Invest simply because it is growing. With the advent of the Internet, many people have started earning incredible amounts of money, based on one simple thing - the Network Effect.
Before finally making up your mind to invest into the crypto economy, you seek for answers to many of your questions. But, the very first thing you want to know is why should you even need to invest your hard-earned money in cryptocurrency?
Why to invest?
Invest simply because it is growing. With the advent of the Internet, many people have started earning incredible amounts of money, based on one simple thing - the Network Effect. An engineer Robert Metcalfe in 70s invented what is now known as the Ethernet. He began selling network cards so as to make a profit. To make people understand why computers needed to connect to the network, he told that the network's value is proportional to the square of the number of users in this network.
To understand this idea, suppose if you purchase 10 computers without a network card, their conditional costs will be equal to 10. On the other hand, with network cards, the conditional costs of 10 computers will increase to 45 which means 4.5 times more profitable. Today, it is applied to social networks like Facebook, Twitter, Skype, etc. Thus, the law turned out to be successful and resulted in millions of Ethernet grids which evolved into what we now call the Internet.
To make it clearer, if the number of network users is gradually growing, your investments are expected to grow with it. It works like this:
Look for a network which is growing at the very beginning => put money => wait => profit!
The same thing we talked about above is applicable for Bitcoin as it's the same network and is growing rapidly. The best investment opportunity since the start of the Internet is the investment in the blockchain. In view of the fact that the Bitcoin network is not controlled by any Government or institution, there is a high probability that the bulk of connected people and machines will use this network. What makes it so desirable include its following traits:
- No taxes
- A complete history of all transactions No fear of accounts getting blocked
- Low transaction fees
- Free opening of accounts
- Transparent clearing
- The transaction cannot be undone
- No one can write off your money
- Suitable for all forms of property, not just currency
- Provides privacy and anonymity as it does not ask for the personal identification information
Invest to hedge risks
Investments in the blockchain can be seen as a protection from the deception of Governments and Central banks. In 3 ways you are getting cheated under the present economic scenario:
- The government in the form of taxes openly steals your money.
- Inflation caused by the "printing press" dilutes the value of the currency.
- Any of your assets at any time may not be yours as banks may go bankrupt. The state does not guarantee the safety of your money.
People simply assume that there is no alternative. However, an alternative to the current outdated system, Bitcoin is already here. Now, as we know that rapidly growing blockchain is an amazing technology, still there is no 100% assurance that you will be able to make a profit. Thus, some essential steps must be followed to raise the probability of a profitable outcome.
Disclaimer: This is not an investment advice. It is of paramount importance that everyone should do his or her own due diligence before investing in any product, platform, tokens etc. Cryptocentral.io does not endorse any content or product published on this page. Our aim is to simply provide all the readers with the latest information in the field of cryptocurrency / blockchain industry that might be of interest to our readers.