It’s time to admit crypto has already transformed the economy, and it will continue to do so. New companies are popping up each day that have been created on the back of blockchain technology, and each day these startup companies find new ways to reduce costs for their customers and make their products more efficient. The blockchain space is exploding, and it’s not just Bitcoin that’s booming. Even Ethereum, the 2nd largest cryptocurrency by market capitalization, has seen massive growth over the past year. Bitcoin’s price is spiking for one specific reason, which is making its way into the mainstream as more and more people learn about it.
Because of this, the mainstream is starting to learn about blockchain technology, which then leads to more mainstream adoption. The more people become familiar with blockchain technology, the better. In fact, a recent poll revealed that more than half of the Americans that are aware of cryptocurrencies want to buy one. This is a huge deal because it shows mainstream adoption is on the horizon. Here are the 8 benefits of investing in cryptocurrency:
- Transaction speed:
Bitcoin’s transaction speed is incredibly fast compared to other cryptocurrencies. It takes about 10 minutes for a Bitcoin transaction to confirm, which is even faster than the wait at your local bank in some cases. However, industries like the entertainment industry could greatly benefit from the increased speed of Ethereum and other altcoins like Ripple, especially when it comes to paying out royalties. With Ethereum and Ripple, you can make transactions in seconds because they have been designed with larger blocks than Bitcoin.
- Transaction costs:
It’s well-known that Bitcoin has high transaction costs. However, there are altcoins like Litecoin and Dash that are able to maintain a low fee while providing secure transactions. With blockchain technology, the fees will eventually be reduced with the rise of more competition in the space as more investors start pouring their money into cryptocurrencies. Fees are likely to decrease by 50% over the next two years alone because of this competition.
You can trade crypto just about anywhere, which is great for people that want to invest. This has led to a massive rise in the demand for cryptocurrency ATMs, which are now available in most major cities. Cryptocurrency ATMs are extremely easy to use because you can just insert your bank card and buy Bitcoin without even needing to create an account or have any prior knowledge of cryptocurrency. In fact, many banks have started to ban the use of credit cards at ATMs because they’re worried about fraud.
One of the biggest security concerns that investors have is the theft of their funds. However, with a cryptocurrency, the investor has absolute control over their funds because they are on a private ledger. The only time your money could get stolen would be if someone hacked into that “private” blockchain and stole your funds. All investors need to remember is to do their due diligence before investing in any cryptocurrency because there is obviously no insurance or FDIC for your money, so you need to be extremely careful.
With blockchain technology, you don’t have to give out any personal information to make a transaction. That’s because the blockchain is decentralized, and blockchains encrypt sensitive information. The only way someone can gather your personal information is if they hack into the ledger, which is virtually impossible with how secure most blockchains are today. Bitindex Prime is a cryptocurrency investment firm that provides you with security and stability.
It’s extremely easy to see where your money is going with Bitcoin and other cryptocurrencies. It’s public knowledge of how many Bitcoins you own, how much money has been invested into the cryptocurrency space, and other details such as the number of transactions that have taken place. This information can be used to help investors make more educated decisions on what markets to invest in and can also be used as a way to monitor the market overall.
While Bitcoin is the largest cryptocurrency in terms of market capitalization, there are thousands of other cryptocurrencies that have seen massive growth as a result of the blockchain revolution. Some of these cryptocurrencies have become so popular that they are now worth more than Bitcoin, and their market capitalizations are growing rapidly. For example, Ethereum has recently grown to be one of the 10 biggest digital currencies by market capitalization.
- Inflation protection:
It’s extremely unlikely that Bitcoin or any other cryptocurrency will experience hyperinflation, but that’s not to say they can’t get there if the market cap becomes too large. There are a few different ways that this could happen, but the most likely is if Bitcoin were to monopolize the market and all other cryptocurrencies would be priced at zero in an attempt to compete with it.
The Bottom Line:
The mainstream is learning about blockchain technology, and this leads to more mainstream adoption and will probably lead to a surge of cryptocurrencies like Ethereum, Ripple, Litecoin, and others. Most people that are investing in cryptocurrencies today are looking for ways to diversify their investments so they can create a multi-year investment plan. Therefore, the best way to do this is through cryptocurrency mining which is likely the safest way to go.