Cryptocurrencies such as Bitcoin are gaining ground across the globe and are accepted as means of payment by large companies such as Microsoft and Starbucks. This is only the beginning, according to businessman, crypto enthusiast, and philanthropist Arif Efendi.
Cryptocurrency – The Beginning
My interest in cryptocurrency began some years ago. It is something that has been on my mind for a while, but I did not really do anything about it, to begin with. Today, I find cryptocurrency more fascinating than ever.
What got me interested? A big part of cryptocurrency’s popularity stems from the technology behind it: blockchain. This is especially true for Bitcoin and other cryptocurrencies that are based on blockchain technology.
So naturally, my first interest was in the blockchain itself. How can data be stored in an immutable way over time? This led to further research about data storage and encryption (which cryptocurrency uses as well).
This is where it gets really interesting. Blockchain’s immutability, decentralization, and other qualities make cryptocurrency a perfect tool for online voting. Online elections are very costly and even risky to organize, but cryptocurrency might be able to change that.
A quick Google search about cryptocurrency also brought me to an article about the ICO (Initial Coin Offering) of the messaging service Kik. This made me realize that cryptocurrency can be used in any kind of business model – not just financial ones.
Differences Between Cryptocurrency And Stocks
Over the years, many people have asked me what the differences are between cryptocurrency and stocks. Though there are similarities, investing in cryptocurrency differs from investing in stocks. Here is a quick breakdown of the two:
- Cryptocurrency is virtual and intangible money created and exchanged online.
- Cryptocurrency can be converted into real currency, but usually for a fee.
- Cryptocurrency has no physical form.
- Transactions involving cryptocurrency are irreversible.
- Stocks represent shares of ownership in corporations that trade on public markets.
- When an investor purchases stocks, he or she is buying equity (ownership) in a company.
Why I Prefer Cryptocurrency Over Stocks
Cryptocurrency has become a really hot topic in the world of finance and investment. A lot of people find cryptocurrency to be a great investment that yields high returns over time. I also feel like cryptocurrency is an even better investment than stocks when it comes to long-term investments.
Stocks are extremely volatile for short periods of time. Cryptocurrency, however, is far more stable, predictable, and less risky, which makes cryptocurrency a much better investment option in my opinion. Cryptocurrency allows you to remove all the middlemen from international transactions.
That makes it easier for many people who cannot access financial institutions due to reasons such as incomprehensible fees or high minimum deposit requirements. By using cryptocurrency, they can reach their potential earnings, increasing their earnings faster – even if they only deal with cryptocurrency.
Stocks, on the other hand, are more volatile than cryptocurrency due to excessive regulations that intensify whenever there is an economic crisis or recession. Therefore, investing in stocks is riskier than investing in cryptocurrencies.
Once cryptocurrency becomes mainstream, it will allow many new opportunities that will not be available through traditional means. Companies like Starbucks and Microsoft have already started accepting cryptocurrency, making cryptocurrency viable even for daily transactions. This makes cryptocurrency an easy choice when it comes down to trading one over the other, in my opinion.
Cryptocurrency Is Here To Stay
The first cryptocurrency, Bitcoin, was created in 2009 by the pseudonymous developer Satoshi Nakamoto. There are now over 700 different types of cryptocurrencies. All of them with different values, depending upon people’s perception of their usefulness and trustworthiness – also known as their ‘believability.’
Some have fallen by the wayside, whereas some have risen to prominence rapidly due to an innovative business model or commoditization of a useful resource. Many cryptocurrency enthusiasts think that cryptocurrency will become the dominant form of money globally because cryptocurrency allows for near-instantaneous transactions, which is useful for e-commerce.
Of course, cryptocurrency has not achieved this yet. Cryptocurrency adoption is thought to be as low as 0.01%. That said, cryptocurrency has been growing rapidly in the last couple of years. Therefore, cryptocurrency enthusiasts, like myself, are hopeful that cryptocurrency will indeed become a dominant currency form sooner rather than later.
The idea of cryptocurrency being introduced by a mysterious entity was initially met with skepticism from many people, who could not understand how it would work. However, the rise in Bitcoin’s value since its inception has meant that more people are now interested in cryptocurrency.
That also explains the more than 700 different cryptocurrencies available at the moment. That number is only expected to grow. There is no denying that cryptocurrency is here to stay. It is popping up everywhere, including in novelty vending machines that dispense cryptocurrency. Yet, cryptocurrency is not just for the novelty machine market.
The cryptocurrency industry is growing, which means there are more cryptocurrency jobs available than ever before. Combining growing interest with an increased number of cryptocurrency jobs available, it is clear why the cryptocurrency is here to stay. So, buckle up, crypto enthusiasts, because things are about to get wild.
Authors Bio: Arif Efendi is a London-based businessman interested in cryptocurrency, investments, sports, and entertainment.
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