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How cryptocurrency investments stand out
Cryptocurrencies are the future; there is no doubt about that. The Bitcoin blockchain alone is worth billions in the present day. So, in the worst case, even if it’s a bubble, it’s the kind that is less prone to burst compared to some of the national economies that have already burst. The blockchain sector is growing at a tremendous pace and so is the worth of cryptocurrencies. But what makes cryptocurrencies beneficial from a general perspective? Let’s see.
No Centralised Authority
Since blockchains are mostly decentralised entities, there are usually no central authorities that specifically make decisions on behalf of members who participate in the network. Anyone can create a blockchain, but once it’s live, it’s a permissionless decentralised ledger. Besides, cryptocurrencies are an inseparable part of blockchain networks, which cannot be controlled by anyone, not even its creators. Cryptocurrencies are not printed, unlike FIAT currencies; they are either distributed through an ICO, mined, airdropped or purchased by traders on a cryptocurrency exchange.
Transparency
People are losing trust in banks these days and one of the reasons for this could be that they are centralized organizations with absolutely no transparency. Note that the 2008 crisis was due to banks’ greed and it can happen again. Cryptocurrency, on the other hand, is completely transparent.
The most prominent advantage of cryptocurrency investment is the limited control of one faction, thereby increasing transparency. Many people these days are oblivious to how their deposits are managed by the banks. Once they realize that banks are risking their money, they prefer to withdraw. Under such circumstances, one of the major problems that occur is the lack of cash at banks. Investing in cryptocurrency, on the contrary, will never give rise to such problems.
Low Barrier of Entry
Cryptocurrency’s low barrier of entry allows everyone to buy and trade. This is not the same when it comes to lengthy vetting processes carried out by bonds, hedge funds, and other investments. Many people are opting for cryptocurrencies these days and for a lot of reasons. Low barrier of entry is one of the most prominent ones.
Opportunity to Invest in the Early Stage
If there is a new and promising project you have found, you can start investing in it right away. Unlike stock market investment, you don’t have to wait until the company goes public. Even if you are aware that a particular company is going to perform well in the future, there is no way you can invest in it until it goes public. It’s not the same with cryptocurrency investments. You spot a promising project, you start investing in it. Needless to say, this will generate better returns for you.
Here are a few examples.
If you had invested $1,000 in the following stocks 10 years ago, this is how much they would have worth today.
Netflix: $51,996
Google: $2,992
Amazon: $12,398
Disney: $2,824
Apple: $6,228
Microsoft: $2,260
Starbucks: $4,687
Walmart: $1,931
Nike: $3,319
CocaCola: $1,489
And if you had invested $1,000 in Bitcoin 10 years ago, you would have made $165,656,565 today!
Rest assured, contrary to popular misconception, cryptocurrency is not a bubble.
