The cryptocurrency revolution is here, and we are living in the midst of it. At the point of writing, Bitcoin (BTC) prices have remained above $17,000, having previously broken the $10,000 ceiling.
On paper, the concept of cryptocurrencies is ludicrous – an unbacked currency without any tangible presence or value. Yet, here we are in the middle of what is likely to be another Bitcoin bullrun.
The fact of the matter is that the cryptocurrency revolution is a product of the times that we are living in.
As an increasing number of people begin to lose their faith in traditional government systems and cashless payment solutions become the new norm, cryptocurrencies will naturally rise to fill the void that is left in place.
Thus, as a business owner, there are plenty of reasons why you should begin gearing yourself up for the cryptocurrency revolution.
1. Cryptocurrencies are inflation proof
When Bitcoin was first introduced in 2014, the elusive Satoshi Nakamoto wrote that cryptocurrencies would represent the future of money.
Being decentralized and entirely unregulated, cryptos are able to avoid the two major shortfalls faced by fiat currencies – inflation and government intervention.
As we’ve seen during the COVID crisis, governments were forced to print cash at an unprecedented rate in order to stimulate the economy. On the short-term, these cash injections may stimulate spending but only to a certain extent.
With an oversupply of cash in the economy, we will likely end up in a situation where too much cash is used to purchase a limited supply of goods. This results in the rise of inflation and a devaluation in the nation’s currency – thus leading to a decline in economic growth.
In stark contrast, cryptocurrencies like Bitcoin have a limited supply in the market, which makes them theoretically immune to inflation.
The continual halving of Bitcoin means that the supply of new cryptocurrencies into the market remains under control – thus preventing an erosion in their value. This is one of the reasons why investors have opted to invest so heavily in the crypto market.
2. Cryptocurrencies are an excellent investment
Building upon our previous point, Bitcoin and other cryptocurrencies have been proven to be an excellent investment in recent years. During the 2017 Bitcoin rush, BTC prices hit stratospheric levels as inventors saw ROIs of over 10000%.
Now in a time of great uncertainty, the value of fiat currencies such as the USD have been called into question with many searching for new safe haven investments in lieu of gold.
Bitcoin is one such investment – being unregulated and decentralized, it was able to largely avoid the turmoil of 2020. In fact, many have identified Bitcoin as being akin to a form of digital gold – thanks to its stability as an investment.
In fact, some people are already accepting their salaries in Bitcoins. UFC fighter Jon Pitch became the first in his business to do so in 2015 and since then a few others have followed him. Unfortunately, not many websites allow you to bet on MMA using Bitcoin (click here to know more about how to bet on MMA and which payment methods are accepted).
Besides Bitcoin, other cryptocurrencies such as Ripple XRP (XRP) and Ethereum (ETH) have proven themselves to be an equally solid choice.
3.The utility offered by cryptos
Being a stable investment is all well and good, but what other uses do cryptos such as Bitcoin and Ethereum bring to the table.
For starters, Bitcoin has been accepted by various businesses around the world as a medium of exchange – thus making them a truly viable currency. The ease in which these currencies can be transferred coupled with increasing rates of acceptance all serve to further benefit the case for cryptos.
While Ethereum may not be as glamorous or as sexy as Bitcoin, Ethereum makes up for all of this with its useability. From smart contracts to advanced database management, Ethereum has found a niche as a working man’s cryptocurrency.
The world of cryptocurrencies is definitely an exciting one and the future is definitely bright. With a large assortment of cryptocurrencies on offer, enthusiasts will be spoilt for choice.
