Why Do You Need Crypto in Your Life?
Do you need to buy digital assets in 2020? Is the game still worth the catch?
Trends are created to redefine the way of getting profit from people and increase the money inflow — an obvious market observation. Perhaps, you’ve heard about the Bitcoin and altcoins countless times when the market skyrocketed back in 2017. Shortly after the hype went down, the crypto winter nearly killed the trading profession, sending the market down for a long time. But it just wasn’t the end. Cryptocurrencies may not be the most attractive field for investments, but the excitement around digital assets is going stronger than before.
From hype to transparency
No need to clarify what blockchain is since it has been done so many times already.
Cryptocurrencies grasped global interest mainly by the emergence of Bitcoin, a new kind of digital asset that brought anonymity, transparency, and possibility to get profit. FOMO factor is still going strong and crypto-assets catch the attention of mainstream users who are eager to get rich by following the “Buy&Hold” strategy or trading.
With more than 5.000 assets involved, it’s nearly a lottery to make the right bet when it comes to altcoins. The cryptocurrency market has an issue with constant and sharp fluctuations. For example, Bitcoin’s price had climbed from zero to $ 1,200 for almost four years only and collapsed to $ 160 by January 2015. Two years later, it jumped to the record-breaking $20,000, only to fall in price several times later. The current rate of the primary cryptocurrency is struggling to overcome the $10k milestone.
The future growth of the rate will be facilitated not only by the widespread legalization of cryptocurrencies. Institutional players step in slowly, but heavily in 2020, and the capital inflow will also result in an inevitable rise. Bitcoin has been rumored to reach other record-breaking levels, and most say it will be from $100k or $400k to a million of dollars per coin.
Reducing the digital divide
The DLT-based cryptocurrencies have several significant and evident advantages. First — no dependence on traditional assets. If the printing press will go crazy and print insane amounts of dollars, it is logical that it will depreciate. This situation is excluded from cryptocurrencies such as Bitcoin, as their number is known in advance and is limited in most cases.
Next, decentralization matters. There is no single center from which the system is managed, which means that it is challenging to disrupt the system at large, forcibly limiting the spread of currency — the network simply does not have a single owner.
Last but not least, the benefit of anonymity that is inherited in many cryptocurrencies. It is possible to track transactions and see how many Bitcoins have been transferred from one wallet to another, but it is not that easy to determine who is the owner of the wallet. Having a crypto account is simple as never before today: all you need is an app and access to the network only. The interfaces are being simplified over time, making a gateway to crypto more accessible — another sign of mainstream adoption coming. The emergence of stablecoins, pegged to fiat assets such as dollar or euro, made it possible to open a checking account from any spot on the planet, opening the doors to the financial world for developing countries.
Staying safe with digital assets
The reasons behind the purchase of cryptocurrencies may be different. Crypto can be used to trade, Hodl, transact and pay for goods and services in countries where it is legal. The transfer of funds is carried out faster, without intermediaries and high banking commissions. Digital assets are set on a slow path of becoming a universal commodity.
Another important reason to buy crypto surfaced right this year. The C19 pandemic indicated the weak spots of the traditional banking systems and cash-oriented society. It was time to realize the undoubtful benefits of cryptocurrencies — safe transactions, money that can’t be the host of such dangerous diseases as coronavirus. Stablecoins, being quite a niche product, became instantly more popular. Ultimately, among 200 of existing projects, only a few still pursue the race. Digital money and crypto are safer to use, and in circumstances of rising paranoia, it’s quite an advantage over fiat.
Will paper money disappear? No, but the crypto payments will become more popular, considering that the virus can be back, and the number of Bitcoin ATMs grows fast in the world. With more people looking to invest in digital assets, Bitcoin ATMs represent an easy and accessible way to purchase crypto. The latest Google Trends statistics reveal that since last year, its popularity increased more than twice.
The number of newly installed machines grew in 2020 due to data provided by Coinatmradar, it’s market dynamics as of January report showed that there were 6,377 operating devices around the world. This number has now increased to over 7.000 machines globally — nothing better to indicate that people do need crypto in their lives.
The choice is yours
Summing up the notes, we come to a simple conclusion. If you have funds, you are not afraid to lose, or you’re the one which unusually seeks profit — the time is right. The age when crypto was regarded as something that complicated only suitable for tech geek is now gone. Cryptocurrencies assets are going mainstream, and buying it suits you well even if you’re an average Joe. However, don’t miss the main point here — do realize your ultimate goal before jumping into volatile seas of digital assets: an attempt to earn money fast, win in long-term market play, or simply follow modern trends. Stablecoins also fit the picture if you seek to interact with crypto and avoid traditional risks of leading assets.