In the past couple of years, digital currencies have recorded remarkable growth. The growing popularity of the topic has led to widespread acclaim from blockchain enthusiasts, NFT collectors, and investors. With people investing hugely in Bitcoin and Ethereum, the cryptocurrencies continue to expand at a Faster speed. Apart from initial coin offerings (ICO), the industry now offers different types of blockchain products for investment.
Today, you can invest in non-fungible tokens or decentralized finance, other than traditional investment assets. But why are so many people willing to buy bitcoin, and is it feasible to do so?
- Bitcoin – A Transformational Technology
Bitcoin, Ethereum, and other cryptocurrencies are proved to be gamechanger for major industries from banking and insurance to shipping and logistics. The ever-rising demand for crypto is compelling investors (who believe in the future of the digital economy) to invest in digital currencies.
Investing in cryptocurrencies facilitates a way to earn higher profits and a passive income stream. Elimination of intermediaries from computer networks, new opportunities can be unlocked. That’s certainly one of the reasons why people are looking to invest in cryptocurrencies, even with the dynamic nature of the industry.
- Crypto is Censorship-Resistant Store
In the fast-paced digital era, investors are looking to invest in a reliable and enduring store of value. Cryptocurrencies are mapped by mathematical algorithms and have a limited supply. That’s why government agencies do not have the power or scope to dilute the value of these currencies through inflation.
In addition, the cryptographic nature of bitcoin or any other currency sometimes makes it difficult for tax agencies to tax tokens without the support of the owner. Since the impact of bank failures, economic turmoil, and hyperinflationary events on crypto is none, the number of investors is surging.
- Minimal Theft & Scam Instances
One of the unique aspects of bitcoin or Ethereum is that they are hard to steal. All you need to safeguard your cryptocurrency is a secure wallet. If online access is a concern, you can buy and transfer your crypto to a potential wallet that doesn’t demand you to connect to the internet every time you need to access your crypto account.
One potential threat is keys, as you would require remembering your crypto key to gain access to your crypto account. You can either select to save your key online or in a paper format. Learning about crypto wallets in detail can help you securely save your cryptocurrencies in different forms.
So, all these reasons together compel millennials to invest in bitcoin, Ethereum, and other digital cryptocurrencies. If you are looking to buy digital coins, it helps to be informed and to do your research on the subject before committing to a project or purchase. Looking up terms and frequently asked questions can help you get acquainted with the space and how digital cryptocurrencies affect and interact with each other. Spend some time learning crypto as well as researching and analyzing market trends, and you’ll be sure to succeed.
Opinions expressed by CEO Weekly contributors are their own.
