Crypto currency is one of those sector which probably has received much more controversies compared to any other finance sector. Yes, fingers have been pointed about its use case, security and technology behind it also there has been misuse of this technology but come to think of it the usual finance system has much more loopholes than there is on crypto. History has provided evidence towards this countless times.
FACTS
How about we lay out some scenarios from the last 10 years. Two people would be chosen during the year 2012. Both will be given $10k To invest in anywhere they want. The time frame will be for 10 years. The only condition here would be, they can not touch that amount for this whole period while the investment is made. After 10 years what would be the outcome?
1st person
While during that period Banking sector was probably the safest bet. And since we want to see the usual monetary value vs crypto lets take the best possible way for this investment.
So this person deposits the $10k for yearly interest. For how much percentage that is a fact. Now putting all things aside lets see the chart below and decide which suits the best. I am not sure how usually bank provides the interest rates. But assuming with low to high level yearly rates, I came up with this chart. Assuming that with 10% yearly rates for a period of 10 years $10k investment would bring approx $25k plus, after its maturity.
Image source
Now this is quite interesting. Because there are plenty of issues that needs to discussed for this outcome. For starters, as for positive side the money invested in banks are considered safe. So now worries or whatsoever is involved and even after that it is no task job. Which I mean is, you are literally getting the interest without even doing anything. So lazy money is printing lazy dollars. I would have preferred that but due to several reasons I do not like this way even though there is assurance and security behind this process.
Now here, arrives INFLATION! For different countries the inflation rate differs from one another. But lets set it around 5-6% every year. Now considering that fact, the $10k would loose its value by almost 50% due to inflation after 10 years. And lets say the sum comes out 25K after 10 years the value would be half of it, due to the inflation. So, in easy words whatever I will get after 10 years the value of those $ would be already reduced to half. So a very nice investment made even though it was considered to be safe.
2nd person
In 2011 he saw this new technology called blockchain. And Bitcoin is a coin which in embedded into this technology. He saw the potential behind it and did his research and eventually invested the $10K into Bitcoin. The price of BTC was roughly around $100 (according to the data, just approx idea). He would have got 100 Bitcoins (a rough estimate). He does not touch them and as of today the value of those 100 Bitcoins comes to around
100 * $19,900 = $1,990,000
A mahossive growth of almost 20 thousand times from the initial investment. Which one can be considered a retirement fund. I leave that to you to answer in the comment section below.
There are plenty of If's and But's regarding this monetary system. First of all people are afraid of changes. We have grown up with the usual monetary system and it is holding us back to see the change which is about to come in the next 100 years. Digital currency will replace paper currency and it is already happening. Silver coins, gold coins, paper money, bonds and now crypto is here. Adoption happened in the history for monetary systems. Yes, crypto can not be regulated or be under any governments authority. That's the beauty of decentralization.
Where do you see yourself in 10 years?
A typical interview question that we may have faced in an interview. The only reason I am repeating this is because when the .com bubble took place people were not able to see what was actually happening. But this time it is different. Because the world is at our palms right now. Even after getting this much facility if you are not using them than I rest my case my friend.
Yes, there are casualties. There are dumps and various ponzi schemes which made crypto tremble in several occasions. We can not blame crypto for that. Just for an example in real estate when you buy a property, you go through all the details of the property. Who owned it before? What is the current situation of that property? Are there any debts in the name of this property? Is the neighborhood good? And so many other things which you run through. After getting fully satisfied than and only than you go for buying that property. If you can go through all these hassle for buying a property than why can not you DYOR before investing in crypto? Why don't you keep on asking questions before buying any crypto? Why don't you scour the internet until you get satisfied from the internet? Do that! Be vigilant and protect your money. Do not just dump your money by following any youtubers or any of your friends ideas. As crypto might get to suffer coz of the dump but eventually it always comes back to create history in ATH ;)
Just Do Your God damn OWN Research. And I suppose after 10 years from now, we might be able to see and probably chat about our 10 years experience in Crypto! I am wondering how that will be?
Best regards
Rehan
