For those who only know of keeping money in their bank accounts, crypto is a digital currency that has no tangible form. You can send or receive crypto-currency anywhere in the world through the internet, just as easily as you can bet online from a click away at sites such as https://betfirstcasino.be/en/. Among thousands of cryptocurrencies, Bitcoin, Etherium, Ribble, and Litecoin are some of the most popular examples.
In 2009, Bitcoin was released for $0 and reached its all time high at $64,800 in 2021. The people who invested in Bitcoin before 2015 are millionaires today. Cryptocurrency ensures tighter security than banks, provides a convenient platform for transactions and no taxes are imposed, resulting in an increasing popularity.
1. Increased investment opportunities
Binance and Coinbase are among the most popular exchanges through which you can invest in crypto-currency. Retaining the highest market cap, Bitcoin, Ethereum and Tether are the top 3 crypto-currencies at the moment.
Although investing in crypto comes with a risk of loss, the potential of profit is high once you learn how to keep an eye out on market trends. Having a higher freedom over your transactions gives you the opportunity to protect yourself from any heavy losses. Keeping all this in mind, crypto has provided endless investment opportunities in the world of finance, in a very user-friendly way, allowing everyone with access to the internet a way to cash in on the benefits of crypto unlike the tediousness of following bank policies for investment opportunities.
2. Ensures Security
Unlike traditional banks, crypto is safe from robberies. It cannot be hacked due to the cryptography it uses to secure its transactions. The online currency is simply encrypted to verify the transactions which makes it difficult for anyone to find loopholes in this complicated web of coding. Moreover, anonymous IDs are used to represent the transactions and one can not possibly find out the owner. It is almost impossible to breach into the security protocols of crypto, allowing users to want to turn to crypto over traditional banks.
3. No taxes or fees
There are no fees or taxes involved during crypto transactions. Each and every transaction on crypto is safe from any income taxes as well as it is nearly impossible to trace the owner in these anonymous transactions. This has been a major reason for crypto’s popularity in the world of finance, but also has been a reason for doubt amongst policy makers of various countries. As more and more countries adopt crypto policies, however, others have to rush to find ways to incorporate it in their economy as well. With an overall benefit of much quicker and safer transactions, it is important for governments to consider crypto as an asset in this changing post pandemic economy.
4. Direct control over the assets
In traditional banks, all your assets are safe in bank accounts but you have to make sure that the bank is open for you to make a transaction. Crypto gives you enough freedom to always keep a check on your assets, allowing you more freedom over the transactions as well. Not just this, crypto has also changed the definition of what an asset might be. The introduction of NFTs (Non Fungible Tokens) allows things like sports cards and digital artwork to be sold for millions of dollars. Almost anyone can obtain NFTs and profit from them.
Shortcomings of Crypto
Unfortunately, if you invest in a fraudulent coin, you can’t find the person behind it. There is still a minute risk of cybersecurity breach that cannot be disregarded in case of online transactions. The volatility of the crypto market, especially after the pandemic, makes it very difficult to predict a certain outcome of any investment. Along with the benefits, these risks of cryptocurrency have to be taken into account as its reshaping of world finance is kept in view.
In conclusion, it isn’t difficult to see how crypto has been reshaping world finance at both an individual and government level. Not without some disadvantages, the advantages seem to currently be outweighing consumer outlook, resulting in more and more people adopting and using various cryptocurrencies and NFTs in their daily transactions, and crypto is gaining more popularity everyday.
