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The age of cryptocurrencies has arrived. And with this comes the birth of a new era of financial technology.
Never before has there been a massive influx of people who have been so new and hyped up to this form of a financial asset that many traditionalists are left in awe and negative speculation.
Nonetheless, cryptos have arrived and are undoubtedly here to stay. Some say that it is just a fad. While others believe that this is a new asset class that is set to disrupt the financial world.
So, what are cryptocurrencies, and how can they revolutionize our world?
We are going to answer all of these questions as well as other things that relate to crypto’s influence in our society.
Decentralized nature
The first thing that comes to mind when it comes to crypto is that they are decentralized. What this means is that it does not need to have any governing body to facilitate the smooth processes surrounding this technology.
This isn’t the same thing that happens with traditional fiat money because banks are the ones that create them.
Banks are also the ones who send them out, circulate them to the public, and accept transactions including the deposit and withdrawal of money.
That isn’t the case with crypto, though, as these are facilitated by the Blockchain network, which is a collection of miners who are interconnected by a global system.
You also can’t bypass the system and trick it because each transaction is confirmed by the entire network. So, for example, if you are going to send money to another address, then the entire blockchain network should confirm it for the transaction to succeed.
No to inflation
Another nice thing about cryptocurrencies is that they don’t inflate. Well, at least most of them. This is different from fiat currencies such as the US dollar which has an unlimited
The US government can print as much money as they want. It might seem good, but this results in inflation where the value of the dollar decreases because the supply increases. It is the law of economics, or more specifically known as the law of supply and demand.
With crypto, though, or in this case Bitcoin, you get a finite amount of supply circulating in the market. The maximum supply of Bitcoin isn’t yet in circulation, though, but mining difficulty also increases through time.
This means that inflation can’t easily creep in. You can then compare that to the US dollar which has an infinite supply as the government can easily print millions if not billions of dollars whenever they want. You don’t have to worry about this when it comes to cryptos, though.
Low transaction fee
Another nice thing about cryptocurrencies is that sending them from one address to another is very cheap and affordable. You can spend around more than 5% to even 10% or more if you are going to send fiat money to another person.
This rate can even go higher if it’s an international transaction. With cryptocurrencies, though, you don’t have to spend high transaction fees because no bank or organization facilitates such transactions.
What you have to take note of, though, is the traffic. This is especially true if you are sending crypto using the Ethereum network blockchain. Ethereum is known for its high fees, but that’s if there is high traffic.
High volatility
The volatility of cryptocurrencies is an exciting part of this world. Although this poses risk to many people especially if you are still new, it is a big opportunity for you to make huge amounts of wealth.
You just need to time the market and know when to sell and make a profit. You should also practice due diligence when it comes to choosing coins you are buying because there are a lot of cryptocurrencies out there that are made by scammers.
Heard about rug pulls? This term is very common in the crypto world because developers program the coin for buying only. This means that people who buy the coin can’t sell them.
All the proceeds then go to the scammers or in this case, the coin developers, and they are the ones that sell this and convert it to fiat. Buy cryptocurrencies that have utility because they are the ones that can exponentially increase in value in the long run.
Instantaneous transactions
Sending fiat money takes a couple of hours, if not days or at worse, weeks, for this to push through. It’s a different story with crypto, though, because sending a certain amount of crypto from one address to another happens very fast.
Sometimes it just happens within a matter of seconds. A good example of this is the Ethereum, Cardano, and Solana blockchains which only take a few seconds for you to send money.
The Bitcoin network, which is the original blockchain, is a bit slower, though, as it can take 20 to 30 minutes, or even an hour to push through. Nonetheless, that is still way faster if you were to send money through the wire.
Instantaneous transactions are very important in business, such as in buying things. An example would be if you were to buy custom LED lights online for your next DIY venture.
You need to make sure that the buying process is fast. The same goes for crypto because the sending of coins happens very fast.
Conclusion
Cryptocurrencies can bring you huge wealth unexpectedly as long as you know the right market timing and that you choose your coins wisely. There’s no harm in trying out this new realm if you want to build up wealth.
But in doing so, you also need to take care of your health by getting enough sleep, eating a good meal, and always bring hand sanitizers wherever you go because remember, health is wealth.
Follow our tips here, take care of your health, and wealth will surely follow.
