6 Reasons Why You Should Invest in Cryptocurrencies
The new technology that the cryptocurrencies have introduced to us i.e. Blockchain Technology is proving to be a boon for us, making people rich, converting paupers into millionaires. But is it all about money?
Well, cryptocurrency is a digital asset that is developed and designed to function as a medium of exchange just like real life money but online. As the world is becoming more economically insecure, many are beginning to and feel it important to invest their hard earned money into a platform that is both secure and growing.
This article will highlight the major 6 reasons as to why you should start investing in cryptocurrencies and they are mentioned below:
1. Huge Growth Potential
The fact that these cryptocurrencies intimidate most people is the very reason why you would want to be in it. Jumping on the bandwagon earlier than most would give you an edge both in terms of potential gains and experience. Once there’s an adequate mainstream coverage on cryptos, the masses will start pouring in, purely because the rates of returns are relatively astounding.
According to statistics, as of November 2017, the Bitcoin was trading at $11,321 with the investment at $3,773,758 approximately.
Ethereum and Ripple have ascended through the ranks of digital currencies at lightning speed since December 2017.
2. Ideological Empowerment
We, humans, are used to a central authority – in the form of a government, an institution or any authority – that set rules to dictate the way things should be done. The decentralization of cryptocurrencies democratizes traditional powers and empowers the masses. This means that no more shall you depend on financial institutions for transferring the money that comes with an exorbitant fee.
Anyone can take part in the network by contributing resources and earn coins. The capacity for any person to participate and power the entire system is the nature of decentralization.
Another reason that is responsible for attracting masses into this is the security feature provided by this technology. When you are investing in cryptocurrency, rather than trusting the bank with your details you are trusting in the math. This security means that it’s highly unlikely your account will ever be compromised. Yes, you heard that right!
With the blockchain, investors can be safe in the knowledge that there isn’t a chance of anyone outside of the miners getting involved in the transactions. The security is further emphasized by the fact that your coin funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency.
4. Transaction Fees
Cryptocurrency transactions involve lower fees than any other money transaction process. Usually, there are zero, or very low transaction fees for cryptocurrency exchanges because the miners are compensated by the network. The only fees that are incurred by the operators are with the third party who is involved in creating and maintaining their own wallets.
One can compare these to those charged by traditional banks or online payment processors such as PayPal, Stripe, etc.
Cash amounting to millions is risky to carry for several reasons. Cryptocurrency solves this issue, these currencies are easily and legally portable, which is why crypto investors prefer it to other currencies.
6. Speed of Transaction
Cryptocurrency transactions are built to be incredibly fast and globally available. With cryptocurrency, you can send money anywhere and it will arrive minutes later, as soon as the current network processes the payment.
Bitcoin transactions can take up to an hour as the network underlying Bitcoin processes 7 transactions per second. Ethereum takes 2 minutes approximately to process a transaction. While Ripple has emerged to be the first cryptocurrency processing transactions at a lightning speed of 1500 transactions per second.
All in all, the cryptocurrency world will continue to expand with more currencies, more miners, more investors and newer technologies. If you are considering investing in cryptocurrencies, it will be best to treat your “investment” in the same way you would treat any other highly speculative venture.