Since the onset of the Covid-19 pandemic, the world has seen a significant evolution in trade, transaction, and financing. Digital currency is one of the new things in the market and has gained local and global attention. As economic uncertainty spread during the pandemic, the world’s most famous digital currency value increased by more than 500 percent. Bitcoin prices skyrocketed in late 2020, and crypto-currencies are here to stay, but proper regulation is required to take them seriously. Whether Bitcoin is the best get-rich-quick scheme in town or the next financial bubble to burst is usually a matter of opinion, but investors were sweating this quarter. Bitcoin’s value has steadily risen to $1 trillion, making Cryptocurrency a viable investment tool that hedge funds and banks have steadily embraced in recent weeks.
Because of its popularity, many experts have questioned whether Cryptocurrency is a good or bad investment to pair with a mortgage. I agree that it’s a good business venture, but I’d proceed with caution because of the following:
- Lack of bank support
Cryptocurrency does not depend on banks as its intermediaries, which is an appealing perspective for those whose financial collapse has badly burned, and it is not a property-based system.
- Non-decentralized nature
Cryptocurrencies are not be supported by any countries or central authorities. As a result, while this creates a sense of danger, it also means that their potential uses are limitless and unmatched by any other currency in the world.
- Digital innovation.
The digital currency was created for an autonomous economy based on the idea that if anything rises too fast, it may risk collapsing; however, the economy will slow down if something grows too slowly.
Despite the risk, it begs the question if Cryptocurrency is safe. Honestly, it is a secure system that thieves or bank con artists cannot steal. Cryptocurrencies rely on cryptographic methods to keep the system locked and safe. Any done transactions are chronicled in a digital ledger called blockchain, which encrypts the distinctiveness of the “coin,” and this is digital currency’s security. Doing this prevents and controls people from spending and using the money more than once in a transaction hence safe.
Furthermore, because cryptocurrencies are global, accepting their usage will expand individual and business markets far beyond their existing reach. Blockchains conceal the digital currencies with a near-instant nature of Peer-to-Peer transactions; hence there are far fewer associated identity theft risks, thus an advantage to many businesses. Here are some benefits that make Cryptocurrency a good investment:
- Privacy: Secrecy is associated with digital currencies that can never be linked to credit cards, cheques, and traditional bank accounts, hence very hard to steal
- Speed: Cryptocurrency allows instant transfers from anyone, anywhere in the world, to anyone, anywhere else in a fraction of a second.
- Affordability: Cryptocurrencies are simply a less expensive option than traditional bank accounts because they do not require a minimum monthly deposit, stamp duty, or trading fee.
- Convenience: Unlike banks, which require individuals to go to each branch individually for bulk transactions, cryptocurrencies are easily digitalized, and it is not tangible.