Why we shouldn’t write off crypto just yet

• The power of blockchain – Crypto assets are based on blockchain technology, which generates immutable transactions in a distributed ledger format. It guarantees that the network does not have a single point of failure. Since cryptoassets are powered by the blockchain ledger at its core, a community rather than a single person controls them. This not only reduces risk, but also eliminates many of the processing and transaction fees.
• Cross-border payments – Coins with limited supply, such as Bitcoin, have a high inventory turnover ratio. Future mining will produce fewer bitcoins, keeping the supply essentially constant. This protects against a surplus of Bitcoins falling. When money is transferred using cryptoassets, value is maintained and transactions are instant. Few cryptoassets, unlike fiat money, have a limited supply that is limited by mathematical procedures. This prevents any political entity or government organization from having its value reduced by inflation. Also, a government agency cannot seize tokens without the owner’s consent due to the cryptographic nature of the assets. On the other hand, a significant amount of money is wasted through cross-border remittances due to intermediaries and the structure of the current financial system.
• Transparency in transactions – Users can view crypto transactions made on public blockchains. Since the blockchain that powers public assets is open source, they are trustworthy. A blockchain ledger’s entries cannot be changed, and anyone can see the transactions. The ability to trace each transaction back to its origin increases transparency. As a result, transaction histories are immutable and irreversible. Since the data cannot be altered in any way, this can significantly reduce corruption.
• Inclusive financial system for people from all over the world – Economic disasters have reduced the value of fiat currencies in many nations. It is challenging to buy an asset in these nations with fiat money. Crypto-assets can empower people in such nations to own valuable assets. Crypto asset transactions save time and money as they are instantaneous. Lowering transaction costs enables consumers to save money on each transaction.
• Building a decentralized future – The information and wealth on the internet is controlled by a small number of organisations. Because there is less asymmetry in the distribution of wealth among cryptoassets, they are more egalitarian. Crypto-assets like Bitcoin have the power to completely transform people’s relationship with money by offering control. Although credit card and PayPal payments are forms of digital cash, Crypto is decentralized and transparent to the fullest.
• The bottom line

Crypto has won over many conventional investors. The blockchain industry can transform society in the same way that the internet revolutionized information availability in the 1990s.

However, fans of digital assets should fully understand the risks associated with crypto before starting to invest. Thorough due diligence is required before investors make a buying or selling decision. They should take the time to understand the most typical traps that new investors fall into as well the security processes.

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