With the growth in the cryptocurrency market, it’s easy to understand why many people have decided to invest in cryptocurrency as their long-term assets. But how do you know that cryptocurrencies are good long-term investments? Here is why you should consider investing in cryptocurrencies for long-term growth.
Crypto Solves an Issue and Creates Value
Cryptocurrency is an asset that solves various financial and non-financial issues that currently plague the global economy. Here are some of the main issues that Crypto is resolving:
1. Remitting money offshore
This market is worth one trillion USD and costs many people about seven to fifteen per cent to send money to their home countries. However, Crypto allows people to transfer money back home quickly and at a lower cost.
2. Currency devaluation and high inflation
Many people have been subject to weakening consumer purchasing power and money printing through high inflation for many years. Cryptocurrencies solve this problem by programming in a decreasing inflation rate and a fixed supply.
3. Tokenization
Due to inflation and the devaluation of currencies, many assets or investments have become too expensive to buy outright. Many people can’t afford expensive investments, such as real estate. Tokenization can enable people to purchase portions of houses to hold them as investments.
Crypto is not Affected by Economic Uncertainty
We are all conversant with the term interest rates and have read or watched news regarding hikes in interest rates in the past. But, what does an increase in interest rates affect your investment?
When there is an increase in interest rate, the amount of money in circulation reduces, and borrowing costs rise.
The notion is that when the cost of borrowing is high, many people will not spend their money as they are encouraged to save since their savings will earn higher interests. This, in turn, causes the stock markets to move downwards as wealth managers and analysts start to price in dampened demand and increased cost of borrowing.
However, cryptocurrencies have long-term resilience against an increase in interest rates. An increase or decrease in interest rates has an insignificant effect on Crypto’s price. Many investors believe in cryptocurrencies’ ability to provide value or be a store of value through use-cases.
Investing in the crypto market has proven to be the best option for long-term investment. Therefore, enrol in Dan Hollings’ cryptocurrency courses today and learn more about cryptocurrencies.
Crypto sees Adoption and Growth
Technically, Crypto is the fastest-growing technology in contemporary society. The user base is growing at more than one hundred per cent annually. You should be asking yourself; how can you take this as an advantage and invest in Crypto?
Today, more than three hundred million people are using cryptocurrencies globally. This user base is expected to hit one billion by 2024. By 2024, one in every eight people will be using cryptocurrencies for different purposes. These figures don’t just portray a trend but provide a long-term investment, especially if you own a small business.
About the Author
Emily Lamp is a professional writer, working closely with many aspiring thinkers and entrepreneurs from various companies. She is also interested in lifestyle travel, business growth and self-improvement.