The economic crisis of 2008 showed us that traditional banking systems are flawed. The flaws of the traditional system were re-confirmed in 2020 when COVID crippled global economics. More and more people are seeing the need for viable alternatives to the conventional banking systems. Crypto offers that alternative — a secure, decentralized form of banking, that takes governments and banks out of the equation.
A cryptocurrency is a digital or
virtual currency
that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Since digital currency is decentralized, every transaction is stored in blocks of computers known as blockchain technology.
Blockchain technology infrastructure
is used to overcome the financial challenges presented by the established banking system. The concept of investing in cryptocurrency has exponentially increased. According to financial experts, cryptocurrency is here to stay. Research shows the following are
reasons
for potential increases in crypto investments:
According to
Germany’s Deutsche Bank’s “Imagine 2030” report, the traditional money system is fragile. The report projects that by 2030, over 200 million people will be using digital money. Furthermore, it suggests that the traditional money will already be on the way out.
Crypto also protects from inflation. The problem with traditional money is that it’s always going down in value. This isn’t by accident. Governments and central banks are intentional about this, especially during financial crisis years like 2008, and 2020. During times of financial crisis there’s a shortage of money. Governments try to get around it by just printing more. In fact,
22% of all dollars that exist today were created in 2020,
when the Federal Reserve injected $2 trillion into the economy. Making money appear out of thin air sounds good, until you figure out the catch. There may be more printed money, but the amount of goods and services stays the same. The value of money goes down compared with the value of the goods and services, resulting in inflation.
When there’s an economic crisis, Crypto currencies, just like precious metals, don’t get created by a magic wand. They do not offer a short-term fix to financial problems and as such Crypto holds its value and appears to be inflation- proof. This is why Crypto has increased in value and may likely continue to increase in value through the remainder of 2021.
Tickers to consider: AAU.V, SSVR.V, BYOC, CEI, CURR, FRSX, JAGX, GBS, PPCB & TZA.
Copyright © 2022 SylvaCap, All Rights Reserved. - Privacy Policy - Disclaimer