There is no doubt that the cryptocurrency world is getting bigger with every month that passes, and we are not talking about the capital market, but about the people actually interested in cryptocurrency. But what makes people be interested in cryptocurrency?
Is it the fast ROI due to volatility, is it the new stock exchange of the moment, what is it? We tried to pinpoint some of the reason for which people are increasingly more interested in cryptocurrency.
Financial advantages make people be interested in cryptocurrency
The interest in cryptocurrency is partly a result of the research people have made in finding better alternatives to the financial industry. Fintech is a fast-growing sector and it is seen as the new kid on the block. Like the internet was a few decades ago.
Clearly the interested in these topics had been on the rise, judging from an analytical point of view.
Websites like Coinmarketcap have reached traffic peaks with every rise of cryptocurrency prices, and that’s just a small indicator of the population interest. We are not talking about hearing about Bitcoin or cryptocurrency for the first time. Grandmas from South America have heard about Bitcoin from the radio. Now, we are keen to discover what makes people be interested in cryptocurrency and hopefully discover how to increase awareness and how to explain it to others.
Here are a set of points which seem to make people interested in cryptocurrency.
Cryptocurrency has no borders
One of the defining characteristics of a country is that it has its own currency. The basic aspects of world currencies can be found in cryptocurrency as well, but there are improvements which the fiat currency lacks. Being able to perform borderless transactions is one of them.
By performing cryptocurrency transactions, where no centralized authority is in charge of that, and everything is transparent on the blockchain, payments and financial transfers can be done equally from any part of the world to another. There are no extra fees for overseas transactions. Everyone pays the same. Everyone can participate.
Cryptocurrency trading can lead to profit
As for any other field in this world, the possibility of making money using cryptocurrency is raising interest. Most people work hard for their dollars, but today’s technology makes it easier for individuals to invest, speculate or even get free money.
It’s not how hard you work, it’s how smart you work.
By learning the basics of investing, learning what newbies mistake to avoid making when trading cryptocurrency, trading cryptocurrency can lead to a profit. The internet is full of stories of how investing in cryptocurrency has changed people’s lives, but don’t get too hyped about it. You might be inspired with your investment, but don’t ever invest more than you are willing to lose and also be open to getting crypto from smaller projects.
Cryptocurrency keeps your identity private
Indeed, it’s advertised that blockchain keeps your identity private, but don’t get fooled. It mostly provides pseudo-anonymity. Because there is no bank or other central authority behind the blockchain, you get this anonymity. But it can also be traced back to you in more complicated or suspicious cases like money laundering or other criminal activity.
Cryptocurrency is based on demand
They say that Bitcoin was created as a response to the financial crisis of 2008. It was meant to be a currency that doesn’t depend on banks and that it wouldn’t be affected by inflation.
Bitcoin is mined at a certain speed and it has a finite number. There is no way to fabricate more bitcoin, as it is the case with fiat currency. The value of Bitcoin is based on demand.
Cryptocurrency is transparent
And fraud-free. It doesn’t mean bad people can’t use it, it just means it is transparent and everything can be checked by anyone. No central authority doesn’t mean less control, but more. By using the block explorer of the blockchain, anyone can check what amounts were transferred to what addresses. And of course, you can backtrack addresses and/or amounts.
Cryptocurrency can grow fast in value
This is where the profit can come from. That’s what makes the newspapers’ headlines. This is where all the media attention comes from.
And that’s a principal conductor of people’s interest in cryptocurrency. Based on a simple principle or demand, when someone or more individuals buy a lot, then the prices go up. If they sell, they go down. This is considered to be a risky investment, but most are in for the long run and don’t mind too much if Bitcoin or any other cryptocurrency has dropped 10%.
The best thing about this volatility is the awareness it brings and how it attracts more people, as many are attracted by the possibility of making a quick buck. But then most stick around because they learn about the blockchain technology and once it is understood, they can see how it can change the future of our financial sector.
Ready to read and discover more about Bitcoin, blockchain and cryptocurrencies? Start with the cryptocurrency beginner’s guide.