One topic I find most excited to study and talk about these days is Blockchain and cryptocurrency technology and investing. And from my observation, a large number of people share this sentiment.
In fact, cryptocurrency is the hottest new trend in the investing world today. And it is quickly gaining popularity among investors and people who are interested in innovative ways of saving and growing money.
However, the number of people in crypto, despite being unapologetically loud, is still in the minority. The majority of people on the sideline either don’t understand why it’s worth investing in or think it’s too complicated to get in.
If you are contemplating on whether to invest your money or talent into the Blockchain and cryptocurrency industry, the 7 facts I’ll discuss in this video could convince you to make that move.
Note that this video is not financial advice. It’s possible to make a lot of money investing in cryptocurrencies, but it’s also possible to lose a lot of money. Crypto is a risky investment, and it may not be right for everyone. Be sure to do your own due diligence and be willing to take responsibility for your action.
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- Big corporations are taking it seriously
Here are some announcements that made headline over the past 60 days.
Paypal acquired a crypto security firm ‘Curve’, launched the feature to allow users to hold crypto and to use their crypto to pay at millions of its online merchants globally.
Visa announced it will start using USDC, a stablecoin, to settle transaction with Visa over Ethereum.
Tesla bought $1.5 billion worth of Bitcoin.
Venmo allowed its 70 million users to buy, sell and hold crypto assets.
Goldman Sachs announced to soon begin offering a full spectrum of investments in Bitcoin and digital assets to its wealth management clients.
These announcements and implementations from big corporations clearly shows that the cryptocurrency market has grown beyond retail investing. There is a growing attention and interest in cryptocurrency across the globe. And big corporations are on track to accelerate and expand support for cryptocurrencies and digital assets.
More institutional acceptance of crypto like this increases awareness and trust among retail investors, and create more confidence for the general public to move into crypto.
This is one of the biggest indicators of a sustainable future and mass adoption of cryptocurrency. When the giant corporations are getting involved for the first time, we are more likely to be in it for the long haul.
- Celebrities are throwing in their support
Contrary to the narrative that cryptocurrency is a tool used by dark web criminals, tech nerds and people with malicious intent, the cool and the gang crowd is increasingly embracing the technology.
With mass adoption approaching, we are seeing not only tech people, but various celebrities across different sectors with global reach acquiring and supporting cryptocurrency.
Elon Musk, Jack Dorsey- Twitter founder, Snoop Dog, Floyd Mayweather, and Kanye West are some of the many celebrities that own and support cryptocurrency as investment vehicles. Due to the influence these celebrities possess, they are massively influencing their fans to become crypto enthusiasts and investors.
This is another important indicator for the mass adoption of cryptocurrency.
- Protect your money from inflation
The currency monetary system is design to increase the supply of money, which facilitates the decrease in the purchasing power of money. So no matter where you live and what government-issued currency you use, your money will continue to lose value over time.
The argument for cryptocurrencies like Bitcoin is that, like gold, it has a fixed supply. In other words, only 21 million coins can ever be created. And the amount of Bitcoin mined per block decreases by 50 percent every 4 years. This limited supply allows cryptocurrencies like Bitcoin to be inflation proof.
Although major cryptocurrencies like Bitcoin and Ethereum has and continues to experience high volatility through its lifetime, unlike traditional currency, they has proven to be appreciating assets over a stretched period of time.
The interesting part is that, if you are not willing to deal with the volatile nature of most crypto assets, you have the chose to investment with stable coins and earn higher interest rates.
Stable coins are crypto assets that are pegged to value outside cryptocurrency. The most common stable coins like USDT, BUSD and DAI are pegged to the US dollar. In other words, one USDT is equivalent to one dollar.
Investing in stable coin protects your money from the volatile crypto market, while also protecting you from the high inflation associated with weak currencies.
- There are different ways to earn high returns
Experts have tagged Cryptocurrency as the vehicle for the greatest wealth transfer of our lifetime. In other words, cryptocurrency is creating a new set of millionaires more than any other industry.
Cryptocurrency has been the fastest growing assets since the pandemic struck. What’s more interesting is that there are multiple ways to make good returns online.
Innovations such as decentralized finance – commonly known as DeFi –, and Non Fungible Tokens – commonly known as NFT – are opening up new ways to profit from the crypto market. You can make money from trading, buying and holding, providing liquidity, saving or creating and selling NFTs.
On the other hand, similar to the argument against inflation, most people living in developing countries do not have options in their best interest for saving money. Banks interest rates are ridiculous.
Crypto lending protocols allow anyone from any part of the world to save money in dollar pegged crypto assets and earn medium to high interest much better than what the local banks can offer.
However, note that investing is crypto is risky. So be sure to do your due diligence, only invest in legitimate projects and be ready to take responsibility for your actions.
- It’s easy to get started
When you are looking in from the outside, the entire process of investing in cryptocurrency would seem too complicated. Most crypto newbie think it’s difficult to get started investing in crypto. But getting into and investing into crypto is quite easy and straight forward if you start with the basics.
The difficult part is learning to control your emotions in other to make decisions that are in your best interest. In other words, you have to learn to control your greed for gain and your fear for lose. This is will be topic for another video.
As far as getting started is concerned, it is an easy step. All you need is a mobile phone, internet access and capital to invest. Download any of the popular cryptocurrency exchange app available to your country, register with required details and fund your account in minutes and start trading crypto right from your phone. Some of the most popular crypto trading apps are Binance, Coinbase for US users, Kraken and Kucoin.
- It’s becoming a payment currency
Tesla announced that will begin accepting Bitcoin to purchase Tesla. WeWork, the leading flexible space provider, announced that it will begin accepting payment in cryptocurrencies. The news magazine, TIME partnered with Crypto.com to start accepting cryptocurrency as a payment method for subscriptions. PayPal now allows its users to pay at millions of stores with cryptocurrency.
Cryptocurrency is quickly moving away from mere speculative assets people buy and sell to accepted means of payment. Businesses of different sizes are starting to embrace cryptocurrency as a means for payment of goods and services. Some companies have gone as far as paying salaries in crypto.
This is a big win towards the mass adoption of cryptocurrency and a positive indicator for the bright future of digital assets.
- We are still at the early stage
The best part of what makes cryptocurrency an interesting opportunity is that the technology is still in its innovation stage; and the adoption is still in its early stage. A report from Crypto.com estimated that there are about 106 million people using cryptocurrency around the world. That is only 1.5% of the world’s population.
What’s even more exciting is that despite being a relatively young technology, it is already disrupting industries and democratizing finance.
We can say with confidence that cryptocurrency is not going away anytime soon. The number of crypto users continues to increase across different age groups, geography and demography. But it is the early adopters that stand the chance of making a fortune as the rest of the population starts catching on.
So if you have been dismissing cryptocurrency as a concept for unserious people, I hope this video arouse your curiosity and spur you to do what’s best for you. The choice is yours.