Australia has been a hotbed for cryptocurrency activity in recent months. According to a recent study, 25% of Australians own crypto.
It is likely because almost 1 in 5 people own some cryptocurrency in Australia. If you’re on the fence about investing in cryptocurrency, here are six reasons why you should start today.
1. Increased Security And Privacy When Compared To Traditional Forms Of Currency
If you are looking for a more secure and private way to store and transact your money, cryptocurrency is a good option. Unlike traditional fiat currencies, which central banks regulate, cryptocurrencies are decentralized and not subject to government control.
It means that your transactions are more secure and private. For example, when you make a transaction with Bitcoin, it is recorded on a public ledger, but your personal information is not attached to the transaction.
2. Easily Transferable
An essential aspect of any investment is how easy it is to transfer or convert into cash. You should not be stuck with an asset you can’t sell when you need the money. Cryptocurrencies are very liquid, meaning they can be easily bought and sold on cryptocurrency exchanges.
It makes them much more accessible than other assets such as property or fine art, which can be difficult and expensive to sell. Cryptocurrencies are also becoming more widely accepted as a form of payment, so you may be able to use them to buy goods and services. Reports say that 25% of Australians own crypto. It is becoming especially true as more businesses are adopting blockchain technology.
3. Decentralized Control And Governance
Decentralization means that there is no central authority governing cryptocurrency. Instead, it is a network of computers that work together to process transactions. Decentralization has several advantages.
First, it makes cryptocurrency more resistant to manipulation and censorship by governments or other central authorities. Second, it allows people to use cryptocurrency even if they live in countries where the government has banned it.
Finally, decentralization makes the network more secure because hackers can target no single point of failure.
4. Reduced Risk Of Inflation Or Deflation
Inflation can happen when the cost of living goes up, but it can also happen when the value of money decreases. For example, if the government prints more money, it causes inflation because each dollar is worthless. On the other hand, deflation occurs when the prices of goods and services go down.
While inflation and deflation can impact your investments, cryptocurrency is not subject to these same forces. Cryptocurrency is a finite resource, which means that there is a set amount of it in the world. It makes it immune to inflation because there is no way to print more.
Additionally, cryptocurrency can be used to hedge against deflation risks. For example, if the price of gold decreases, the price of Bitcoin often goes up.
5. Higher Potential Returns Than Traditional Investments
Those who got in early on Bitcoin and other major cryptocurrencies have seen incredible returns. In Australia, 17.7 percent of the population owns crypto.
For example, those who invested just $100 into Bitcoin in 2010 would now be sitting on over $28 million. And while it’s unlikely that you’ll see such returns from investing in cryptocurrency today, there is still potential for high returns.
6. Potential For Use In Cross-Border Transactions
Another potential benefit of cryptocurrency is its use in cross-border transactions. Currently, when sending money overseas, there can be a lot of fees and delays involved.
However, these fees and delays could be reduced or eliminated with cryptocurrency. It would make sending money to loved ones who live in other countries much easier and faster.
Whether you’re a seasoned investor or new to the game, there are plenty of reasons to start investing in cryptocurrency. With a thriving ecosystem and a supportive community, now is the time to get involved in this exciting industry.