If you’re wondering whether owning cryptocurrency is beneficial, we tell you everything you need to know about its benefits. Here are 6 reasons why you should consider owning cryptocurrency in 2022.
If the crypto bug hasn’t bitten you yet, you could be wondering what the fuss is all about. Since the creation of the Bitcoin blockchain in 2009, cryptocurrencies have continued to gain popularity. The most significant benefit of blockchain-based cryptocurrencies like Bitcoin is the lack of a central authority, company owner, or payment processor.
With that said, why would you consider cryptocurrencies when your local fiat currency is still working just fine? Are there any good reasons to invest in crypto in 2022? The following are some positive things you need to know about cryptocurrencies.
1. Fast and Easy Transactions
There are different ways to send money or assets to family, friends, or business associates. Depending on the amount involved, most transactions will take three to five days, whereas wire transfers take 24 hours. When it comes to cryptocurrency, transactions will almost always take only a few minutes; funds are settled when the block with your transaction is confirmed. All you need is a hardware wallet, a simple smartphone, or an exchange wallet, and you send or receive funds from anyone anywhere. Cryptocurrencies are also beneficial for people who lack access to traditional banking services.
2. Low Transaction Costs
Even though the demand on the blockchain could sometimes increase the transaction cost, cryptocurrency transactions are relatively less expensive. Transactions using Bitcoin or Ether typically cost a few nickels and dimes and no more than just a few dollars, while others like XRP and Litecoin and even much less. That makes crypto more affordable than your regular bank transfers that, on average, cost between $25 and $30.
Unlike bank accounts that place restrictions on who can access and use their services, anyone can use cryptocurrencies. You can’t compare setting up a cryptocurrency wallet with the tedious procedure of opening a bank account. There are no credit checks for ID verification. As the case in El Salvador demonstrates, it’s become the easiest way for the unbanked to access financial services without going through the centralized processes as long as they have a smartphone and internet connection.
4. Increased Privacy
Cryptocurrency transactions are performed through pseudonyms that make it possible to complete anonymous transactions. The blockchains are a public ledger that records all transactions, and the only thing that anyone can see is the wallet addresses.
5. Inflation Hedge
Cryptocurrencies like Bitcoin, Monero, and Litecoin have a limited supply cap meaning they can become a good hedge against inflation. Monetary inflation happens when governments and central banks decide to print more money, increasing supply due to the limited supply of mineable cryptocurrencies. When we get to the point where there will be more dollars chasing the diminishing coins, the price of the fixed-supply coins has better chances of becoming higher.
6. Seamless Cross-Border Payments
Just like the internet, cryptocurrencies are no respecter of geographical boundaries. You can send funds to anyone in any part of the world without any difficulty whatsoever. This is better than traditional sending money across borders with huge transaction fees. At other times, sanctions, restrictions, and regulations make it difficult, if not impossible.
The Parting Shot
Mentioned above are just a few of the many advantages that cryptocurrencies have over traditional fiat currencies. This, by extension, means, therefore, value in cryptocurrency investments. However, since there are still a few flaws like volatility dogging the crypto sphere; take the time to do your research before dipping your toes into the cryptocurrency market.
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.