A reason why we can invest in cryptocurrency

Cryptocurrencies have become a topic of heated debate around the world. In fact, you yourself may have had an interesting crypto discussion with family or friends.Truth be told, the world of crypto is quite complex and no one knows everything about it. This makes it even more difficult to start investing in cryptocurrency or have a rational conversation about it.That said, some cryptocurrencies like Bitcoin and Dogecoin have gained mainstream credibility due to mass adoption, notably by Microsoft, PayPal, Starbucks, and more.Other digital currencies such as Ethereum and Cardano have generated lucrative returns. So with this blog we are going to focus on the top 5 factors that make investing in crypto worthwhile.

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Get a potentially profitable return

First, crypto has a lot of potential because it is a relatively new concept. It opens the door to endless possibilities for the future.For example, if the technology associated with a cryptocurrency is mainstreamed by a top non-crypto brand, the chances of an Ether (ETH) coin increasing in value greatly increase.This allows early investors to potentially reap higher returns due to future scope. Bitcoin is the perfect example of how mainstream adoption can increase the value of a cryptocurrency.

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Protect your wealth from inflation

Inflation reduces the value of fiat currencies over time but does not affect cryptocurrencies in the traditional sense. Why? Because cryptocurrencies are decentralized and have a limited supply.Governments or banks cannot manipulate crypto at will. More importantly, this means that cryptocurrencies have the potential to generate returns that exceed the rate at which a fiat currency loses value over time.However, this does not mean that cryptocurrencies are inflation-free. If more cryptocurrencies are mined, theoretically their value will decrease but there are measures to deal with this.The best example is Bitcoin. Bitcoin mining rate is cut in half every 4 years. This seems to have two broad implications. One, scarcity will persist and two, inflation will become negligible.

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Take full control of your investments

All roads lead back to decentralization. As we discussed earlier, governments or federal agencies cannot manipulate the value of cryptocurrencies because they have no control over them.Only the cryptocurrency holder has the necessary means to access their investment, known as a private key, which provides complete control over buying, sending and receiving cryptocurrencies.That said, if any government chooses to do so, as is the case in China, crypto can effectively be outlawed with the stroke of a pen. But free market economies have decided not to go that route.Countries like the USA, UK and India are trying to understand and regulate cryptocurrencies to introduce the fail-safe that made investing in equity securities reasonably safe decades ago.

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