I confess I am rather old-fashioned when it comes to finances. I still deal in cash a lot. Just as I was getting my head around chip and pin, I lost my bank card. My new one as a weird symbol on it that means I can wave it like a wand above a card reader and transactions are authorised. Magical! Of course, although I am firmly stuck in the 1980s in many ways, I am aware of more recent developments such as the rise of cryptocurrency. I decided to do a little research as my teenagers seemed to have very different opinions on whether investing in crypto is a good or bad thing.
Bitcoin was invented in 2008 just after the worldwide financial crisis that highlighted the troubles of traditional methods of investing.
The idea of crypto is that you can make secure and simple financial transactions between peers. In theory, it means you are not dealing with powerful beasts like banks or Paypal. People power is something I very much like the sound of but as in all financial matters, I caution you to seek advice and do your own detailed research.
Many think crypto is a fad but note that In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender I would suggest that crypto is here to stay.
It’s high time you looked into the advantages of this relatively new phenomena including earning interest on crypto so you make money as you try something new.
We have moved to the option of not relying on central points of control for trustworthy, reliable and accurate financial business. Reliability comes from the fact that as a person conducts a financial transaction, it is registered simultaneously on multiple servers. It is thought that it will be extremely challenging for malicious softwares or hackers to disrupt cryptocurrency because they are unable to control the entire system. We have certainly noticed in recent years how often banks and Paypal find themselves subject to hacking with scary consequences on our money if we store our money with them.
We have all fallen foul of bank charges. Martin Lewis and organisations like Citizens Advice have campaigned for more fairness in this area over the years. However, banks and companies like Paypal are ultimately out to make money out of our financial dealings. Crypto does have some fees but these are very low – you can check Crypto Wisdom to find out more.
Protection from inflation
Inflation occurs when central banks and governments print and distribute more money in the markets while the total product supply remains the same. In other words, your money buys less products and/or services year on year.
In the case of cryptocurrency, almost all virtual coins are distributed with standard circulation supplies meaning that they remain immune to inflation. Result!
Anytime and anywhere
Cryptocurrency is global making it so easy for a person to send money to someone overseas.
Traditional stock markets are only open 5 days per week.. Many are not open during nights, weekends or holidays. Crypto is your financial friend around the clock and is there for when you need to make a transaction. It is a very flexible financial friend.
How do you feel about cryptocurrency?