Cryptocurrencies are becoming an increasingly popular asset and means of payment. More stores and companies reach for payments in Cryptocurrency.
Despite the growing interest from the public, state authorities often fight against cryptocurrency and strive to regulate them. So what are the biggest advantages of cryptocurrencies attracting more and more enthusiasts?
CRYPTOCURRENCY ARE “ON TIME”
Many cryptocurrencies are appreciated because their specificity allows them to adapt to the current trends in the environment. It is not a traditional currency, but a digital asset that can be used in many different ways. Due to the fact that cryptocurrencies are decentralized, they have efficient way of the chance to adapt to other technologies. Digital currencies are the future, hence the great interest mainly among young people.
CONFIDENTIALITY AND SECURITY
While confidentiality is a fundamental advantage of cryptocurrencies, security should still be considered. Despite the fact that the technology on which cryptocurrencies are based aims at the highest possible level of transaction security, frauds also occur, i.e. scams.
Many people try to extort Cryptocurrency and seek to obtain them through fraud. These can be bogus ICO collections, which are not backed by any real project and are the most ordinary scam.
Confidentiality is ensured by the fact that the identity of the users participating in the transaction cannot be stolen. Everything is possible thanks to blockchain technology and its decentralization. It is not fully controlled by any government or authority, making the network much safer.
This, of course, has the other side of the coin, such as money laundering and the frequent use of cryptocurrencies by criminals as a means of payment. Nevertheless, the scale of this is much smaller than in the case of fiat currencies.
NO MIDDLEMAN IS INVOLVED
Which is, at least, desirable. Cryptocurrencies do not need any intermediaries to be able to complete a transaction. Thanks to this, we can avoid additional fees and difficulties in the transaction.
Moreover, it is also possible to eliminate many scams. The system can be not only safe, but most of all transparent and clear for the user.
ADVANTAGES OF CRYPTOCURRENCY
Here are some of the advantages of cryptocurrency are listed below.
- transaction speed
- Limited amount
- chance to get rich
Back in 2012, one Bitcoin cost just over two dollars. Some people bought it as a curiosity, some used it to exchange goods on the Internet, and others decided that it was an interesting investment idea. If someone did not spend their Bitcoin deliberately or forgot that they have it, 5 years later they could open champagne.
At the turn of 2017-2018, the cryptocurrency began to go crazy, reaching an amazing level of around $ 20,000 for one bit of a coin.
Imagine a regular shopper who keeps 50 Bitcoins in his digital wallet, costing him just over $ 100. It is not difficult to calculate that within a few months such a person became a millionaire.
Bitcoin rates are characterized by sharp drops and increases. His ratings are extremely volatile and maybe that’s why they tempt so many people. You can earn tens of thousands of dollars overnight, and lose 30% of the money earned a week later.
In March 2020, we will pay about $ 6,300 for one Bitcoin . Will it ever reach twenty thousand again? You never know.
SHOULD YOU BET ON BITCOIN?
Investing in bitcoin requires iron nerves, cryptocurrencies are highly speculative tools and their rates are subject to extreme fluctuations. You have to take into account the loss of trust by the stock exchange or state restrictions on trade. Therefore, it is best to invest only a small part of your savings in cryptocurrencies.
We need to be clear about the fact that bitcoins, unlike gold, have no intrinsic value because they only exist digitally as a reward for performing complex computing tasks. Cryptocurrency is an artificial product rather than an investment. For now, it looks like bitcoin will stay with us longer. But tomorrow it may be completely different.
It is better to buy bitcoin certificates or funds investing in multiple cryptocurrencies. Let’s be careful that the investment does not include the leverage and that the investment rate is settled 1: 1 (against dollars). The purchase is the same as with any other security and can be made through the investment offer of a traditional bank.