Most people and governments of various nations have all come out to warn people about holding and trading of cryptocurrencies, but these warning will not make cryptocurrencies go away. You might ask why. Not to worry, this article will offer reasons why Cryptocurrencies will not go away in 2018 and the coming years.
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Some of these reasons include :
Inflation of Fiat Currencies
The inflation rate of fiat currencies is one reason why cryptocurrencies won't go away. For example, more people in Venezuela and Zimbabwe are running to invest in cryptocurrencies because of the inflation level of their local fiat currencies. This means that if the inflation level rises in other countries, more people will keep investing in cryptocurrencies making it more difficult for it to go away.
Experts have predicted that Euro (€) will drop in value against the US Dollar because of the Brexit. If this happens, it definitely means that holder of Bitcoin and altcoins in Europe will experience a 10 to 20% increase in the value of their respective tokens held. Also, it is predicted that an economic crisis will happen meaning that more people will invest in cryptocurrencies in the future to ensure that they do not lose their money when this crisis occurs.
Scarcity of The Digital Tokens
Most cryptocurrencies have limited supply of their tokens. According to one crypto commentator, Altucher James, he said that there are over 16 million millionaires in the world today, there are about 16.6 million BTC tokens in circulation meaning that one millionaire can only buy 1 BTC. This scarcity is why more people would keep investing in them. If a particular coin is scarce the value will keep increasing meaning that more people would want to invest and make profits.
This scarcity will make more people want to invest in cryptocurrencies as they stand to make profits from them.
Security
It will be difficult to forget the financial crisis that occurred in 2008, where hundreds of people lost their entire life savings because most banks went bankrupt or were liquidated. Although European countries helped some banks to repay the victims, other still lost most if not all of their life savings to this crisis. The decentralized nature of cryptocurrencies ensures that individuals get total control of their funds. Investors of cryptocurrencies do not have to pay for tax and they can carry out anonymous transactions without interference from any third party.
Applications
Cryptocurrency platforms are not only designed for trading and exchanging, most of these platforms offer users various technologies that will ensure that certain services are catered for. Cryptocurrency platforms like NEO, Ethereum, Cardano and others allow users/ developers' to develop decentralized applications that can be used to solve certain societal problems. Also, cryptocurrency platforms like Ripple are used to make payments across countries. These important features and uses of these cryptocurrencies are one reason why more people are beginning to invest in them.
The more people invest and hold crypto coins, the more difficult it becomes for them to go away.
