Cryptocurrency has moved into the public eye. The first decentralized crypto made an appearance in 2009, and it has grown in popularity in recent years as individuals and businesses use it increasingly as currency.
There are several myths about cryptocurrency, which, perhaps, is to be expected given its mysterious beginnings. The developer of bitcoin, Satoshi Nakamoto, is believed to be using a pseudonym and may represent one or a group of people who have since vanished after “moving on to other things” with 1 million bitcoins in tow.
Despite its obscure start, though, cryptocurrency is gaining traction. Here are five reasons crypto is becoming more mainstream.
1. More People and Businesses Are Using Crypto
One myth is that people are only using crypto to make illegal purchases. This scenario can happen since the currency operates independently of a centralized bank or government and is processed instead through a private computer network.
However, most people use cryptocurrency for basic purchases such as clothing, food and stock-market investments. In fact, many major businesses are starting to adopt cryptocurrency as a method of payment. You can buy coffee, make travel arrangements and attend an NBA game with crypto. Some companies have leveraged the power of Inbound marketing to advertise crypto.
2. Cryptocurrency Is Easy To Use Internationally
People can purchase crypto using different government-issued currencies, such as the Japanese yen, the British pound and the U.S. dollar. This ability to acquire it worldwide makes it easy to convert one currency to another. Because there is no middle institution, the transaction fees are lower than traditional currency exchange methods, such as banks and money transfer services.
Cryptocurrency benefits international migrants who work in other countries and regularly send money home to family and friends. It is an affordable way to transfer money while working overseas.
3. Crypto Is Compatible With the Digital Age
As more business is conducted online without using physical currency, cryptocurrency may soon have a lot in common with traditional fiat currency. Cryptocurrency consists of encrypted algorithms and is very secure for this reason. Its basis is a concept that falls in line with the idea of securely exchanging money online.
In other words, people are using online transactions anyway to purchase goods and services; therefore, cryptocurrency is a secure way of doing so and is compatible with how people shop online.
4. Cryptocurrency Can Resist Inflation
Inflation, the process by which currencies lose their value over time, can cause prices to increase. When governments print more money, inflation can occur as people have access to more of it. Crypto resists inflation because its amount is known and limited. It also cannot be subject to a government’s interest rate adjustments.
Some people have chosen to invest in cryptocurrency to hedge inflation, especially as the traditional currency they put in savings accounts actually loses value.
5. Crypto Is Private and Secure
Part of the appeal of cryptocurrency is that entities can exchange it privately. Blockchain, the digital method that powers crypto, has a ledger based on mathematical puzzles that are difficult to solve. This fact makes cryptocurrency more secure than traditional online transactions, which can be easy for hackers to intercept and steal from companies and consumers. Cryptocurrencies use pseudonyms that are not tied to any single account, data or user that can be connected to a profile.
How To Avoid Scams
Scams are everywhere, including the world of cryptocurrency. A bank or government does not back up crypto, so it is not protected the way it would be if you put it in a traditional financial institution. It can be easy to make the wrong investment if you’re not careful.
Watch out for warning signs such as:
- Promises of very high returns
- Lack of whitepapers
- Heavy promotional offers
- Secret, unpublished codes
It appears that cryptocurrency is here to stay. As more people and businesses use it, crypto can become more widely accepted and possibly the money wave of the future.