What is crypto? It’s short for cryptocurrency. I believe it is the future of money and will affect every industry in the global economy and create new sectors we have yet to conceive. The comedian John Oliver jokes that crypto is everything you don’t know about money, mixed with everything you don’t know about computers. Which is why we need education.
Crypto uses cutting edge technology that is changing the way our global economy works at a core level. In this article, you will learn why you should care about crypto and want to learn more about it.
Cryptocurrency was invented to address the core problems we have with centralized authorities. We can’t trust them.
Normally a centralized authority like the government or central bank controls money. And yet it is general knowledge that banking and government scandals plague the system.
A cryptocurrency like Bitcoin isn’t controlled by anyone. It is peer to peer.
And it has many benefits compared to standard money transactions with banks.
Cryptocurrency has much more ability to be anonymous.
So if you like privacy, or prefer that a government or bank doesn’t know what you’re buying and who you are paying, that is a major benefit. That does mean that bad guys can do bad things with crypto. And that’s one of the reasons why crypto sometimes gets a bad reputation. But in my opinion, the benefits outweigh the drawbacks. I believe the future crypto economy will have new decentralized institutions and systems to address bad actors.
Third parties such as banks and governments cannot freeze assets or stop payments of cryptos.
Purchases are not necessarily taxed, although depending on your jurisdiction, you might be liable for taxation on your cryptos if their value goes up and you cash out into your national currency.
Transaction fees for cryptocurrencies can be much lower than bank transfers and Western Union.
For example, sending a million dollars in bitcoin is fast and easy.
So as you can see, working with crypto provides a lot more freedom. It can also help you avoid the drawbacks of a corrupt government or bank.
Almost every major corporation and government is researching or already integrating blockchain technology (the underlying technology of many cryptocurrencies).
Almost every major global retailer is accepting cryptos or considering it.
The global cryptocurrency market capitalization has been growing tremendously. As of May 12, 2018 Bitcoin alone is 145 Billion. See the charts below to get an idea of the size of bitcoin and cryptos (at different dates in time) compared to other markets.
So as you can see, cryptos are growing in popularity and they have many benefits. Yes, cryptos are complicated. But so are cars. However, you don’t have to understand how an internal combustion engine works to get the benefits of a car. Likewise, learning how to use crypto is a lot easier than understanding it’s underlying technology.