The first thing that you should know about cryptocurrencies is that they’re decentralised. Any single entity does not control them, and their security is based on the distributed ledger technology known as the blockchain.
It means two things:
- There’s no central authority figure dictating how things should work (like a government or bank).
- Their security relies on the fact that the network of users holds copies of the distributed ledger rather than having it held by a central location.
This is what allows NZ cryptocurrencies to operate without being censored and why they’re heralded as secure.
Take a look at some compelling reasons to invest in cryptocurrencies in NY.
1. Cryptocurrencies are Not Affiliated With Any Government
Most governments around the world are not fans of cryptocurrency. However, it cannot be denied that governments worldwide have different stances on how they regulate and tax their citizens’ collectible assets.
When you invest in cryptocurrencies, your wallet is not tied to any personal information. Therefore, someone can’t have financial gain by invading your privacy or finding out specifically how much you own. It makes cryptocurrency attractive to citizens of countries with high taxes or rampant political corruption (I’m looking at you, Zimbabwe).
2. Cryptocurrencies are Easier to Obtain Than Most Other Assets
There was a time when you’d have to be an elite class to get your hands on the kinds of assets that would give you enough liquidity to create passive income. There were only so many stocks and bonds available for regular people, and not everyone could afford them due to their high prices.
Cryptocurrencies are different because anyone can buy them, no matter how much money they make or where they live in the world. You don’t have to be an international trader or a computer expert to start investing in cryptocurrencies.
3. Many Cryptocurrencies Have Already Had Successful ICOs
When it comes to NZ cryptocurrencies, the ICO is where the action starts. It is how many of them get funded and distributed to their users. It’s essentially like an IPO (Initial Public Offering), except in digital form instead of physical shares you can hold in your hand.
The key here is that many different types of cryptocurrencies have already done extremely well with their ICOs. It is more likely that you’ll see an increase in value (and thus, profit) as the cryptocurrency’s user base grows.
4. Blockchain Technology is Continuing to Grow
According to Garth Howat of The Motley Fool, blockchain technology will hit $7.6 billion by 2022. You can also expect to see blockchain technology in more industries than you might think, including supply chain management, real estate, and healthcare.
The reason for this is that it’s a censorship-resistant system of transactions. It means that people who need to conduct business quickly and cheaply will continue to turn towards cryptocurrency as a way to do so without being bogged down by regulations and other financial costs.
5. Cryptocurrencies Have a Variety of Utility
The cryptocurrency market is still growing, so there are many opportunities to use crypto for different purposes. Some people might view them as assets to invest in, just like stocks or bonds, but they can also be used to purchase goods or services online.
In fact, you can even use them to help people in need. Many charities have been set up to accept cryptocurrency donations, and some of these charitable organisations have managed to collect hundreds of thousands of dollars worth of cryptocurrency donations from grateful users around the world.
6. Cryptocurrencies are Much More Accessible than a Few Years Ago
When it comes to investing in cryptocurrencies in NZ, there was a time when you’d have to be extremely computer literate and know almost everything about blockchain technology just to get started. Nowadays, cryptocurrency wallets come pre-loaded with features that make it easier for everyone, from the newest beginner investor to the expert trader.
7. Cryptocurrencies Offer You a Greater Range of Investment Options
You probably aren’t going to become a millionaire overnight by investing in cryptocurrencies. That might sound obvious, but it’s the unfortunate truth that many people don’t want to hear and then end up disappointed when they find out their investment hasn’t grown enough in a few days or weeks.
However, you can still make a lot of money investing in NZ cryptocurrencies if you do it the right way. Start small by purchasing one or two different types of cryptocurrency and see how they perform before opening up your investment to others.