In the last decade, cryptocurrencies became the hottest topic. There are several reasons for that. The most prominent one was that they were completely independent of the other financial systems in the world. The other major reason was their worth had a significant increase at some point. Naturally, there are a plethora of them at the moment and their worth is different. The best-known one is Bitcoin, who at the same time has the highest worth. Even though their popularity reached a significant level, only 3% of the global population are trading them directly. This information can give you an idea of their potential.
Moreover, the public became aware that some of the countries are going to release their own digital currencies. For now, we only have cryptos that are operating at an independent and international level. One of the most important things to know about digital currencies is that their transactions are much faster than those we are used to. At the same time, people are organizing themselves in crypto communities, like thebitcoinstorm.com, in order to manage their cryptos better. With the current situation about the global coronavirus pandemic, the future of digital currencies looked uncertain. However, the end of the tunnel is near. Let us take a look at what are the main reasons to invest in cryptocurrencies in 2020.
A couple of years ago, a certain financial expert spoke about digital currencies being immune to inflation. We must admit that a lot of experts at that time thought about this statement as a joke. Ultimately, they’ve all been proven wrong. The amount of cryptos someone had before the inflation is going to remain the same, even when the inflation strikes at all other financial systems. The only thing that is going to be affected is the worth of cryptos themselves. However, over time, this worth can increase to reach the level it had before the inflation. Therefore, even when the times are hard, you shouldn’t despair, because they reach their value once again. This has been proven in the case of Bitcoin that halved its price several times and the worth was increased after that. Sometimes, the worth was even bigger than it was. We can see that something similar to this is happening right now. And the crypto in question is again, Bitcoin.
You are aware that there is a wide array of digital currencies you can invest in. Our recommendation is that you shouldn’t invest all your money into one of them. With the number of cryptos you invested your money in getting higher, the possibility of you earning increases. Even in cases where the majority of the investments fail, you are bound to find that one or two that can have a significant effect on your investment that you can even cover all of the money your originally invested in all of them. This is without a doubt. At the same time, this is definitely not something that will happen at once since different cryptos have different modus operandi and different variations to their prices. Our recommendation is that you should have a thorough research before you invest.
Bank transactions are known to be slow and rigid. At the same time, the bank will require a lot of personal information to start the transaction in the first place. On the other hand, financial transactions of digital currencies are much faster and they don’t require almost any information from the sender or receiver. The only thing that it requires is an address where you are sending the money. In some cases, the impact of the transaction is almost instant. The receiver will receive the money in a couple of seconds. There are two more things that make a case for digital currencies. The first one is that the fees taken from the transaction are pretty cheaper than the usual bank fees. Plus, these transactions are not reversible.
The question of security is the most important one when it comes to financial transactions. Protecting all of your personal data is an absolute must. Also, you will agree that stealing cryptos is much harder than stealing regular cash, or credit card scams for that matter. We are pretty sure that you heard a lot about wallets that were hacked and exchange of digital currencies. You should be aware that reality is much different and that you’ll be provided with the utmost security. We already talked about being anonymous while undergoing transactions. This is just one point where we can say that cryptos are safer than most of the types of financial transactions of today.
One of the most important things about cryptos themselves is their decentralization. Them being independent of all other financial institutions and systems in the world is the crucial element for their success. So, all of the things that would be required of a person from banks and other institutions are not required for trading with cryptos. The owner of cryptocurrencies can remain completely anonymous, even when he or she is trading. At the same time, there is no way for anyone else to get involved with the transactions you are about to make or you’ve already made. As we said, banks ask for a wide array of personal data from every client. With the cryptos, this is definitely not the case. Moreover, there is not any authority that could potentially influence the transactions someone is about to make.
After the introduction of the Bitcoin, the people of the financial world were uncertain about the whole idea behind digital currencies. All of the main financial organizations around the world were skeptical about the whole concept. Some of them even called it a scam. However, them being skeptical was the thing that led to the increased popularity of cryptos. Today, there are so many crypto owners that we can’t even begin to count, and it looks like that there are more of them to come in the future. With the official statement from countries like China and Russia, who are interested in making their own digital currencies, it is possible for this concept to even replace good old cash. Maybe even credit cards.