Until recently, gold, silver, etc. were widespread storage media. Several people trusted metal more than a coin such as the euro or the dollar because the metals are in finite quantities. Because of this, they will hardly lose their value, unlike fiat coins that are "printed" at will and have no effect.
Problems with gold and metals in general are multiple:
It is difficult to store. If we keep gold, we also need a place to store them safely.
It's not easy to exchange. In our times it is impossible to pay gold for our transactions and let alone when transactions are made electronically.
Cryptocurrencies, other than trading systems, enable us to store value in them. And indeed a value that we can exchange at any time, which is unprecedented for those who are accustomed to the idea of precious metals. Cryptocurrencies share some of the positive characteristics of metals, but they do not have their negatives. Specifically:
Each coin has (usually) a certain number of total currencies to be created.
The production of coins is done in a predetermined way and not at will as in fiat coins.
The value we store in a coin is directly "exchangeable" and even Online.
They can be divided into multiple subdivisions (typically 8 decimal places or more).
It is extremely simple to store them.
Their storage can (and must) be password protected.
We can have security copies.
These reasons make encryption tempting to store value in them. Moreover, because their value is determined solely by the law of supply and demand, the more people will discover their strengths, the more demand and hence their value grow.
The above are the characteristics that an investor wants from his investment. That's why they've seen a number of articles who predict that Bitcoin's value will increase geometrically over the next few years. But the increase in Bitcoin's value is not the only reason investors are turning to it. Another reason for choosing it is to offset losses from traditional investments.
It is clear that cryptocurrencies can and are already used for investment purposes, as long as we adhere to some very basic rules.
We never invest more than we can to lose
We have to work with a plan, not impulsively, or to follow the crowd
Feeling is the worst enemy of an investor
We are informed from many different sources before investing
If something looks too good to be true, we look for it even more
We always control our encryption - We never leave large amounts in bureaus or third-party services
We take care of the security of our computing systems
We keep a password file as well as notes
Backup - Backup - Backup and ... Backup!
By following these tips, I believe that whoever uses a cryptocurrency as an investment, will have a win win situation.
