A few years back mainstream media and professional financial investors thought it was a hype bubble. They predicted that, as cryptocurrency doesn’t have a real-life value or it is simply useless in the real world, it will go down in value quickly and continue losing value. But that time is now over. From the start of this decade, things started changing. With the spread and impact of the coronavirus, people started shifting online rather than going out and interacting with real-life objects. Cryptocurrencies are already and will be a huge asset for the future. Those people who are not adapting to the change are going to miss out.
- Wide adoption
- Decentralizing from governments.
1. Wide adoption.
- This may not be a valid point to some, but the widespread and mainstream adoption is continuously growing.
- Many company’s adoptions of the BTC (Bitcoin) and the ETH (Ethereum) also secure the future of the Crypto assets.
- Some of the heavy giants of the Silicon Valley tech world started buying crypto in huge chunks.
- In Feb Tesla Motors, one of the most valuable traded companies; in the United States, invested and bought 1.5 billion US dollars, worth of Bitcoin.
- Also, Hyper Car manufacturers like Bugatti decided to take Bitcoin as payment for buying their car.
- And maybe in the near future, Tesla will also start taking Bitcoin as payment.
- Also, the French fashion brand Louis Vuitton, which makes luxury clothing and high-quality fashion items, started taking payments in Bitcoin form.
- During late February, Square the online money transfer company took some of their capital and bought over 170 million dollars worth of cryptocurrency.
- Coinbase, the largest and leading cryptocurrency exchange, is going public with an estimated value of around 100 billion US dollars.
- With all these companies coming in it seems that this is just the tip of the iceberg.
- For instance, companies like Apple decide to invest their 10% of cash in Bitcoin; they would be buying about 19.6 billion US dollars of Bitcoin.
- That is almost 10X more than Tesla’s purchase. These are some of the names.
- There are thousands of companies who are planning to convert some of their cash worth into cryptocurrency throughout the world.
- Then you’ve got trillions of cash flowing in the corporate world.
- All this cash at some point shortly will end up in crypto.
2. Decentralizing from Governments
- Blockchain technology does not only give the growth and boost liquidity provider crypto and also somewhat security to this day but its main trait or purpose is to cut the centralization out.
- Meaning no single organization can control everything with it.
- In the words of Golem Network’s director and advisor of the board, Maria Paula Fernandez, Cryptocurrencies like BTC (Bitcoin) and ETH (Ethereum) investments are the most natural way to reduce the layer of trust in financial institutions and governments.
- And with the situations today this seems the right thing to do as they simply failed to protect individuals from traditional financial system fragility.
- This current situation of the world with the pandemic of the Covid 19 virus has already slowed our government-regulated economy for several years.
- And now with the war between Russia and Ukraine, and with the potential chance of a nuclear war, it is very risky to trust everything in the hands of the officials who failed to protect the general people.
- Converting the centralized and now vulnerable assets into blockchain-based assets is the best way to try this piece of the pie also and potentially secure the assets.
There are only a few points that differentiate quality cryptocurrencies like BTC and ETH from other assets as a safer approach. The slow increase in supply with time offers protection from government control. This makes this asset unique in every way liquidity provider definition.
The reliable long-term value in-store is another great reason to invest in cryptocurrency. Cryptocurrencies are capped with the help of algorithms and calculation and also have a limited supply which makes it impossible for government agencies to mess around with the value through inflation. In one word it is not possible to charge tax on assets without the support and cooperation of the holder.
The main point is even if you are uncomfortable with investing a lot of money you should at least have 1% of your portfolio in crypto.