In recent time, the world has witnessed a radical shift from the traditional means of payment using paper currencies to the modern usage of digital wallets, using digital coins. While there are several reservations about its usage, due to its assumed complexities and security challenges, it is becoming crystal clear that the future is crypto.
There have been issues of mistrust about the operations of crypto from governments and financial institutions. These issues stem from lack of conviction over safety in using crypto currencies. Many believe that it would be easier to fund terrorist activities using these digital assets. However, these concerns have not hold sway considering reports that cybercriminals only represent 1% of all crypto transactions.
In a research carried out by Nairametrics, it reported that crypto-currency will be an effective tool for financial inclusion in the next couple of years. There has been an upsurge in crypto currencies as we now have Bitcoin Cash, Litecoin, and Ripple among few others. Even Facebook is not left behind as it has now developed its own currency, which is called Libra.
Do I then invest in crypto? Of course, you might but there are things you need to know about its operations. First, you have to be aware of the volatility of crypto. That is, it actually goes through a whole lot of ups and downs; hence, it’s a risky move. Again, the mode of operation is still not perfectly known as only a few people are well versed in its operations. More so, the rate of return on investment is not readily known as it has no regulatory standards. All of these should of course be a concern to any investor.
However, despite all of these challenges that face investing in cryptocurrencies, there are still a lot of positives it offer. There have been favorable forecasts in support of its usage, especially after Covid-19. This is also backed up by its high liquidity rate, accessibility and the mind blowing returns. More so, many governments are starting to take softer stance on the use of crypto with several organizations such as Microsoft and Virgin Galactic, now accepting payments in crypto.
Could this be a sign of what’s to come in the financial world? Only time can tell!
