Cryptocurrencies—especially Bitcoin—are making headlines left and right: all-time highs and record prices. More and more people are considering getting into crypto. But cryptocurrencies and their current prices often raise a big question mark: traditional money is simply more tangible. Just reach into your wallet and you’ve got a few coins or bills in your hand: it’s that simple! But don’t be afraid of crypto—it’s worth it to start learning about cryptocurrency now. Pigto from the Vitalize Crew will show you three exciting reasons to get into crypto!
Reason #1: Deflationary and decentralized
Let’s stick with the traditional money in your wallet for a moment. Whether it’s euros, dollars, or maybe even a few coins or bills from your last vacation, they all have something in common. No matter what these currencies are called, they’re centrally controlled. This means there’s a central authority (usually a central bank) that exercises control over the currency and the associated monetary policy. These specific banks therefore also have the sole right to print money and put it into circulation in their countries or currency zones (such as the Eurozone).
And depending on policy, the printing presses can really heat up. In other words, these banks increase the money supply. The result: high inflation with rising prices. Cryptocurrencies like Bitcoin work differently: They are decentralized and therefore deflationary. Why?
Centralized control of Bitcoin? Impossible!
It’s simple: They’re decentralized because the underlying technology of Bitcoin and similarly functioning cryptocurrencies is the blockchain. Put simply, the blockchain is a network of many independent computers. It’s impossible to control them all. That’s why cryptocurrencies are decentralized.
Furthermore, the money supply of cryptocurrencies like Bitcoin is technically limited. In the case of Bitcoin, this supply is capped at a maximum of 21 million Bitcoins. As you can see, unlike with printing money, it’s also technically impossible for an infinite supply of Bitcoin to exist. This technical limit ensures that Bitcoin has a deflationary effect and that no single entity can control it. Inflation-related losses in the value of money are therefore highly unlikely.
Want to buy your first coin? Want to try it out for yourself? We’ve put together a handy overview of everything you need to get started in the crypto market and the world of cryptocurrencies!
Reason #2: Don’t Be Afraid of Crypto—Discover a New Technology
We already mentioned it in the previous section: But in addition to the prospect of an interesting asset class and a hopefully rewarding investment, the technology behind cryptocurrencies is no less fascinating: the blockchain!
In short: Blockchain technology isn’t just relevant to cryptocurrencies and the NFT market. That’s because it enables secure, transparent, and—above all—immutable transactions. In addition to decentralized finance, current areas where blockchain is being used include smart contracts in the energy sector and its application in supply chain management.
Traditional trading is a thing of the past; blockchain enables peer-to-peer transactions
Furthermore, blockchain technology has the potential to transform even more industries. In the area of data protection, blockchain gives users greater control over their personal data, while business models that previously required an intermediary now enable direct peer-to-peer transactions via blockchain (for example, when trading stocks on exchanges). As mentioned, blockchain is a key technology not just for crypto and related fields, and who knows in which other industries we’ll see it used in the future.
Reason #3: Don’t Be Afraid of Crypto – A Strong Community
Too late for Bitcoin? Read here on the Vitalize Cryptoblog to find out how you can still get in on the action even with Bitcoin’s high price!
Social media—especially Instagram—is a great place to discover new things, particularly regarding the aforementioned blockchain. Blockchain technology can be used to create so much more, as NFTs prove, and you’ll find many amazing NFT artists on Instagram in particular.
Stay on top of everything with support from the crypto community
The crypto community also offers a platform for sharing knowledge and experiences, just like here with our Vitalize Crew. Many investors and crypto enthusiasts share their analyses, trading strategies, and comments on current market developments. This valuable input helps newcomers better understand the volatility and risks of the crypto market.
In addition to blogs, there are other media outlets, such as podcasts and YouTube channels, that offer content on cryptocurrencies and blockchain technology. A strong community provides a wealth of content, including market overviews, the latest chart analysis, and interviews with experts who can shed light on price trends for Bitcoin, altcoins, and stablecoins.
And it’s just plain fun! With a great community, no one has to go it alone, and you’ll always have immediate support for any questions or problems that sometimes come with getting started. Remember: there’s no perfect time to get into crypto. The perfect time is now (and who knows what a new president in the White House has in store for the crypto world)! So get started and don’t be afraid of crypto!
