5 Reasons We Should Start Learning How Cryptocurrencies WorkRecently, the talk has been gaining momentum that cryptocurrencies are this big bubble from which one should stay away. We believe that the situation is completely opposite. And we need to study carefully the whole phenomenon of cryptocurrencies and blockchain projects.
What makes us think so?
1. Preservation and transfer of value over timeBitcoin is an asset that is not controlled by banks, governments or central banks.
Example: Most of us have a plastic card on which, as you might think, your money is stored. But this is an illusion. This money is not yours. Even the card is not yours either. Your bank can freeze your account in an instant on any far-fetched pretext — your operations have seemed dubious to someone, you have used a coin card abroad, the bailiffs have sent in a writ of execution to block money. It’s not your money, it’s the bank’s money that it allows you to use!
With Bitcoin the situation is different — digital money is stored in your personal wallet. Only you can dispose of them. Money belongs to you personally.
2. Inexpensive cross-border transactions around the worldExample: It’s easy for you to send money to the USA! If it is a small amount, you still can somehow carry it with you, but then any sum over $10,000 must be declared. And what if you need to do it fast? You will have to open a foreign exchange account, then pass the bank’s currency control. All foreign currency transfers in Russia are carried out via a personal visit to the bank only. You need to present documents to justify your payment, and finally, the transfer will cost you at least 0.5% and no less than $20–50 per transaction. In contrast, Bitcoin payment is fast and many times cheaper. The world is being globalized at a tremendous rate — you surely can imagine the huge demand for cross-border transfers. And it will only grow.
3. Absence of inflationBitcoin is not subject to inflation since there is no chance of additional emission — technologically, the number of Bitcoins will total 21 million, and not a Bitcoin more. Of those, 16 million are already in circulation. Bitcoin is a good means of cost saving, much better than the dollar or the ruble.
4. TransparencyThe technology is designed so that knowing the address of the wallet, anyone can see its balance and the list of in/out transactions in real time. Compare this with bank accounts, where everything is closed and the balance is known only to the bank.
5. High-techBitcoin is traded 24/7, including weekends and holidays. Transfers are sent automatically, without any human involvement. Bitcoin exchanges work in the B2C model, you can open an account there in a couple of minutes, and everything operates in the browser, no applications or terminals need to be downloaded. An incredible level of convenience compared to conventional brokerage.
We consider Bitcoin to be the most powerful and compelling implementation of blockchain technology. And we are only at the very beginning of the crypt boom. Of course, there is an element of bubble, and we will see huge volatility and strong movements, but the general trend will be an upward one for a long time.
Provided by the coinstaker.com https://www.coinstaker.com/5-reasons-we-should-start-learning-how-cryptocurrencies-work
