Here are the key reasons why cryptocurrency is in high demand.
Everyone starts racing to buy cryptocurrency which is something that has been a hot topic of discussion for the past few years. Why are people paying this much attention to the cryptocurrency of a sudden? Maybe, you might not know much about why cryptocurrency is so popular at the moment? Cryptocurrencies appeal to their supporters for a variety of reasons, why cryptocurrency has been stealing every headline?
WHAT IS CRYPTOCURRENCY?
A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.
WHY ARE CRYPTOCURRENCIES SO POPULAR ?
In simpler terms, cryptocurrency is a decentralized digital currency, a medium of exchange, which is not issued by any central bank or financial institution. They can be bought and sold via cryptocurrency exchanges, where price fluctuations are visible. The reason why cryptocurrency has boomed is because of its ease of transfer. To exchange cryptocurrency between two parties, there is no need for a third party or a middleman.
Cryptocurrency charges are comparatively low
One of the biggest reasons why cryptocurrency is popular around the world is that there are very few fees associated with using it. When you’re using various other types of online payment options, you’re often going to incur large fees. The very low fees that you have to deal with when using various cryptocurrencies will be a much better deal for you. It makes sense for many people to use cryptocurrencies to pay for items online and lots of people also find it to be safe.
CRYPTOCURRENCY Aren’t Associated with World Governments
Another good reason why people place faith in cryptocurrencies is that these currencies aren’t associated with world governments. Some supporters like the fact that cryptocurrency removes central banks from managing the money supply since over time these banks tend to reduce the value of money via inflation
This means that cryptocurrencies have the potential to remain stable even when there is turmoil in a specific country. Some investors see cryptocurrencies as a good way to protect their wealth and this is one reason why cryptocurrency has continued to rise over the years. The potential that cryptocurrencies could be safer than some official government currencies makes them more appealing.
Paypal & Cryptocurrencies
Paypal launches crypto buy/sell feature, further to allow crypto transactions.
In October 2020, the global digital payments company Paypal announced that it would be launching cryptocurrency buying and selling features on its platform.
The launch included four majorly traded currencies, namely Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Paypal has also announced plans of allowing transactions to be made using cryptocurrencies.
Paypal was one of the critics of cryptocurrency as a sustainable currency. Now it is one of the biggest names jumping on the bandwagon. Along with others and PayPal’s support, there has been more demand for the asset class, thus contributing to its price rise.
Apart from Paypal, the company also owns another popular payment platform Venmo which will expose another 40 million users to crypto payment. While these platforms are new to crypto, some other platforms are already making crypto. (bitcoin)
Is cryptocurrency profitable?
Investing in crypto assets is risky but also potentially extremely profitable. Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.
Easy Accessibility To Public
Cryptocurrency is a digital currency that can be used as both – a store of value and a mode of exchange. While it has just started to gain attention as a legit payment method, it has established itself as a new asset class over the past decade.
Even if the public is unwilling to use it for transactions, many want to convert their cash into crypto because they believe that its deflationary nature makes it a better store of value and a hedge against inflation.
Especially in India, after the RBI ban against cryptocurrency was lifted, its investors had a significant surge
Many platforms have launched and received funding in this space to make crypto investing accessible. One such platform is CoinSwitch Kuber(https://coinswitch.co/)- acquiring over two million users in just six months after it launched.
As cryptocurrency is becoming more accessible to the public, more retail investors want a share of the asset class and are willing to pay more.
“Bitcoin is a technological tour deforce”-Bill Gates
Security is Important!
Apart from the value, the other thing that attracts investors is its privacy feature. Cryptocurrencies are built on Blockchain Technology, which is touted for its security and privacy. The transactions made cannot be traced so easily as they involved navigating through a series of web transactions.
It’s Seen as the Future
Finally, you could say that cryptocurrencies are seen as the future of money by many individuals. People who adopt crypto trading and cryptocurrency now are also adopting major technological innovations such as blockchain. This allows you to be on the cutting edge and it makes sense for many to be ahead of the curve. Blockchain Technology is supposed to change the world in many ways and it’s going to make trading a much more transparent process.
If the rising prices in the crypto market have got you thinking that it is too late to invest in cryptocurrencies, understand that this is just the beginning.
With more countries seeking to regulate the market, cryptocurrencies will become mainstream.
“Bitcoin is cash with wings”-charlie shrem