Cryptocurrencies: real money or a fad?
2017 is the year of cryptocurrencies. Bitcoin jumped from a few thousand dollars and broke records by crossing the $20,000 mark. Ethereum ether is higher than ever. New coins appear every day and people buy them in a frenzy.
So are these programming codes real money or a fad that will die out over time? Let’s review:
SAVING MONEY
Have you ever sent money to someone through banking channels? Different banks have different protocols, but they all have one thing in common: they charge you for it. Yes, you could say that your bank grants you a few fee transactions per month, but places other restrictions where you are forced to pay for those particular services.
With digital currencies like Bitcoin and Ethereum, you still have to pay to transfer money to someone, but the transaction “fees” you give miners are much lower than what traditional banks offer you.
SAVING TIME
Sending cryptocurrency to someone anywhere in the world is as easy as writing an email. All you have to do is request the recipient’s address, log in to your wallet and send the desired amount. You can then do whatever it is you do in your daily life and the money will be transferred.
UNIVERSAL CURRENCY
OK, so the title is a bit misleading. There are tons of cryptocurrencies out there, so you and the recipient may not have the same coin wallet. If the recipient is flexible (and you have the convincing power), he or she can set up an electronic wallet for your currency in no time.
The most widely accepted currency is Bitcoin and if you have it, you will have no problem with accepting different currencies.
INVESTMENT
With financial crises everywhere and the rate of inflation rising rapidly, one day you’ll find that all those dollars you’ve saved won’t have much buying power for a decade or so. The wise thing to do is to invest them in something that will not depreciate over time. Enter Cryptocurrencies! Mainly due to the way these coins are programmed, they will have a very limited circulation, unlike paper coins, where you can print more.
A simple case of supply and demand will always ensure that cryptocurrencies are of increasing value.
So, there you have it: in my opinion, cryptocurrencies are not a fad. All you have to do is know which one to buy.