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If you’ve been following markets at all recently, you’ll know that crypto is big news. It’s now a multi-trillion dollar asset class – and growing all the time.
For many people, though, it still seems like a bit of a mystery. And there are so many stories being written about it, it’s hard to separate fact from fiction.
In this article, we run through some of the reasons why you should jump on the crypto train and fundamentally change how you organize your finances.
Let’s take a look, shall we?
The High Returns
Opponents of the crypto movement like to say that crypto isn’t a productive asset and, therefore, doesn’t provide any stream of returns. But that’s not entirely true. Assets are worth what people are willing to pay for them. And the value of crypto is going up all the time.
It’s a little bit like housing. Because governments deliberately restrict the supply, people who own them experience annual house price growth which makes them feel wealthier. The supply of crypto is also limited, producing a similar effect.
The returns for early cryptocurrency investors has been nothing short of spectacular. Buying coins a few years ago might have cost a couple of hundred dollars. Now they’re selling for tens of thousands.
It’s Easy To Understand
Practically all aspects of the crypto market are surprisingly easy to understand.
If you’re on the consumer side, all you need to understand are the factors that determine the price of digital currencies – things like supply and demand. You don’t have to research any companies or try to figure out future cash flows. You just buy the currencies you want and then wait and see what happens.
On the mining side of the equation, things are also relatively simple. According to My Blockchain Life, the crypto world is worth around $200 billion. That’s essentially how much money miners have made by discovering new coins and selling them to the market. The returns have been tremendous.
You Get To Keep Your Money
With regular currencies and gold, there’s always a risk that somebody will come along and take it. What’s worse, it’s hard to verify that a specific piece of currency is actually yours. One dollar bill looks pretty much identical to another.
But that’s not how things work in the world of crypto. The coins in your wallet relate to your identity. So all the computers in the network agree that they’re yours and yours alone until you come to sell.
It’s Independent
Bitcoin is a great way to diversify your investment portfolio. The value of the currency doesn’t seem to correlate with other asset classes, like stocks or bonds. So, in that way, it protects the overall value of your investments over time.
Furthermore, governments can’t interfere with cryptocurrency networks, no matter what they do. Because they are private and cross international barriers, preventing people from doing business on them is almost impossible. And, furthermore, they can’t print money and devalue the coins already in circulation. The blockchain technology behind them doesn’t allow it.
