Why You NEED to Learn About Crypto

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Quite Frankly, the world is moving towards digital currency. But of course that wouldn’t suffice to convince you why you need to lea about Crypto, so if you’re not familiar, let me try to break it down for you.

The blockchain technology underlying bitcoin and other cryptocurrencies has been hailed as a potential gamechanger for various industries from banking to healthcare to gaming. By removing intermediaries between transactional data and computer networks, distributed ledgers can facilitate new types of economic activity that were not possible before.

Unlike paper currency aka fiat currency, most cryptocurrencies have a limited supply, capped by mathematical algorithms. This makes it impossible for any government or political organization to dilute their value through inflation, which brings us to another common reason to invest, it has come to be a legitimate long-term store of value. The greatest attraction due to the cryptographic nature of cryptocurrencies, is the tax haven and protection from government confiscation crypto offers compared to other securities.

This property makes cryptocurrency attractive to people who are worried about hyperinflationary events, bank failures, or other disaster scenarios. Bitcoin in particular has attracted attention due to its deflationary and censorship-resistant properties, leading proponents to describe it as “digital gold”.

While many supporters believe that digital currencies could become part of daily life, the cryptocurrency market is currently dominated by speculative trading. Studies of blockchain activity show that exchange trades remain the most prevalent use for cryptocurrencies—and account for far more economic activity than ordinary trades and purchases.

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As a new technology, some speculative behavior is to be expected in the cryptocurrency space, especially as blockchain technology matures. However, new investors should be wary of falling into psychological traps such as herd instinct, FOMO or Fear of Missing Outt, or the Greater Fool Fallacy, which can make all the difference between a calculated risk and a foolish one.

Although blockchain technology provides great security for your assets, it is not impervious to scams that try to steal your information in order to hack into your account. It is important to set up strong passwords and security settings as well as be aware of people who try to phish you to give up your personal information.

While it’s clear there are many reasons to be skeptical of digital currencies, many traditional investors have been won over to the new asset class. The blockchain space is frequently described as a transformative industry, with the potential to disrupt the world in the same way that the Internet did in the 1990s.