It's no secret the mass amount of success for Bitcoin, Ethereum, and other cryptocurrencies is real. Even though crypto is “unstable” as of right now, I believe eventually it will be the #1 payment method in the world. The question is which crypto will take that spot. Is it Bitcoin, Ethereum, or even Solona? Who knows! I personally am investing in all 3. There are many reasons as to why I think in time cryptocurrency will overthrow the regular everyday dollar. In this article ill be discussing key factors as to why this switch will happen, and for what reasons.
You probably heard the word inflation a lot in the past few years. As you may know, the USD is losing its value at a rapid rate. Just look at last year in 2022. Inflation was at a record high at 7%. That's the highest since the 1970s! The great thing about crypto, especially Bitcoin, is that nobody can really inflate that price. There is nobody able to print Bitcoins and no government control over the currency. Having to worry about your valuable money decreasing its value is no more! That is of course when crypto is more stable. This leads me on to my next bullet point for this topic.
Banks are scared to death right now. Why? The banks are concerned because cryptocurrency exchange is not a banking transaction. If cryptos gain popularity, they may disrupt banks’ ability to create money. You might be thinking that's terrible. How am I supposed to make loans? A crypto-backed loan may distribute funds almost instantly, unlike traditional lenders with longer waiting periods. Your loan amount will be based on the value of your asset, and many exchanges will let you borrow up to 50% of that value. There is a quote about Bitcoin that I thought was pretty neat. It goes “Bitcoin will do to the banks what email did to the postal industry.” -Rick Falkvinge
Another great aspect of crypto is that it’s very difficult to successfully steal. The reason for this is because you can see every crypto transaction, and what wallet the cryptos went to. This makes it easy to find out exactly who the thief is. Only 0.34% of Bitcoin transactions were theft. Unlike crypto, cash is very easy to steal and successfully get away with. You can’t see where your cash was spent or went. Once it's gone, there are no refunds or help you can receive. I don't have an exact estimate on how many transactions of cash were theft but the average number I found online was 2.5%–5% which is way more compared to Bitcoins.
I understand that cryptocurrency as a whole has a long way to go. That being said I believe somewhat in the near future, some cryptocurrency will be making its way competing with USD and other forms of money. It's only a matter of time. Thank you for reading this article. Do you agree? Do you disagree? Let me know in the comments below. I would love to hear your thoughts on this type of subject.