Is cryptocurrency the future of money? The belief in the blockchain has a direct effect on the future of crypto currency. If you believe in Blockchain and its use cases then you can decide for yourself what is the future of crypto currency but keep these factors in your mind.
In may Coinbase told their users that if they go bankrupt their crypto will be gone, but why would you warn your users about a potential bankruptcy if you’re not worried about bankruptcy?
Well, a few weeks later, the cryptocurrency exchange Celsius stopped paying out your cryptocurrency because they lacked the funds to do so. After literally locking up billions of dollars worth of cryptocurrency, Binance immediately started allowing withdrawals of bitcoin, but fortunately, they quickly unlocked that, but then coin flex also froze the withdrawals of their cryptocurrency and then fin blocks froze your cryptocurrency, and then voyager frozen cryptocurrency and then things really got bad because voyager was the first to declare bankruptcy, which essentially means that your cryptocurrency is lost, and to top it all off, Celsius was sued after claims that it was a pyramid scheme and a fraud were made.
Is cryptocurrency’s future in doubt now?
If you don’t believe in cryptocurrency, you don’t believe that crypto has value, you don’t believe in the future of crypto currency then the answer is simple stay away from crypto don’t touch crypto don’t worry about crypto because you don’t believe it. However, if you believe in the value that cryptocurrency provides. If you believe in blockchain technology. If you believe there’s a use case for crypto now or in the future well then this can create an opportunity for you. However, to decide the future of crypto currency you have to understand the difference between cryptocurrency and crypto exchanges.
I’ve been talking about this for a long time now but I’m more worried about the crypto exchanges because the crypto exchanges are tech companies they’re tech companies that were fueled by this tech boom bubble that we saw in 2020 and 2021. Many of them relied on the price of crypto to go out and raise more money. So in crypto prices fall and many of these companies thought the crypto prices would never fall, but if crypto prices fall then the health of these crypto exchanges would be in jeopardy and that’s exactly what we’re seeing happen now. This is why so many exchanges are running out of money. They don’t have the ability to fund crypto withdrawals and some of them now are filing for bankruptcy. If your crypto exchange files bankruptcy with their cryptocurrency on it and they go under well you can pretty much kiss your cryptocurrency goodbye.
If you are one of the people that believe in cryptocurrency and you want to buy cryptocurrency that’s fine but then you never want to store your cryptocurrency in a cryptocurrency exchange, because the cryptocurrency exchange is a cryptocurrency exchange it’s not a cryptocurrency wallet.
Related: How does a crypto wallet work? | Crypto Wallet Explained
Future of Crypto currency, So if your crypto is in the hands of the exchange it’s not your crypto it’s in the hands of the exchange and it’s at the mercy of the exchange. So if something bad happens to the exchange you can lose your crypto which is why if you are investing in crypto you need to get a crypto wallet.
The best thing that you can do is get a cold wallet which is a USB drive, where you take a cryptocurrency off the internet you put it in a USB drive that way now even if your exchange goes bankrupt even if it goes under even if they stop all withdrawals you’re okay because you have no cryptocurrency on that exchange you can just open up an account with a different exchange and do your transactions there. So use an exchange as a place to do transactions out of place to keep your cryptocurrency. If you don’t want to keep your money or cryptocurrency in a USB drive in a cold wallet at the very least have a hot wallet that way your cryptocurrency is not in the hands of an exchange.
Now if you are looking for a good cryptocurrency exchange, especially in this market you can check out cryptocurrency exchanges that are well known so choose wisely.
Related: Centralized vs Decentralized Exchanges | Best Exchange?
What is the Future of crypto currency? My goal is not to tell you to believe in crypto or to not believe in crypto. My goal is for you to make a decision that way you can make smarter decisions with your money and you can decide for yourself about the future of crypto currency, because if you believe in cryptocurrency well when crypto prices crash because people are worried about losing the crypto because they didn’t understand how cryptocurrency worked or how exchanges worked that causes fear. It causes panic, it causes people to sell the crypto. It causes more panic which causes more people to sell the crypto and that can create a buying opportunity.
However, you have to believe in the value that cryptocurrency has and you have to believe in the long-term value. Now, of course, it is speculative, it’s a risky cryptocurrency, unlike real estate, unlike stocks, and unlike businesses has not proven the test of time. So cryptocurrency is much more speculative however if it does work it can create a great buying opportunity for you. It’s high risk high potential reward, but there also has to be some justification for the belief that you have with cryptocurrency because if you just believe in the value of crypto because you hope that it’s gonna make the regular person rich.
