In the last 2 years or so the awareness about the term ‘Cryptocurrencies’ has skyrocketed.
Actually why not when cryptoassets have been the single most profitable asset class so far in history.
This has been possible because money has never been created in a way it is now.
Cryptocurrencies including Bitcoin, Ethereum and others are possible now due to decentralized ledger technology called ‘Blockchain’
How to Invest in Bitcoin (The beginner’s Guide)
Before the advent of ‘Blockchain’, there was no alternative form of money that can be used digitally without being fiddled.
But now it is !!
Hence the fundamentals behind ‘Cryptocurrencies’ are strong and they are even going to become stronger as they face the test of time.
That’s why let’s looking at some of the stats that might persuade you to look into cryptos if you aren’t already.
1. Decentralized & Uncensorable
Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are uncensorable and this feature is inherent to them because of their architecture.
Their architecture is decentralized and distributed enough to make them uncensorable and are unlike the other currency systems we have worldwide.
To give you a perspective here is a stats from Bitcoin’s decentralized node map across the globe:
So you have more than 9000 nodes where you have got Bitcoin’s ledger stored so it is way beyond the single point of failure and impossible to censor with.
And mind you, this is only going to increase !!
2. A Fraction Of World Population Knows About It
Another fact is that many people around the world yet don’t know about cryptocurrencies and a large chunk who knows about them aren’t that confident in investing in it.
Forget about confidence now but the great opportunity lies in being first or early while investing in any asset.
And crypto is one of those assets where you can be really early.
If you don’t believe me read these stats:
- Just 8 percent of Americans are invested in cryptocurrencies, survey says.
- Only 56% of the 1,035 Americans surveyed knew that cryptocurrency is a digital decentralized currency
3. Monetary Sovereignty
Cryptocurrencies came into origin to combat the banking demon that we have created.
Satoshi Nakamoto, the genius who created Bitcoin understood the pitfalls of the traditional monetary system and thus created Bitcoin.
If you don’t believe me here is the message by Satoshi Nakamoto inside the first block of Bitcoin, which clearly shows that he understood the very fact that our so-called money in the bank is not our own.
And following Bitcoin’s footsteps many other cryptocurrencies like Ethereum, Litecoin, Monero etc sprang up.
4. Inflation Resistant
Ahhh, this one is my favorite one because one cannot inflate cryptocurrencies like Bitcoin or Litecoin perpetually.
Thus they are a safe investment in comparison to USD or EUR that you have stashed under your mattress.
I know some of you might argue that what about the wild volatility of BTC or ETH like cryptocurrencies which have now almost lost 90% of their value since December 2018.
Well, I agree with that point but in countries like Venezuela where inflation is more than 40000%, a dwindling Bitcoin has still made money for them because their currency fell faster than Bitcoin’s price.
Venezuela's annual inflation rate measured for this afternoon on August 19, 2018, is 61,463%, another all-time high. pic.twitter.com/4ObB6vQhqZ
— Prof. Steve Hanke (@steve_hanke) August 19, 2018
So in a way, this can happen in other emerging markets too.
And if you take a long-range view than in last 5 years almost all top cryptocurrencies have beaten inflation rates across the globe by a huge margin.
Thus making it an ideal choice for investors, for example, Bitcoin is still 500% up than last January 2017 which speaks volumes about its resilience.
And with a fixed supply of many currencies like BTC or LTC you cannot inflate them always like one does for fiat currencies.
5. Fast Remittance
There are no banking holidays in cryptocurrencies and they are up 24/7 and 365 days, unlike the banks that are on holidays often.
And unlike our broken traditional financial system where a certain sum of money can take up to days before arriving in your account, crypto looks a better alternative.
And that too so cheaply you are able to move money from one account to another, regardless of borders.
See this story of a boy in Uganda where he receives money from his family in the US to fund his bachelors in Uganda almost instantly.
And see this how banks charge you so much for just entering few digits in a computer:
$30: The amount that Bank of America charges customers for a domestic wire transfer: https://t.co/udUbhTva0h
25¢: The amount that Bank of America pays the Federal Reserve to do the wire transfer: https://t.co/yWx2tb2UYD
That's quite the markup.
— John Paul Koning (@jp_koning) September 16, 2018
6. Return On Investment
Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested.
And the ROI of crypto is way too much that you can expect from any other asset class.
If you don’t believe me see these numbers:
|Year||Price at the Start of Year||Price at the end of Year||Growth in %|
7. Uncorrelated Asset Class
Cryptocurrencies are quite uncorrelated to other asset classes that are traded worldwide such as stocks, bonds, hedge funds, and index funds.
This also a good reason to invest in cryptocurrencies where you can move from one class to another to maximize your gains.
To prove my point of correlation, see the below charts for Cryptocurrencies vs S&P500 vs Dow Jones Index over the last 5 years period (you will find no similarities between crypto and S&P500/Dow charts):
8. Anti-Banking Ideology
— CryptoQuotation ⚡️ (@cryptoquotation) September 14, 2018
If you are against banks or dislike their ideology than crypto should be your home.
Of course, I know that crypto markets are only minuscule in comparison to the current banking system and we are still using the legacy banking for many reasons.
But this should change if we are for crypto.
And as I shared before and pointed towards Satoshi’s message in the first Bitcoin’s blockchain speaks volumes about the derogatory financial practices carried out by the banks of today.
9. Highly Portable Investment
"Bitcoin is a hedge against the whole world falling apart” – @peterthiel
— Pomp 🌪 (@APompliano) August 14, 2018
Bitcoin and other cryptocurrency investments are highly portable and hence doesn’t requires any custody or special storages.
And if you are giving custody of your crypto to someone then I think you have not understood the whole point in the first place.
With BTC or LTC you can just walk across borders with a simple 12 words seed or mnemonic phrase in your head or on a piece of paper and there is nothing anyone can do about it.
And it goes without saying that many cryptocurrencies are not inflation resistant or decentralized enough to deliver the promises.
That’s why you need to stay at guard and read CoinSutra or alike publications for more transparent and authentic information about legit cryptocurrencies.
We have covered some of the crypto scams also on CoinSutra so that you can remain better informed while taking decisions.
So that’s all from my side and if you are looking to discuss more on cryptocurrencies, I will be more than happy to entertain your questions in the comments section below 🙂
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Harsh Agrawal is the Crypto exchanges and bots experts for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in fintech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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