9 Reasons Why Cryptocurrency Can Make You a Fortune

Leave a Comment 257 views

Cryptocurrencies seem to be starting a new bull market and things are looking bright for the crypto space as a whole. However, we need to understand that cryptocurrencies were created over ten years ago in order to reduce the need for using intermediaries while handling our money.

Why was Cryptocurrency Created?

With Bitcoin (BTC), we do not need anymore to depend on a centralized authority or government to handle our funds. Everything is performed in a decentralized and safe way of using blockchain technology. Thus, Bitcoin requires no trust to work.

In this article, I will share with you why cryptocurrency can make you a fortune and why they are becoming more and more recognized over time.

Brand New Asset Class

Cryptocurrencies are considered to be a new asset class in the financial world. In the past, there were currencies, commodities, stocks and bonds, but never cryptocurrencies. Virtual currencies are yet expanding and becoming larger as time goes by.

It is certainly difficult today to consider digital assets like a stock or a commodity. They are becoming a different asset class that would definitely have an impact on the way portfolio managers handle their funds and on how users plan their future savings.

Nowadays, cryptocurrencies have their own market and companies are building all the infrastructure around them. With this in mind, we need to understand the way in which how cryptocurrency can change your life.

Limited Supply

Bitcoin (BTC), and a few other cryptocurrencies, have a limited supply. That means that they were programmed since the inception to have a total coin supply that would not be able to change in the future.

There are currently 21 million BTC in the world. This is going to make it impossible for every single person in the world to own 1 BTC. There is no way Bitcoin will ever increase its supply. And this is one of the reasons why cryptocurrency can make you wealthy.

It is worth pointing out that not all the cryptocurrencies have a limited supply. Ethereum, for example, has no limit to how much ETH can ever be created. This is different to how Bitcoin or Litecoin (LTC), among others, work.

As we will see in the next section, fiat money is also inflationary, and there is no limit to how much money governments can print over time.

Fiat Money Suffers From Inflation

Fiat currencies, as well as most of the cryptocurrencies, are inflationary. Bitcoin’s supply is growing at a rate of around 1.8% yearly. This is similar to the inflation of an advanced and healthy country. However, in the coming years, things are going to be different.

With the upcoming halving that is expected to take place in around 4 years, Bitcoin’s new issuance is going to fall again. That means that the inflation rate will be also lower: 0.84% per year. This is already lower than the majority of the countries in the world.

In some poor countries such as Venezuela and Argentina, the inflation rates have been very high for many years. The government has taken control over individual’s freedom to do what they please with their funds just because they have no currency. This cannot happen with Bitcoin, that has a limited supply and inflation that gets lower every four years.

Store of Value

Due to the aforementioned reasons, Bitcoin can certainly become a store of value. Gold, for example, has been used as a store of value for thousands of years. Although Bitcoin needs to yet show it can work as a store of value, it has all the conditions to eventually become used as such.

In countries with currency issues, the U.S. dollar or the Euro were used as a store of value, but in advanced economies, gold was the traditional commodity to use as SoV. This is one of the main reasons why cryptocurrencies can make you wealthy.

Bitcoin could eventually become digital gold and start offering individuals with the peace of mind that they can have their funds stored without risk of inflation or sudden devaluation. In order for that to happen, Bitcoin would definitely have to become less volatile over time.

Cryptocurrencies Cannot Be Confiscated

Cryptocurrencies, but specifically Bitcoin, cannot be confiscated. While governments today can easily have access to your bank account or simply take your goods and confiscate them, Bitcoin provides users with the possibility to avoid confiscation.

The way in which Bitcoin and other cryptocurrencies work shows it is impossible for third parties to have access to your funds. It is very important to be the owner of your private keys. If you do not have them, that means you will not be able to claim ownership on your funds.

Moreover, if you have and properly store your private keys, there is nobody that can steal your funds. This is why holding Bitcoin and other cryptocurrencies make you the real owner of your money.

At the same time, when you hold fiat currencies, every single year you will experience inflation rates that would slowly eat the funds you have stored (savings). In 10 years, over 20% of your hard-earned money and funds will evaporate.

Decentralization is the Future (Peer-to-peer payment networks)

Decentralization is also going to be very important to understand why cryptocurrency can make you a fortune. Bitcoin and other digital assets are changing the way in which we understand businesses and governments.

While everything is currently centralized among authorities, banks and other organizations, cryptocurrencies through the power of blockchain technology are decentralizing the economy. As they continue to expand, cryptocurrencies will also share the benefits of decentralization in a wide range of industries.

For example, users can simply understand where a product came from by simply checking the information on the blockchain. Users do not depend on a centralized authorities and firms do everything they are able to offer better solutions to users.

Bitcoin and Crypto’s Have Support from a Global Community

The cryptocurrency market is not limited to a region or a simple country. Nowadays, cryptocurrencies are operating in almost every country in the world. While some countries may have more restrictions than others, digital currencies are there and cannot be stopped.

Individuals from different countries are now holders of virtual currencies and their demand could reach higher levels than any other fiat currency has ever reached in the past. This is why being a Bitcoin holder would definitely be one of the reasons why cryptocurrency can change your life.

Crypto Make You Aware of the Value and Meaning of Money

As I mentioned in previous sections, being able to be the owner of your funds and money helps you understand how valuable is and how worthless government-backed currencies are.

Virtual currencies will definitely be a good way for people to be aware of the way in which governments work and how centralized authorities and financial institutions are always ready to make profits from devalued currencies. Bitcoin cannot be issued by politicians promising free money to every single individual on earth and it cannot be replaced. Thus, you will be the real owner of your fund and you will know how much they are really worth.

You Can Have Life-changing Profits

Finally, cryptocurrency can change your life because you can have massive profits if you invest in the correct moment. Here we can make reference to the theory “buy low and sell high.” However, this is not an easy task to do, specifically when we see FOMO growing as Bitcoin surpasses $13,000. Also, it's possible to buy Bitcoin anonymously which gives you full control over your digital finances.

If you were one of the first investors in Bitcoin or you were able to catch the growth of an altcoin that expanded 1,000% in a short period of time, cryptocurrencies could certainly provide you with massive profits that you would be able to enjoy in the coming years.

This article was also published on my blog called: Can Bitcoin make me rich?

How to make your first 10K online!

Leave a Comment