Why have cryptocurrencies become so popular?
The cryptocurrency phenomenon knows no bounds, whatever the media or the place, we hear about it.
Where a few years ago it was a topic talked about by a few fanatics or enthusiasts, nowadays nobody is left out: Politicians, Sportsmen, Celebrities, Business Leaders… but not only in these environments Crypto is talked about, we can hear about it in bars, public transport, homes and gyms. Cryptocurrencies, web3 and blockchain technology are here to stay and are gaining more and more supporters.
The uses of cryptocurrencies today are very diverse: Transactions, payments, savings, investment, betting & gambling.
Now there are more than 20.000 different cryptocurrencies. Crypto money has many fans for a variety of reasons, and those are the points we are going to review.
Cryptocurrencies’ decentralised nature due to blockchain technology is appealing to many. It’s no longer only central banks linked to governments controlling money creation and flow. With cryptocurrencies, money creation and flow are democratised and maintained by users who can be anybody in theory.
With cryptocurrencies, any transaction is recorded on the blockchain, and the information — without identifying markers- is accessible to all users. This means that fraudulent records are nearly impossible.
Assuming you have a computer or smartphone and an internet connection, everyone can set up a crypto wallet in minutes. This is a much faster process than setting up a traditional bank account.
The use of crypto money is pseudonymous. Your wallet is your identifier on the blockchain, but it doesn’t hold any specific information about you. This means there is a certain level of privacy when using cryptocurrencies.
Protected from inflation:
Bitcoin and other cryptocurrencies have a cap on the total number of coins that can be created. With traditional currencies, central banks can print additional money and increase the money supply, leading to inflation. As there is a cap on some cryptocurrencies, the value is set to increase, assuming demand will increase, which is very likely.
Potential for wealth creation:
Cryptocurrencies tend to be highly volatile and can rapidly fall or increase in value compared to traditional currencies such as euros, dollars, or pounds. Volatility entails risk but also the opportunity for high rewards, which can be very attractive to some investors.
All these points represent the reason why companies involved in blockchain technology must work to simplify processes and knowledge, to achieve mass acceptance and to remove existing barriers.
Read more about Crypto Snack’s role in this mission on our white paper.