Three Reasons Why Crypto is Hot in 2018

The popularity of crypto and blockchain technology has exploded over the past few years, and the public has followed along with speculative fever. In fact, the Foundation for the Study of Cycles, an organization devoted to the study of recurring patterns in cultures and economies, has declared crypto to be one of the hottest topics of 2018. Today, more big names are realizing the potential of the digital currency. Here are three reasons why.

First, cryptocurrency does not physically exist. Many people compare crypto to blinker light fluid. It is not a tangible asset; it does not represent a piece of property or company, and it is not printed like a currency. This makes it a highly speculative form of currency, and it is not subject to censorship or government control. Because of this, it is incredibly easy to lose money on a cryptocurrency transaction.

In addition to its high volatility, cryptocurrency is not backed by any government or corporation. This means it is not a legitimate investment. In other words, it lacks the consumer protections that banks and other financial institutions provide to their clients. Moreover, there are no chargeback mechanisms in crypto. This makes it more difficult for a bank or credit card company to receive a refund in the case of a transaction that goes bad. So, if you’re looking to invest in cryptocurrencies, here are some things to consider.

Firstly, crypto provides options that you can’t get with traditional fiat currencies. For example, it can enhance transparency and facilitate back-office reconciliation. It also helps companies find important clients and vendors. Another great feature of cryptocurrencies is that they can act as a balancing asset to cash. Since cash can depreciate with inflation, it’s hard to predict the value of a cryptocurrency, and it’s hard to know how it will affect your financial situation in the future.

The most popular cryptos include bitcoin, ethereum, and ether. This type of currency allows you to transfer value from one person to another. A bitcoin, for example, can be used to send money and make payments. However, it is still not the same as a bank or a credit card. It may be more expensive, but the convenience and speed is worth the extra effort. But, it’s also much easier to store and transfer than cash.

Crypto is a peer-to-peer electronic currency. Its value cannot be manipulated by any central authority. Because of this, it’s not easily counterfeited. As a result, it’s a safer option than fiat currency. For example, some companies use crypto to pay important clients and vendors. Aside from a secure online transaction, a cryptocurrency also serves as a balancing asset against cash. Although cash can depreciate due to inflation, it’s an investable asset and therefore offers greater security.

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