Should You Invest in Cryptocurrencies?
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With the introduction of the blockchain in 2008 and the resulting craze for Bitcoin, and other ‘cryptocurrencies’, it’s understandable that some people have compared Satoshi Nakamoto’s work to gold. The truth is that particular comparison sells cryptocurrency and especially Bitcoin. As of July 2018, one Bitcoin was worth approximately 7,702 U.S. dollars, while one Ethereum was 462 U.S. dollars.
Gold may still be the standard to which all currencies are valued, but in recent times Bitcoin has emerged as the newest competitor for that position. So, if you’re still unsure about whether to invest in Bitcoin or cryptocurrencies, here are some points to help you make up your mind.
Cryptocurrencies Are Universal
For most people, keeping track of money is pretty hard. Imagine the hassle of straightening bank accounts, keeping a record of expenditures, and managing multiple accounts. Now imagine if you had to keep track of bank accounts in different currencies. Sounds like a nightmare, right?
That is exactly what a lot of people who work in multinational companies have to face. A more relatable situation would be when you’re on vacation abroad, and you don’t know how much you have to pay for a small souvenir. In both cases, the problem is caused by a lack of universality in the currency. And in both cases, the solution is the same: to invest in cryptocurrency.
Consider this: a Canadian company called Bit gold, launched in 2014, can convert your crypto tokens and crypto coins into real physical gold. It’s actually a real and reliable business designed for senior citizens seeking retirement, who want a more steady payout than fiat currency. Should you need fiat money, gold can be sold virtually anywhere within a narrowly fluctuating exchange rate.
Even more common are A.T.M.s that accept your cryptocurrency and convert it into cash on demand. Popular across America and Europe and available in many other places as well, these machines help you carry your assets in a safer way. In places where these services aren’t available, the ample manpower that works with cryptocurrency can hand-deliver fiat currency to your doorstep. Such services are invaluable in sending remittances home.
So, an investment in cryptocurrency means that it’s never more than a few clicks away from being solid, tangible money. Even more surprising is that within the online world, there is very little need to convert cryptocurrencies from form to another. Companies like Amon have launched their own plastic card that accepts a large range of cryptocurrencies called ‘Amon card’. It’s not uncommon to buy crypto coins or tokens on one website and use them on another. The real world equivalent would be buying an Xbox with Sony shares, but that is just about how it works.
Cryptocurrency Is Secure
On October 29, 1929, America experienced the Wall Street Crash, one of the most devastating financial crises for Americans in history. Of course, there were several causes for this catastrophe, but one of the biggest was the unchecked growth of fraudulent businesses and corporations. Millions of people lost all their savings when they were scammed terribly. Today, we have safeguards against this from happening, but the damage was done. Moreover, no matter what we do, such a crash is not only impossible but quite likely, according to some. Read more on that here.
That’s one advantage of cryptocurrency: it is infinitely more secure than fiat currency. It’s hard to steal what you can’t see, touch, and even better, trace. Even when buying from vendors online, the blockchain allows only the most minimal of contact, so the transaction can be safely made and verified without either the buyer or seller having gleaned the slightest modicum of information about the identity of the other. I mean, how secure is that? Suffice to say, the blockchain makes bank security, with all its armed guards and armored vehicles, look puerile and silly.
Moreover, even credit cards, with all their verification protocol, can be stolen by thieves with special tools. The catch? The process can be done while the card is in your pocket, in as little as five seconds. Whereas your crypto coins and tokens, bought online with a credit card, would be protected by the blockchain and high levels of encryption. It would probably be more secure than Fort Knox, though that’s mere speculation.
Cryptocurrency Is Appreciating in Value
Since its breakout in 2008, cryptocurrency has steadily appreciated in value, despite its inception during the global recession, and a myriad of other factors that should have spelled its demise by now.
The truth is that cryptocurrency is here to stay, despite what the naysayers claim. It experiences rises in value, as we saw from 2008 to 2014, wherein its value appreciated greatly. During this era, we saw hundreds of videos of people who bought like a hundred dollars’ worth of bitcoins and forgot about them. Fast forward five to six years, and these people became millionaires.
At the same time, it experiences falls in value like we saw in early 2018, where the value fell by a few thousand dollars in the span of a month. While the layman would be put off by the fall in value, an educated investor understands that such falls in value mean that the growth of cryptocurrency is sustainable, and it’s not forming an economic bubble. Find out what that is here
Overall, if you observe the changes in the value of Bitcoin (which indirectly stands for the majority of cryptocurrencies as they are tied in one way or another to it), you will see an overall rise in price and worth. That makes investing in cryptocurrency one of the most reliable long-term decisions you could make in this day and age.
So What Should I Do?
Believe me, it’s tempting to do nothing at all. In this day where companies can collapse overnight, where governments last hours at times, where there is so much uncertainty in everything, all the time, why take a risk?
‘Because nothing ventured, nothing gained.’
The whole idea of the American dream and capitalism means taking calculated risks for a collective betterment. Yes, there is a lot of risks in making an investment in the blockchain, but when you look at it, there is a lot more in your other investments. A thousand things can go wrong when buying a car, when buying a house, or even a new phone. From the list above, can you pick out an example of an asset whose value has steadily risen over the last few years? Can you tell me a tale of someone who bought a phone ten years ago and used it to buy a yacht today? We do buy those things all the same.
So, if there is any doubt in your mind, even now, take a step back. Educate yourself about economics, investments, and the blockchain. Learn more and make a decision that suits you.
So, bring out any credit card, and buy bitcoin with a Visa card, or make an investment in Ethereum or Litecoin. Just make a choice today that you’ll celebrate tomorrow.