The cryptocurrency has come to stay, even with all the harsh government policies and all, it has continued to change the financial market as we know it. One of the commonest advantages of cryptocurrency is that it allows virtually everybody to be part of the market. This is unlike the other investment methods where the investors will need to have considerable investment capital before they can penetrate the market.
This is one of the reasons why the cryptocurrency market has gained a lot of interest since its introduction in 2008. Today, virtually all the big companies have abducted one coin or the other as their payment method. And from the look of things, websites like meta.reviews might even go for it in near future.
Although its newfound popularity is not going well with some governments around the world, that has not in any way hindered the performance. As this industry continues to experience a large flux of investment, most governments have bent to pressure by adopting it as a medium of monetary transaction. Countries like El Salvador went a little bit further by making Bitcoin the country’s national currency. According to Chainalysis’s 2021 report from Global Crypto Adoption Index, India ranked second after Vietnam which tops the list.
If you are interested in investing in the cryptocurrency market but yet to understand why you should do so, we have drafted some of the reasons why any interested investor should consider the cryptocurrency market as the best investment opportunity in the 21st century.
1. It Gives you Total Control
The decentralized pattern at which the cryptocurrency operates makes it even more trustworthy for anybody to invest in. It means you are the only person that is in charge of your investments, unlike the third-party system being operated by the banks and other financial houses. Again, unlike the stock or forex market, the cryptocurrency market is controlled only by the market forces – no middleman, no influencers, just the market deciding for itself using people’s financial behavior.
2. It is a Deflationary Asset
Coins like the BTC and others are considered deflationary assets because of their limited supply. When the purchasing power goes up, there is a greater propensity that is going to create scarcity, and when that happens, those who made an earlier purchase will have to reap a bigger profit. This is because those late buyers will have to be buying from the early birds, but this time for an, even more, higher price.
3. It is Secured and Transparent
Over the years, the financial world has been battling with a series of cyberattacks from those black hat hackers that have made companies lose millions of dollars, but that is not the case again today. The cryptocurrency runs on blockchain technology. The blockchain has been known to be the world’s safest cyber security interface, hence, cannot be hacked. This feature has made transacting using cryptocurrency the safest and the most transparent.
4. Perfect Alternative for Long-term Investors
Cryptocurrency has changed the way investors see long-term investments. Before now, an average investor sees tangible assets like lands, estates, gold, diamonds, and other precious stones as the only long-term investment they can think of. But this is not the same today ‘cos the crypto market didn’t just allow you to buy these coins and save for long term purposes, it allows you to invest twice as little as what you will spend buying those tangible assets, yet make the same profits (if not higher what you would make from your tangible assets).
5. Flexibility in Trading
The cryptocurrency, like the Forex market industry, is always alive 24 hours every day, it doesn’t take a break. This is unlike the stock market that has an opening and closing times. The flexibility part of it still cuts across its movement pattern, a typical example of this is the Dogecoin and Ethereum which have witnessed rapid change in their values all along.
Some Known Challenges of Cryptocurrency Industry
Even with the $45 billion market size, there are still some known challenges facing the cryptocurrency market. Some of them include:
• Government Policies
This is the most visible challenge of them all. Today, governments like China, Nigeria, Bolivia, Indonesia, Turkey, Egypt, and others have placed a ban on either cryptocurrency mining or its transactions. There is no specific reason though, but most of them believe that the existence of this new form of money will give scammers, money launders, and corrupt politicians a field day. While this might be true, there would have been a considerable solution to it that would have completely evaded a complete ban.
• No Room For Regulation
This is another reason governments are not letting the sleeping dog lie when it comes to issues that concern cryptocurrency. The fact the governments cannot control the blockchain system makes it frustrating for them. And in an actual sense, this can be risky because unlawful groups like drug cartels, terrorist organizations, and anti-government groups can use it in a transaction. But even at that, some regulatory bodies are gradually springing up to that effect.
• Third Party Issue
Because of its decentralized pattern, the problem of wallet keys often emanates when the original owner is no more. The fact that this key won’t be recovered when it is lost makes it a risky journey to embark on – when the key is lost, the coin is lost.
• Market Risk
The cryptocurrency market is very flexible, while it can make a 1000% increase at a time, it can also go all-time low. The movement depends on the market stance, thus, you can lose everything if you didn’t make the right analysis before entry.
Cryptocurrency remains one of the best innovations that has hit the 21st-century world. The challenges it is currently experiencing are because many people are yet to trust the system, but with time, the world will come to realize that crypto does more good than harm.