Cryptocurrency trades and investments have tremendously increased following the inception of Bitcoin back in 2008. Merchants and retailers are no longer skeptical of cryptocurrency and there is simply no good reason for any doubts. Early investors of cryptocurrency like Bitcoin became millionaires overnight when the digital currency’s value exponentially increased. Although it will be difficult to replicate this feat, cryptocurrency investors are still making a decent profit from their trades. Digital currency also has quite a few risks compared to traditional forms of investments such as stock, bonds, gold and other precious metals. Below is a brief look at three key benefits of investing cryptocurrency.
a) Higher return on investment
When Bitcoin first came to market, it was priced at around $20. Today, 1 Bitcoin is valued at $7,887.17. That is an incredible return on investment considering it has only been a decade. In fact, the return was already high enough back in 2013. Cryptocurrency seems to be the future of monetary transactions and it is already being used by major retailers such as Amazon, Expedia and Overstock.com. As the value of other investments depreciates, that of cryptocurrency only seems to appreciate. Its acceptance also promises to stir another bloom in cryptocurrency value. You can review bitcoin vs gold investments to see just how much profiting cryptocurrency is compared to conventional investment options. Cryptocurrency simply continues to gain traction in the mainstream market and is set to become the ultimate mode of transaction in the near future. Its value is therefore expected to keep rising despite the weakening economy.
b) Does not get affected by inflation and weakening fiat
One main advantage of cryptocurrency is the mutual exclusive status. It uses a decentralized system and as such has no group of bankers, middlemen or financial institutions profiting by inflating values and regulating its availability in the market. Bitcoin (which is the most popular cryptocurrency) does not get affected by the weakening economy, inflation or falling dollar value. If you saved $100 dollars back in 2011, its value today would be around $89 which is a loss. If you invested your $100 in Bitcoin, you would be worth over $500,000 which is an unimaginable profit margin. When other investments have concerns such as loss of wealth, cryptocurrency investors gaze at the prospects of record-breaking profit margins.
c) Impossible to counterfeit
Cryptocurrencies are managed by a decentralized system owned by a large group of individual investors. In simple terms, there is no central bank or department tasked with managing crypto transactions, creation or trading. Rather, the entire network of computers owns the same ledger updated simultaneously. It is therefore impossible to counterfeit or fake cryptocurrency. If you manipulate your values, the change only occurs on your local computer and is immediately nullified upon comparison with all other computers in the decentralized network. Since all ledgers are updated simultaneously and in real time when the transaction is confirmed, there is no way you can forge or counterfeit a cryptocurrency. On the other hand, fiat, gold, diamond and silver all exist in various counterfeit forms.
Cryptocurrency investment is not a novel idea. Bitcoin and Ethereum currencies have been available for about a decade and are used in various online and offline transactions. You can find Bitcoin IRAs today, which are the equivalent of conventional retirement accounts, only more profitable. Nonetheless, it is important to carefully review the existing cryptocurrency investment options before making your choice. Understanding the inner workings of crypto investment will go a long way in helping you make informed decisions. With that said, cryptocurrency investments are safe, affordable and profitable. You can even create/mine Bitcoin and trade them for real money.