Why Is Crypto The Best Investment?
While many invest in stocks or real estate, cryptocurrencies are often overlooked as an investment opportunity. Although digital coins offer many possibilities, only a few people consider investing. But why is that? What are the advantages over other investment opportunities? And why do so many people still shy away from it?
Bitcoin (BTC) appeared on the market in 2009, the best-known of all cryptocurrencies, making it the oldest digital currency. Bitcoin was the answer to the mistrust of banks and financial institutions. Cryptocurrencies are managed on a decentralized platform. Central offices, such as banks, are only responsible for payment transactions. The financial institutions are replaced by a decentralized network in which users can independently control transactions and generate new currency units.
One of the most significant differences to conventional fiat money is that only a certain number of bitcoins can be mined. According to Blocktrainer, almost 21 million. Digital money like Bitcoin cannot simply be reprinted like standard money. Behind BTC is the blockchain technology that makes this possible. One of the advantages of blockchain is security.
Since blockchains are decentralized, a complete network collapse can almost be ruled out. In addition, decentralization scores with transparency. Each transaction is stored on the blocks of the blockchain, which means that subsequent evaluation is always possible. In this way, actors can be identified, and the results of the transactions can be traced. This rules out manipulation and ensures data security.
The Development Of The Digital Currency
In 2017, blockchain technology gained notoriety as crypto surprised investors with high returns. Since then, more and more companies have started building platforms based on blockchain. This technology brings so many benefits and opportunities. For example, encrypted information can also be transmitted without the help of Google and Co.
Since the advent of Bitcoin, blockchain technology has evolved and paved the way for many new cryptocurrencies. Since then, Ethereum, Solana, and Co. have brought various advantages and focal points to the market. In 2011, for example, the currency Litecoin was created, which was supposed to fix the problems of BTC, such as low transaction speeds and high fees. Ethereum, on the other hand, serves the purpose of concluding contracts in addition to transactions. Brilliant contracts based on this cryptocurrency can exclude intermediaries such as notaries and guarantee 100% forgery-proof contracts.
With digital currencies such as Bitcoin or Ethereum, everything is possible that is also possible in the real world – and even faster and more securely.
The Current Status
Today, many companies are already using blockchain technology and crypto payment methods. In some REWE and Saturn branches, you will find Bitcoin machines where you can invest on-site. This shows how much digital currencies have already penetrated the real world. Many brands, such as Lieferando, Twitch, or UNICEF, also allow payment with Bitcoin. Some countries, including El Salvador, have adopted BTC as a second currency.
Crypto credit cards are also available from Visa and Mastercard, for example. The popular payment service provider Paypal has also jumped on the bandwagon and intends to launch its stablecoin on the market. In addition, Google and the crypto trading platform Coinbase have announced a collaboration that allows users to pay with crypto.
Many companies have already adopted Bitcoin and Co., And it’s not getting any less. In the future, more and more companies will jump on the fast train, and the payment method with crypto will become a habit.
So Why Is Crypto The Best Investment?
Cryptocurrencies have a more excellent range of possibilities than traditional fiat money. It’s much more than a fast and secure payment method. It can be invested in digital securities through STO (Security Token Offering). They also launched Non-Fungible Tokens (NFTs) – a new form of financing. Blockchain technology also gave rise to Metaverse and Web3, in which crypto plays a significant role. Games like Decentraland need digital currency to be able to invest in their property on this Metaverse platform.
The crypto sector is now inclusive and has enormous growth opportunities. Digitization will ensure that blockchain technology will continue to develop and more and more will be possible. This is also seen in a current example from Polygon, a blockchain scalability platform. Polygon fixes all the shortcomings of the widely used Ethereum blockchain to make transactions faster and cheaper.
One could even go so far as to say that crypto and blockchain are our future. While full payment with bitcoin is less enforceable due to its volatility, stablecoins and central bank money (CBDCs) can help. This would enable faster transactions and rule out high price fluctuations.
Too Little Knowledge And Too Many Possibilities
Because the crypto market, in contrast to the stock market, is relatively new, many people still need to be convinced to invest. Some need help to cope with the digitized possibilities, especially the older generation. Technology has grown faster than human knowledge. Scary news that platforms have been hacked, crypto has been stolen, or BTC has drastically dropped in value further unsettles people. But there are similar problems in other markets.
The fact that a mass adaptation has yet to take place is mainly because the necessary knowledge is lacking. To invest in crypto, you must deal with the market and read up on some knowledge. In addition, a flood of offers is a reason for uncertainties.
And user-friendliness also plays a role: more than half of the more than 350 existing crypto exchanges are complicated to use. Many people have neither the time nor the inclination to deal with it and cannot cope with the technical effort that accompanies creating an account. There need to be more user-friendly platforms and technical education.
However, there are many ways to help, such as the community, various clubs, and groups where people support and learn from each other. Her experiences can be exchanged, and others can be saved from their own mistakes. If you want to enter the world of crypto, getting someone on your side who knows the market well and has already gained a lot of experience is worth it.
Whenever new technologies emerge, new super companies emerge. And with the blockchain, giant tech companies have sprung up. Crypto and blockchain are, therefore, already indispensable. And in the future, in all likelihood, it will continue to prevail and develop. This is also why crypto is the best investment.
The future of Bitcoin and Co. is almost inevitable. Traditional investment opportunities like stocks are more volatile than stablecoins. The recent past has shown us that digital currencies can also lose value. Therefore, it is also essential here to only invest what you are willing to lose. What exactly can be expected in the future cannot be determined one hundred percent. But one thing is clear: the potential of crypto is enormous.