Despite what the critics want you to believe, cryptocurrency is not a scam. Here’s 5 reasons why.
Bitcoin traded as high as $20,089 in December 2017. Within a couple of months, it was trading below $3,000.
Bitcoin was just a fad, they said. The price collapse is proof.
But is that true? Or did it get caught up in a spectacular short-term bubble?
Don’t rely on others to think for you on this one, read the article below and form your own opinion.
1. Cryptocurrency is Just a Currency
All currencies, including the U.S. dollar, are illusions.
Not a single currency in the world is backed by gold or anything physical.
Currencies are based on their exchange values with other currencies. Those exchange values are dependent on economic and financial circumstances in each country.
Cryptocurrency is simply an alternative to these national currencies. There are thousands of cryptocurrencies and they are only ever worth what they trade for, no different than the dollar, euro, yen, peso, etc.
When someone judges something or someone, it is oftentimes because they feel threatened. Is it possible the jokes being made about cryptocurrency are rooted in fear?
Humans are scared of change. America has been the leader of the world for some time now, and our currency dominates all currency exchanges. If cryptocurrency were ever to supplant the dollar – what would that say about America’s place in the world?
Given the digital world we live in today, it’s silly to assume money will be the same forever. Cryptocurrency is just another currency, but one that makes more sense in the global and interconnected direction we are going.
2. Cryptocurrency is Decentralized
Cryptocurrencies are unlike national currencies because they are neither issued by financial institutions nor regulated by national governments.
For example, in Venezuela the government is actively destroying the value of its national currency. Imagine watching your life savings be drained from your bank account overnight. It’s no wonder that folks in Venezuela are turning to cryptocurrency as a way to salvage the wreckage.
If you’re in the US, you might say, yeah, but that would never happen here. You’ve officially been warned, then: The government, year after year after year, is destroying the value of the US dollar. Believe the official inflation numbers all you want….but life just seems more expensive these days, doesn’t it?
A currency outside of government control is an excellent idea. There was a time when people traded sticks for corn despite their nationality and somehow they got along just fine.
3. Cryptocurrency is a Great Hedge
The market is always going up and down. Lately, it’s gone up way more than it’s gone down.
But soon it will come down again. And when that happens, people will look for safe havens, assets where their money will either maintain its value or increase against the local currency.
Since most of the world’s assets and currencies are tied to the U.S. dollar, a major decline in the dollar would leave few alternative investments.
Americans hoard gold, silver and other precious metals in their portfolios as a hedge in case the market goes south. These same folks look at cryptocurrency as a scam. Huh?
Not only will the value of crypto increase when the value of the stock market decreases (therefore a hedge), but at least with crypto you can buy stuff – not something you can do with a block of gold!
4. Cryptocurrency is Cheaper and Faster
I recently loaned money to a friend of mine in London. The process was so, so painful. It took almost a week to complete the transaction and cost me $45 in wire fees (she had to pay a fee as well).
How does this make sense? I can text her and she will receive my message the second I hit send. The numbers in my bank account and in her bank account are just like the words in iMessage – images on a screen.
The reason my wire took a week and required paperwork and a $45 fee is because the financial services industry said so.
Cryptocurrency cuts out the middle man. The money being exchanged between my friend and me is OUR BUSINESS. We aren’t advancing digitally because the powers that be don’t want us to.
When you transfer ETH or XRP to someone from a crypto wallet, it hits their wallet instantaneously and for a fraction of the cost. Take that, Wells Fargo.
5. Cryptocurrency for the “Unbankables”
Let’s say you want to start a business but have a low credit score, spotty history, or a complicated financial situation — good luck working with a commercial bank! Banks will punish you for your past.
And this is in America.
Imagine what it’s like in 3rd world countries. Women in Afghanistan are using cryptocurrency to run their businesses because there the banks don’t believe women should engage in business.
So whether you’re an American trying to get on your feet, or living in another country facing extreme discrimination, cryptocurrency levels the playing fields. Anyone can use it, it is decentralized and welcome to all.
PS. If you’re already in business, one perk to cryptocurrency is how much cheaper transaction costs are. Multinational corporations cut sweet deals behind closed doors with credit card companies and banks that you have no way of securing for yourself. But with crypto, the average transaction fee is just .30 and can be adjusted between the buyer and the seller. IMAGINE THAT.
Crypto’s Not Going Anywhere
If you pass judgement or feel a certain way towards cryptocurrency, I recommend digging into why. Are you the type that’s scared of change? If you think it’s silly, then can you explain why? Is the US dollar silly? Were you told crypto was silly and adapted someone else’s opinion…?
All technologies start from humble beginnings and it’s no different with crypto.
The financial services industry of course is threatened by cryptocurrency, so is the government. They will gladly prevent society from evolving and fulfilling our potential technologically, if it means staying in control and keeping revenues high.
That said, entrepreneurs are amazingly still supported and admired so it’s just a matter of time before we all have a reason to adapt cryptocurrency on a mass level as the primary method of money transfer.