Have you tried your luck in mining or trading cryptocurrencies? If not, you must have thought about it in these crypto fever times. There’s hardly anyone who hasn’t or who at least don’t know one person from their closest circle who isn’t obsessed with it. Now might also be a good time to consider trying your luck, since the recent development on the market has shown a rise in value, especially bitcoin. The predictions from the beginning of the year came true, leaving the whole world wondering if the predictions for the next year come true as well.
The inventor of the most famous cryptocurrency, bitcoin, probably wasn’t even aware of how the situation on the market will develop. How its popularity will rise, keeping it on number one place of most famous currencies ever.
For those who haven’t been interested in the topic, a question of why the whole world is so obsessed with them may come to mind. The fever starts with this question, and in this article, we’ll discuss some of the reasons why this is the case.
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1. It’s still an unregulated area
Source: Corporate Compliance Insights
One of the key characteristics cryptocurrencies have, that makes them appealing to people is that they are not regulated by laws. No government policy, or bank, or any kind of system has managed to find a way to control them. They’re called currency, but they have nothing in common with the typical financial assets we are used to.
The reason they are still “free” from control is that they rely on protocol provided by a network of computers to a computer, based on the internet. Managing the transactions and issuing money is also done collectively by the network. So, none can say which one is the owner. It’s truer to say, they belong to everyone. The currency supply is regulated with a contract between the users, which again is beyond state regulatory institutions. The value, like on every market, is dependent on supply and demand. Since no one but the network controls the transactions, they are way quicker than the ones performed by banks and with less provision. There’s no institution acting as a mediator between the two parties involved in the transaction. This is called freedom.
2. Pandemic as a chance
Source: EurekAlert!
This pandemic caused by a coronavirus has brought many interesting happenings to the world. Many of them had a chance to experience it for the first time in life. Most of them are seen as negative, due to the consequences on the labor market and financial market, but there are people who have seen a chance in all this chaos. Financial experts have investigated the concept of grabbing a chance opened with this pandemic and came to a conclusion that cryptocurrencies and gold are the first two products private investors see the most chance in profiting from the pandemic caused economic chaos. However, the age difference has shown the young investors are more aware of the chance investing in crypto carries. Other factors have also shown the huge inflow of capital in the past few months, investment funds focused on digital assets have gained.
To conclude, the panic and financial uncertainty caused by the pandemic has greatly influenced the obsession with cryptocurrencies.
3. Managing became easier
Source: Cryptopolitan
Not so long ago, people invested a lot of time learning about how to manage their digital assets. The learning involved reading tons of material, attending seminars, following the movements on the market, deciding when is the right time to buy which currency. All of this was very time consuming, and one was never 100% sure the decision is made at the right time. As time went by, many automated apps and trading software were developed to simplify the process for those who did not have so much time to invest. To learn more about this software, click here.
By now, you simply enter those currencies you are interested to buy, set a price alert, and wait for notification. Many have advanced and can now be exchanged for the fiat ones, such as USD in a matter of seconds.
4. They are more and more applicable
Source: mydigitalshield.com
Slowly but surely, digital currencies are taking over the online payment world. Before, you could only use them for limited types of payment, while at the moment, more and more companies are accepting crypto as a means of online payment. The fact mentioned in the beginning had a huge impact on this. Today, you can buy anything from shoes, cars, plane tickets, and travel deals with crypto. Even PayPal took it on their list of currencies. So, there’s no doubt the future is entirely digital.
Even online gambling platforms have chosen to allow crypto deposits and crypto winning payments. When gambling online, you can win a bitcoin. No doubt, it is the celebrity among cryptocurrencies, and people are getting mad about it, because of the recent rise in value.
5. Anonymity and discretion
Source: investinblockchain
A very smart move from the makers of the crypto concept was to make the transactions entirely anonymous, yet completely transparent. How? Since the technology is based on public network data sharing (blockchain), each transaction performed with crypto is public. Everyone interested can see and witness it happened, and when. But what no one can see is who made the transaction, so the person performing it remain anonymous. The level of privacy provided, at the moment varies from one currency to another. Some offer more discretion, some less, it is on the owner or the buyer to determine which one will be the most suitable for which transactions. You can on multiple types of crypto in your portfolio.
Anonymity, discretion, and transparency are definitely appealing and one of the reasons people are going crazy over owning and trading with these currencies.
With things as they are now, economy-wise, the obsession with digital assets will only continue to grow. More and more people will choose them as the investment option, patiently waiting for the world to completely turn digital.
