Cryptocurrencies allow you to instantly and almost free of charge transfer large sums of money over any distance. It also can be used in online casino gambling, TonyBet live betting, and more fields. However, cheap, fast and secure transactions anywhere in the world are not the only advantage of digital money.
What superpower does cryptocurrency have compared to regular money?
Let’s start with the deflationary nature of digital money. This means that, unlike any national currency, which is issued on an unlimited scale, cryptocurrency is protected from inflation (although this does not apply to all coins, but only to those that initially have a limited emission).
Moreover, it is expected that over time, the supply of many coins will decrease, and the demand will increase, which will provoke a rise in value.
Another superpower of cryptocurrency is its use as a defensive asset during economic crises. During such periods, people tend to lose confidence in traditional assets and look for an alternative way to save their savings. Cryptocurrencies that are less prone to inflation look like a great investment option.
Thus, digital money has certain advantages over fiat money, namely:
- Decentralization;
- Open source code (for some projects);
- Transparency of transactions;
- Cheap transactions (the cost of a transaction depends on the network congestion and may vary);
- The role of a protective asset in the event of economic crises.
But why is it said that investing in cryptocurrency is a risk? Let’s deal with the question:
- The fact is that the cryptocurrency market is extremely volatile. That is, the asset rate is constantly changing, which makes it difficult to predict the market sentiment and make predictions about the coin rate. On the other hand, high volatility plays into the hands of speculators, because they make money precisely due to exchange rate fluctuations.
- The decentralized nature of digital money is a definite plus. Nobody regulates the issue of cryptocurrency and does not control the movement of funds on the account. But the flip side of the coin is the lack of any protection.
- There are a lot of scammers on the network who, in search of quick and easy money, come to the crypto market and hack exchanges and other services. Cryptocurrencies can also be used by cybercriminals to purchase illegal substances or launder criminally obtained money.