Why Invest in Cryptocurrency?
Have you decided to invest in Cryptocurrencies, yet? You may have read enough about them to know they aren’t going away any time soon. Investors have achieved fabulous growth over the last 24 months, despite market corrections.
It’s not whether but how and when you should invest. Above all, you know all this is about the future of money/next generation tokenised economy.
You shouldn’t worry that you’ve have missed the boat either. You haven’t. Where we are now with Cryptos is like 1994 was to the today’s internet. Compared to other asset classes, Cryptocurrencies are still small with massive growth to come. It is ideal for the early adopter investor.
Bank of England Governor, Mark Carney said:
“New technologies could transform wholesale payments, clearing and settlement. In particular, distributed ledger technology could yield significant gains in the accuracy, efficiency and security of such processes.”
Eric Schmidt, Executive Chairman of Google said:
“As people move into Bitcoin for payments and receipts they stop using US Dollars, Euros and Chinese Yuan which in the long-term devalues these currencies.” Assuming Mr Schmidt is correct, which side of the fence do you want to be on?
Act now, but be patient. The first Bitcoin billionaires Cameron Winklevoss and his twin brother Tyler are willing to be patient to achieve their investing goals. “I’m in this for the long-haul” he wrote in 2013 when they backed Bitcoin with an $11 million investment (worth over $1 billion in December 2017).
The total market capitalisation of all Cryptocurrencies in July 2013 was $800 million. Just 57 months later the top 100 Cryptocurrencies are at $372 billion! Up 465%. Cryptocurrency development is in the first mile of a marathon. Crypto Global Management are the UK’s first Cryptocurrency Portfolio Management Service.
What are the Advantages of Cryptocurrency:
Fraud: Individuals cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
Immediate Settlement: Purchasing property typically involves some third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurrency blockchain can help to smooth the transactions and make it quicker. Smart contracts can be designed and enforced to eliminate or add third party approvals, reference external facts, or be completed at a future date or time for a fraction of the expense and time required to complete traditional asset transfers.
Lower Fees: End goal from cryptocurrency is to reduce fees. Some of the largest permission blockchain can transfer tokens around the world at a fraction of the cost and time it takes today. A CHAPs payment is expensive and inefficient, an example of a real world transaction using crypto is that someone transfered $99 million dollars worth of tokens and it only cost them $0.40 in fees
Identity Theft: When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency uses a “push” mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information.
Access to Everyone: There are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to traditional banking system, these people are primed for the Cryptocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer, and microfinancing service recently announced a bitcoin device, with one in three Kenyans now owning a bitcoin wallet.
Decentralization: A global network of computers use blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration this makes possible are just beginning to be investigated.
Recognition at universal level: Since cryptocurrency is not bound by the exchange rates, interest rates, transactions charges or other charges of any country; therefore it can be used at an international level without experiencing any problems. This, in turn, saves lots of time as well as money on the part of any business which is otherwise spent in transferring money from one country to the other. Cryptocurrency operates at the universal level and hence makes transactions quite easy.
There is no other electronic cash system in which your account isn’t owned by someone else.
Take UK Retail bank, for example: if the company decides for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you.
It is then up to you to jump through whatever hoops are necessary to get it cleared, so that you can access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptocurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).
Overall, cryptocurrencies have a long way to go before they can replace credit cards and traditional currencies as a tool for global commerce. Fact is, many people are still unaware of cryptocurrency/Digital Currency.
The future appeal of cryptocurrencies lies in allowing you ultimate control over your money, with fast secure global transactions, and lower transaction fees when compared to all existing currencies.
When used properly and fully understood it would be the initiator of many emerging systems that will fundamentally change our global economic system. Blockchain/Distributed ledger technologies will change the way we do business in all aspects, we are at the cusp of something that will change the world as we know it just how the internet did.