Well, that doesn’t actually have any actual use or value or reason for your belief, because if you just believe that hey it’s a coin with a dog on it or it’s a coin with a cat on it and I own some of it so I believe in it because I want to get rich with it there’s no actual use there.
I see the value of crypto because I use cryptocurrency. I have contractors that work for me and my companies some of them live overseas and it’s difficult for me to send them money. They don’t allow PayPal in their countries other software like transfers are very difficult to use and I can send them a wire but then I have to go to the bank or have to call up the bank I have to pay the wire fees it’s a long process. It’s an expensive process but the alternative is I can just go to a cryptocurrency a stablecoin send them some crypto that takes me like 15 seconds and it cost me a tenth if not a 15th or 20th of what it would cost me if I had to go and actually wire the money. So I pay people some contractors that I’ve hired through cryptocurrency and I see how it has reduced the friction, how it’s reduced the time, and has also reduced the fees by sending money through cryptocurrency.
The second aspect that I’m excited about for cryptocurrency is not just on the currency side but more on the technology side because while cryptocurrency started off as a way to do transactions it’s evolving into software technology the blockchain. It’s what can you do with this technology that you can’t do with the current state of the internet.
Future of Crypto currency, This is the technology that I’m really excited about because you can do things like smart contracts meaning it is a digital contract where if the other party of your contract does what they’re supposed to do they automatically receive the other end of the contract. If they don’t do the end of the contract they don’t receive the other end of the contract.
So you can do a lot of technology cool things with cryptocurrency that you can’t do with a lot of the other technologies out there. So the idea with the blockchain is it can revolutionize the way that we use the internet. Now, of course, it is risky, that’s why you have to understand how cryptocurrency plays a part in your portfolio because there’s a chance that something else comes and wipes away cryptocurrency and so you have to understand that hey it is speculative, it is risky.
How does it play a part in your portfolio?
Future of Crypto currency, now I believe in cryptocurrency. However, it is not my entire portfolio it is not the largest investment in my portfolio it’s a small piece of my portfolio. I invest in five things. I invest my money in my own business and startups. I also invested in real estate physical real estate rental properties invest in stocks and then I invest cryptocurrency and then I invest in physical gold. These are my largest investments in this order business my business startups real estate stocks crypto and then physical gold. Even within the cryptocurrency, I’m not investing in all the meme coins and all those alternative smaller coins I’m investing in the larger bitcoin Ethereum and a couple of the smaller coins but again the things that I believe and actually have used that I believe will have long-term value.
If the worst case happens and all of the cryptocurrency goes to zero well I’m not going to be affected that bad because it’s a smaller piece of my portfolio, it’s not the largest piece of my portfolio or the second largest or the third largest. It’s a smaller piece of my portfolio because it’s on the speculative side however if it does work out I will still get my piece of the upside because I think it’s exciting. I like the upside, I’m more of a fundamental investor with my bigger investments and like to have some fun with more of my speculative investments.
As a speculative investment, you now have to understand that cryptocurrency is going to be hit especially hard when you see more volatility when you see more hurt in the economy when you see more hurt in the markets because it’s the most speculative. So when things go wrong and people panic and people want a safer investment. The first thing that they sell is speculative investments. The things that are not producing cash flow the things are that are not sure bets.
So that’s why you see cryptocurrency get hit especially hard and this is where now again going back to what I said at the beginning of this article. Let’s tie it all together you have to start by understanding where you lie. If you don’t believe in crypto don’t worry about it don’t touch it don’t buy it you shouldn’t be even concerned about what’s going on with cryptocurrency but if you believe in it and you want to be your owner of it and you understand that it’ll fit in your portfolio well then that could create an opportunity for you to come in and buy.
Read: What is cryptocurrency?
Because if you want to own an asset the best time to buy that asset assuming is a good asset is when prices are cheap and this is where now you want to make that decision before it comes down to the emotional times where everyone’s panicking, everyone’s freaking out you want to make that decision beforehand that way when you see a good price point well that can create an opportunity for you to buy assuming you fall into this camp. I hope after reading the complete article you can decide for yourself about the future of Crypto currency
