Why Invest in Cryptocurrency?

For the past two years, cryptocurrency has instantly become a term gaining massive attention and interest from the public. One of the most popular terms associated with cryptocurrency is Bitcoin. Aside from Bitcoin, there are other cryptocurrencies today such as Litecoin, Ripple, MintChip, Ethereum, Dash, Dogecoin, and Peercoin.

Cryptocurrency is now known as a very popular digital currency that is developed and managed by the use of an advanced encryption technique called cryptography. It has made its leap from an academic concept to reality (virtual) in 2009. While Bitcoin has been constantly growing over the years, it has captured significant media and investors’ attention in 2013.

       Why Should You Invest in Cryptocurrency?

Nowadays, the world continues to become more economically safe. But this does not mean that there is no growth. Our economic machine today is very similar to a glass jaw. Just a simple punch and it may all come crashing down. Both the short and long term is neither good. But despite this fact, cryptocurrency has a lot of advantages. Here are the reasons why you should invest in cryptocurrency:

• Fraud – Cryptocurrencies are all digital. They cannot be reversed or counterfeited arbitrarily by senders as with the credit card charge-backs.
• Identity Theft – Giving your credit card to a certain merchant is letting them have access to your entire credit line even when your transaction is only for small amounts. A credit card operates on a “pull” basis wherein the store will initiate the payments and pull the designated amount from your credit account. Cryptocurrency is using a “push” mechanism that lets the holder send what they exactly want to the merchant or receiver without further information.
• Immediate Settlement – Buying a real property usually involves third parties, payment of fees, and delays. In several ways, the cryptocurrency blockchain is just like a huge property rights database.
• Access to Everyone – There are about 2.2 billion people who have access to the Internet and smartphones but do not have access to old exchange systems. These people are primed in the cryptocurrency market.
• Lower Fees – There are actually no transaction fees for the exchanges in cryptocurrency because miners are duly compensated by networks. Even if there is no cryptocurrency fee, many are expecting that users will use third-party services.

Should You Invest in Cryptocurrency?

If you are interested in the idea of investing in cryptocurrency, it would be best for you to treat this “investment” in a similar way to how you would likely treat other speculative ventures. In simpler words, you should recognize the risk of losing a big portion of your investment. From what you have learned, cryptocurrency does not have any intrinsic value aside from what buyers are willing to pay for their investment at some point.

Bitcoin and other cryptocurrencies are decentralized currencies that use a peer-to-peer technology that allows all functions like transaction processing, currency issuance, and verification to be carried out by a network collectively. While decentralization renders cryptocurrency free from the manipulation of the government, the downside is that no central authority ensures that things run properly or support the value it.

Posted on July 4, 2017 by yaki