, most people just ignored it. They thought it was one of those rave technologies that would eventually die a natural death.
Then came the developmental phase of the technology where many other cryptocurrencies swarmed the market and new platforms developed. After this, prices started soaring and the investing public was excited with interesting forecasts coming forth. And finally, we’re at the phase where the prices have dipped and people are not so sure of the trend.
A flurry of reactions has greeted the subdued current Bitcoin value as it has flattened out for the past six weeks or more. However, regardless of public opinion, we are optimistic about cryptocurrencies. Below, we have put together 7 reasons why you should share our optimism and jump on the cryptocurrencies bandwagon.
1. A Cryptocurrency investment is equivalent to sitting on Gold
In 2010, 10,000 bitcoin were just enough to buy two boxes of Pizza. Pizza! In late 2017, the price of Bitcoin soared above $19,000, approaching the $20k mark. Today, the story is not so exciting; a bitcoin is roughly about $6,400. Not as high as $20k, but definitely worth more than a hundred Pizzas.
The point is this, cryptocurrencies have a tendency to rise in value and you stand to gain everything by investing in them. The market is pretty volatile and no one can predict the next event that will likely spike the price again and make you a millionaire. This is not restricted to Bitcoin alone, but to other cryptocurrencies as well.
While there may be a lot of negativity at the moment about cryptos, what we see here is a huge opportunity. Billionaire investor Warren Buffett is known to offer the investment advice that the best time to buy a stock is when it’s low and everyone is selling. That description totally applies to cryptocurrencies at the moment.
Crypto investors who are in the game for the quick gains are in panic mode and selling out really quick. This might be your chance to snap up their cryptocurrencies. The low Ethereum price like that of other crypto is actually huge bargains.
You have nothing to lose by cashing in now and just chilling for the upswing to occur again and you can reap the benefits. And even if the price doesn’t rise astronomically in the future as we have predicted, there are still six other benefits to check out. Read along and find out.
2. You own a piece of the future
Either you like them or not, cryptocurrencies are here to stay. This is not an arbitrary statement made in blind excitement. Rather it is an assertion backed by the observation of the sublime technology powering cryptocurrencies; Blockchain.
It’s understandable if you don’t exactly see how blockchain is the technology of the future. A lot of people don’t either. To help you see reason and share in our excitement, we’ll give a quick description of the idea behind the blockchain technology.
The blockchain is a decentralized technology that allows for the simultaneous initiation and confirmation of transaction across multiple computers known as nodes. This is a radical departure from the centralized architecture of traditional networks and internet systems.
The major take away is that blockchain provides an avenue for faster and more secure transactions than ever before. As technology gets better, it is being deployed for even more applications than just cryptocurrencies. It is definitely going to feature a lot in the future of technology.
Owning cryptocurrencies is a fast way to get in on the Blockchain game. Some security tokens offered during ICOs give you ownership of some part of blockchain based startups. You also have voting rights on some blockchain related decisions.
By owning cryptocurrencies, therefore, you will be well positioned to be relevant in the blockchain ecosystem. And since blockchain is the future, you have, in effect but a piece of the future.
3. You avoid paying fees to middlemen
If you’ve ever taken a step back to take account of all the money you’re paying as transaction costs over the internet, you’ll probably be enraged. Banks take their cut off your card transactions and merchant sites stick their fingers in to get a piece of the pie too. You sometimes have to part with as much as a tenth of the actual amount you’re paying for your transaction.
Now imagine a world where you only pay how much the service or products you’re ordering costs. Well, that’s the world of cryptocurrencies and bitcoin. That’s the world we are excited about, and we’re sure you’re beginning to see reason with us.
With cryptocurrencies, you don’t have to start getting worried about having to factor in extraneous costs. Through mining and the proof of work or proof of stake system, your ‘transaction costs’ have been intrinsically covered. You can, therefore, buy stuff, pay for services or even transfer money seamlessly and at no cost.
4. You’re contributing to the advancement of technology
As efficient and useful as cryptocurrencies and the blockchain technology are, there’s a slight problem with them. The problem is that crypto can only have relevance as far as they are put to use.
No matter how secure the blockchain system is if I wish to do business with you but you don’t accept crypto, it’s impossible for us to trade in them. It takes two to tango, but in the case of cryptocurrencies, it takes perhaps the whole world to tango. The more people are connected to the blockchain ecosystem, the more effective cryptocurrencies can be.
For this reason, when you tap into the blockchain pool by purchasing cryptocurrencies, you are, in effect, adding one more person to the blockchain ecosystem and therefore helping to make it more effective.
The current banking system has a lot of drawbacks compared to the blockchain, but it works so well because everyone accepts money. Whether you use the American dollars, Japanese yen, or European Euros, every nation and everybody have access to money and this is what the current economic system thrives on.
Imagine the amount of progress that would be made if the cryptocurrencies with all their potential benefits were this popular. This is almost too good to imagine and would result in a utopian economic system. By investing in cryptocurrencies, you are helping to inch our economic system closer to this dream state.
5. Increased privacy and security of transactions
This right here is one of the biggest gains you stand to win with cryptocurrencies. Your transactions are as safe as they ever can be. You’re probably wondering how this is so. Well, here it goes:
The decentralized nature of the bitcoin technology ensures that information is not stored at a central location. There is, therefore, no weak point for hackers or data thieves to attack and harvest data from. An attacker would have to bring down the whole system which is almost impossible.
Also, most blockchains reconcile their transactions autonomously. This is a form of self-auditing ensures that no one can slip in any way to alter the information on the blockchain ledger. It’s okay if all of that sounds a little complicated, but the idea is that your transactions on the blockchain are secure.
The blockchain offers users some level of security and privacy that extends beyond the mere exchange of value. Since, encryption is used on the blockchain, with proper safeguards, third-party breaches are almost impossible.
6. Increased asset control
Your account balance and monthly bank account review may give you a false sense of ownership. But the truth is that your control over the money in your account is limited. By saving your money in a bank account under the traditional monetary system, you have, in effect, turned control, and perhaps partial ownership, over to the institution.
They are free to trade, invest, and do as they wish with your funds. And in the event of a bank failure, you may be jolted by the rude shock of realizing that some or even all of your money become inaccessible. Ask those who were hit in the great depression of 1929, or the more recent 2008 economic meltdown.
With cryptocurrencies, however, your funds stay under your complete control and possession, that too your crypto assets are completely secured. And you are free to do as you wish with it at short notice.
In the end, hyper-connectivity is the aim of most technological innovations. Bringing people together, and making transactions and interactions easier. With cryptocurrency, transferring funds either locally or internationally would be as easy as snapping your fingers. Investing in cryptocurrencies will practically hook you up with the rest of the world.
We dare to assert that cryptocurrencies might be the biggest innovation of the past two decades or even the century. The possibilities are limitless at present, and this is a window to a future ruled by cryptocurrencies.