Since the meteoric advancement of Bitcoin from 0.5 € to almost 5.000 USD in 5 years, or the sudden rocket course boost of Ethereum by almost 2.000% within 1.5 years, cryptocurrencies are now more and more frequent in the media. It is talked about by Blockchain and an enormous innovative potential, but what exactly makes cryptocurrencies "different" and why the financial world is afraid of the change? Here are six of the main key advantages of cryptocurrencies
1. Decentralization
Crypto-payments enable digital payment transactions without central administrations. Due to the decentralized data exchange, individual groups or interest groups, such as banks or governments, cannot simply print new money or manipulate the price. Decentralization of personal data or transactions is based on blockchain technology. The stored transactions in a blockchain are invariable and therefore need no administration or confirmation by a third person. Blockchain technology makes it possible to do business without a third medium-sized man. This can be for example the stock trade without banks or the real estate purchase without notarial authentication. Smart Contracts, the "Smart Contracts", as, for example, of Ethereum can completely replace previous paper contracts with fixedly programmed rules and functions.
2. Access for everyone
There are significantly more people worldwide who have access to the Internet or smartphone than people who have access to the banking system. Cryptocurrencies offers incredibly great potential for precisely this population, since they can now be included in a new financial system. Crypto currencies do not exclude users due to their history or other characteristics. The already widespread user-to-user credit system in the micro-area also uses this potential.
3. Immediate processing
Both in the handling of classical transactions such as the online transfer as well as the purchase of property values or other valuables costs a lot of time by delays by third persons. Transactions in cryptocurrencies can usually be carried out in seconds or minutes, and no third person is required as described in the Decentralization section.
4. Low fees
In contrast to the fee structure within the current banks and financial sector, the actual transaction costs and fees are negligible. The often royally paid middle-men like banks (account management fee, transfer fee, 3-day time working with the money, withdrawal fee at the machine, penalty interest, etc.) are no longer necessary. This has not only the advantage of a better fee structure, but the pure compulsory pay as a money manager is completely eliminated
5. Anonymity
Anonymity = crime? Not at all. The advantage of anonymity is associated with criminal activities such as money laundering, extortion or other crimes. Surely Bitcoin& Co. has also been used by various groups that make the anonymity of cryptanalysis for non-legal activities or interests their own. But anonymity also means equality of opportunity and no glass accounts. Everyone has the opportunity and the right to property, without regulations or other institutions, who want to know exactly which man has how much money. With the argument of crime is tried to attach a negative image. To this end, I recommend that you deal with the topic "The biggest money laundering scandals of the past 10 years". The focus is not on Bitcoin but who would have thought the big bank.
6. New business models
The technical innovative force creates disruptive business models, which will bring down entire industries. This results not only in advantages for users but also for companies. With the help of the blockchain old monopols can be brought to a collapse and new companies with other merit and service models emerge.
If you are interested in the different ways that you can invest in Bitcoin , Ethereum and other cryptocurrencies, and how an example portfolio could look like, you should read on here.
INVEST IN CRYPTO INVESTMENTS
Recently, more and more supposed "financial experts" are voicing their warnings about Bitcoin Investments and other cryptic threats. The argument can usually be traced back to four points. investing in Cryptocurrencies
- Unregulated markets without state supervision or influence of state authorities and control bodies
- No real counterpart in cryptocurrencies, but creating the value from "the nothingness"
- Investment bubble
- Cryptocurrencies are used by criminals
Even established newspapers and media rely on the largely unimaginable and false "analyzes". Therefore, you will find some background information on the topic of money system, cash abolition, cryptic currency and money laundering.
Those who have understood how the general money system works, who profits from it, and who manipulates it, will also understand why exactly these interest groups, such as politics, banks, etc., have absolutely no interest in the fact that more people and companies resort to unregulated currencies. Decentralized markets can not be manipulated or regulated.
This means that the user is completely free in the use of his resources, taxation by the state will be very difficult, courses are determined by supply and demand and not by a central fiscal policy. Furthermore, obsolete fee systems, such as account management fees, transfer fees, etc., are replaced by minimum fees, which will benefit users. In the end, this means that the most important control instrument is taken away from the current control units, thus creating a complete freedom of use. All of the above-mentioned arguments against cryptocurrencies can be completely and very simply invalidated, if one has understood, who profits from cryptocurrencies and whose existence is threatened by it.
I personally assume that the reporting will be even more severe and there will probably also be legal restrictions. But if the current development continues, it will be too late for any attempts to control the markets and that is also good.
In contrast to other control instances, the blockchain is incorruptible, neutral, and not self-sufficient.
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