In the last year we have noticed the rise of cryptocurrency. The bitcoin, which is still the most famous crypto coin in the market, has jumped from 877€ to 16,297€ and stabilized itself recently on 6,671€. The Buzz and extreme reports around the web concerning those coins have left many people with a negative feeling, without having a minimal understanding in the topic.
In the reality, there is not such a big different between the money that you hold in your bank and a cryptocurrency. The main difference between them is the amount of control the government have on your income and on your economic freedom. Let’s understand why.
In many conversations I had with good educated people, the main objection for the investment in those coins boil down to 2 arguments:
- It is money that do not really exists.
- It is used for black market purposes.
I find those arguments quite amusing, as they are mainly a blind repetition of media manipulation in the mind of good and simple people. Moreover, those points are true as well regarding the money in your bank and are probably the exact reasons I would recommend people to invest in crypto currency.
To make it short and simple, based on latest publications, the amount of actual cash in circulation comparing to the money that exist in the market is no more than 10%, a number that diminish each year. You can make a self-check in your private life and see that the majority of payment done in your life are no longer involving cash.
Bitcoin dropped from 16k to 6k in 4 weeks, it is true. From the other side, the stock market has lost more than 4 Trillion Dollar in less than 3 days.
Based on that information, we can agree that the majority of the money we call safe do not really exists any more, exactly as the cryptocurrency. Moreover, the value of the money based on its world trade, exactly as cryptocurrency. The difference is mainly who control the money
The second point mentioned above, concerning the usage of crypto coins in the black market is based mainly on ignorance regarding our current economy. In the reality, it is true that Bitcoin and other crypto coins are used in the black market. From the other side, all the rest of the currencies in the world are used in the same black market as well.
The main difference between the two concepts, is that the government do not have control over crypto currency. Which is a good reason for the government to be concerned, not its citizens.
New technologies and progress requires adaptation and open mind. It is true to say that cryptocurrency is new and require an adaptation by the market to arrive to his full potential. But, believing that bitcoin is dangerous and unsafe based on the arguments made above, are just a reflection of governmental agendas for the sake of maintaining control on our lives.
Check it out in your life and search to understand more. The future is in our hands.
It is important to notice that like any other investment, it is important not to put all your saving in one place. Moreover, when investing your savings, understating the price of whatever you buy compared to its previous price and the reason for it, is important and necessary to promise more security in your investment. In general, the most important point of long term investment is, that if you do not have spare money to invest, do not invest.