May 10

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Cryptocurrency: The New Economic Force?

By Richard Weberg

May 10, 2022


2021 Was A Big Year For Cryptocurrency

We’ve seen Bitcoin hit numerous new all-time high prices over the past year — followed by huge drops — and more institutional buy-in from major companies. Ethereum, the second-biggest cryptocurrency, notched its own new all-time high late last year as well.

U.S. government officials and the Biden administration have gradually expressed interest in new regulations for cryptocurrency.

Meanwhile, people’s interest in crypto has escalated: it’s a big fuss not only among investors but in popular culture too, thanks to everyone from long-standing investors like Elon Musk to that old classmate from your high school on Facebook.

Explaining Cryptocurrency

You’ve probably heard of cryptocurrency, but that doesn’t mean you necessarily understand what it is and how it works enough to get you started on investing.

Bitcoin, Ethereum, Dogecoin, and others have surged in popularity, and it appears like everyone wants to get in on the action. Currently, everyday investors and newcomers can.

Buying Crypto

Is now as simple as opening the Venmo app, and it can be traded like stocks and bonds via trading apps as accessible as Robinhood.

But the real technology behind cryptocurrencies is a bit more complex. While it’s easy to get caught up in the excitement around how some investors are generating a ton of money trading Bitcoin, it’s critical to grasp what cryptocurrency actually is before you invest.

Choosing A Crypto Exchange

When deciding on crypto exchange, the core things to search for are functionality and security measures. Your exchange of choice should have most, if not all, of the features you expect to use, be it fiat-to-currency trade pairings, liquidity aggregation, or specific altcoins and stablecoins you want to trade.

Also make sure that it provides additional lines of defense, such as two-factor authentication and Bitcoin locks, which help fight against hackers.

User-friendliness is an additional factor to think about and is especially important for newer traders who may struggle to navigate through platforms with a less intuitive user interface.

However, advanced traders can also benefit from greater usability.

Lastly, remember to consider geography. Not all exchanges are available in the U.S., several only operate in certain states/locations.

Crypto Predictions For 2022

You don’t need to actually know a lot about cryptocurrency to assume it’s going to be a substantial part of our economic future.

According to a new survey from Quinnipiac University, 43% of adults say they think cryptocurrencies will become a dominant economic force for a long period of time, only 28% say they’ve heard or read “a lot” about cryptocurrencies and 38% say they have heard or read “some.”

When you simplify by age, young people are the most optimistic about crypto: 55% of 18-to-29-year-olds and 53% of 30-to 49-year-olds say they think crypto will be a dominant economic force in the long run.

Only 35% of those between ages 18 and 29 and 38% of those between 30 and 49 say they’ve heard or read a lot about cryptocurrency. 1,936 U.S. adults were surveyed by pollsters during March.

The impression that cryptocurrency is going to be a dominant economic force reduces with older Americans.

Only 40% of 50- to 64-year-olds acknowledge this idea, and just 21% of people ages 65 and older do.

In Conclusion: Is Cryptocurrency The New Economic Force?

We can theorize about what value cryptocurrency may have for investors in the upcoming months and even years, but the reality is it’s still a fresh and speculative investment, without many records on which to base predictions.

No matter what a given expert thinks or says, no one really knows. That’s why it’s imperative to only invest what you’re prepared to lose and stick to more conventional investments for prolonged wealth building.

 

If you have any questions or comments, don’t hesitate to post them in the comments section below or just say hello 🙂 I would love to hear from you!

Have a beautiful day, and remember to always be kind and good to others.

Sincerely,
Richard Weberg

Read Also: How To Build Wealth In Your 50s

Richard Weberg

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