Hey everyone! Yesterday I posted some questions about crypto that I constantly get asked and one that I didn't mention is probably one of the most important questions that I ever have to answer: "Why is crypto a good opportunity?"
My answer to this is as follows and really takes the question of "why is crypto a good opportunity" and spins it into a question of why it's the greatest opportunity of our time.
Let's start with a few of the most important fundamental technologies and philosophies that govern crypto (in my opinion):
- Decentralization of power, money, influence...
- Efficient Processes
- Reliability
- Network Effects
1). The Decentralization of Power, Money and Influence
One of the most attractive parts of cryptocurrency, in my opinion, is the re-distribution of wealth and power that it brings to our society... Many cryptos (like STEEM! - our favorite crypto) have the incredible capacity to actually distribute wealth to the little guys (that's you and me!).
If you take Steem as an example, we're re-distributing money in the form of STEEM and SBD back to each other by using the network and growing it and then receiving payout rewards for doing so. Rather than line the pockets of huge corporations and investors like Facebook, we can actually line our own pockets by making the world a better place and growing the Steem ecosystem.
Following on this Steem example, look at how the ecosystem is governed. It's governed by us!! It's "citizens". Rather than have Facebook execs and governments deciding what we say and what powers we have, we can actually vote on witnesses who have the same passions and ideas as we do. We can decide what this blockchain evolves into, we can decide what to change and what not to.
2). Efficient Processes
There's a lot of beneficial aspects to cryptocurrencies and blockchain applications. Efficiency is definitely one of them. Crypto's tend to perform the same functions as major institutions and companies while processing those functions much faster and much more reliably.
Take banking for example, while there are some kinks and caveats to storing money in crypto (volatility, exchange risk, etc.), there are a lot of benefits to storing and transacting cryptocurrency.
- You don't have to wait for long banking times and business hours
- You (usually) don't have to pay enormous fees for regular transactions
- You don't have to rely on someone else to hold your money for you
- Rather than lose money to inflation each year, you can actually earn money through staking and other benefits
3). Reliability
Cryptocurrencies are some of the most reliable networks currently available. The blockchain (and similar technologies) provide us an immutable and decentralized storage facility for information, contracts, transactions and much more!
4). Network Effects
The network effect refers to the ability and requirement of a network to grow by having its user base grow. Without a growing and large user base, many networks (like twitter, facebook, Steemit, Ark, etc..) are useless and not valuable.
The network effect is extremely relevant to the growth of cryptocurrencies. Without usage, these platforms will not be worth anything. On the other hand, as usage increases exponentially, so will the value of the network and as the value of the network increases exponentially so will the attraction of new users... And so goes the cycle of how multi-billion dollar networks are formed.
So those are my reasons why crypto is the greatest opportunity of our time. I don't just talk about it, I live it. My friends ask me how confident I am in crypto and I respond by saying, "I'm confident enough to hold about 40% of my net worth in a variety of crypto's."
Disclaimer: Nothing said here is to be taken as financial advice. This is purely my opinion and is for entertainment purposes only. Do your own research and never invest more than you are willing to lose.
Here's the Question of The Day, don't forget to post your answers in the comments!
Do You Believe Crypto is the Greatest Opportunity of Our Time? Why or Why Not?
Thanks for reading! Don't forget to leave your thoughts below and I look forward to seeing you in the comments!
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