Hey guys, it’s Sharon from digital nomad quest and today we’re gonna go over why people are investing in cryptocurrency and make sure to watch till the end of this video so that you understand what is cryptocurrency, why people believe in the concept and how you can start investing in cryptocurrency. Now if you guys are new to the channel welcome I’m all about teaching y’all how to build passive income become financially free and design your best life. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. Cryptocurrency has been super hyped up lately, the recent surge in price with Dogecoin, the Coinbase IPO everyone’s going crazy about it and it’s one of the hottest topics lately I feel like most people are buying because of hype and I feel like it is kind of dangerous to do. So you don’t want to see certain coins go up in price like crazy and then just have FOMO and want to buy it when it’s at the top. You have no idea what’s going to happen you don’t even understand the fundamentals and things could go totally wrong and you end up buying at the peak and everything dips it’s important to understand the fundamentals of cryptocurrency so that you understand more if you have a long term outlook on certain coins or on cryptocurrency in general whenever you are investing in something whether it’s stocks, real estate or cryptocurrency make sure you are doing your due diligence, researching and understanding why you are investing in something that way with dips and peaks. You’re not going to get scared if you have a long term outlook on whatever you’re investing in. But before we begin, I also want to say that this is not financial advice. It’s all for informational purposes only. So just like I mentioned before, make sure you do your due diligence before you invest. Now first off what is cryptocurrency? Simply stated cryptocurrency is a new form of digital money. The thing is crypto could be the next mainstream currency in 2018. Twitter co founder and CEO Jack Dorsey actually predicted that Bitcoin could be the single currency of the internet, he quotes the world ultimately will have a single currency the internet will have a single currency. I personally believe that it will be Bitcoin, it would have been probably over 10 years, but it could go faster. And in February of 2021, Tesla bought $1.5 billion a Bitcoin and plans to accept it as a form of payment. So a lot of big players are actually believing that cryptocurrency could be the future. And one of the biggest reasons is that cryptocurrency could get rid of the middlemen like banks because they rely on technology called blockchain, which is decentralized, meaning that no single entity controls it. Instead, computers in the network confirm transactions. Okay, all that might sound confusing. So let’s go over what money actually is. First of all, there are three basic criteria to money one is enough people must have it number two, merchants must actually accept it as money. And number three, society must trust that it’s valuable in an article by coin market cap if they said a whopping 10% of people now own cryptocurrency in United States that equates to 33 million Americans. So obviously more and more people are getting cryptocurrency by the day. Now also, if you see in the screenshare, we can see that Bitcoin has dramatically increased in price and more and more people are trusting that it’s valuable. As you can see here in 2017, there was a huge spike in price Bitcoin holders had to wait many years before this spike, and then it went back down afterwards because too many people were just buying out of hype, but in 2021, it reached new highs hitting over $64,000 which is pretty crazy. So with multiple price surges and bitcoins market cap at over $1 trillion. It feels that society is more and more trusting that Bitcoin is valuable in what Tesla planning to open up Bitcoin as a form of payment. It does feel like more and more places are accepting it. I also noticed that honey gain is now paying out through Bitcoin. I’ve actually seen Bitcoin ATMs in malls as well. So I definitely feel like it’s becoming more and more accepted. And let’s talk about how money was started. So in the very beginning, people were bartering, right, and then they started using gold. But then gold became too heavy. So then they started using paper, then people started feeling lazy. So they started using credit cards. Now with credit cards, that means you’re carrying money that the government controls and people are more and more worried that these authorities that are controlling your money don’t have your best interest in mind. So now let’s go over some of the reasons why people are investing in cryptocurrency and really believing that it could be the mainstream form of currency in the future. First off, it cuts out the middlemen that make transactions slow and expensive. For example, when I’m wiring money for my earnest money deposit for my real estate properties, it takes some time and it costs like $30 for me to wire that money. And every time you pay with a credit card at restaurants, it costs restaurants money for those fees. That’s why a lot of small restaurants for example, still are just cash only because they don’t want to have those high fees. But with cryptocurrency they would be able to get rid of the middlemen of banks and ATMs and things like that to make it faster with less fees. Number two, there’s going to be less corruption because they’re going to be able to spread the power amongst the people. So most cryptocurrency have a limited supply of coins. But with printing money, you can just print as much money as you want. In 2020, the Federal Reserve actually pumped in $2.3 trillion into the US economy now with cryptocurrency you wouldn’t be able to do that
you wouldn’t be able to pump coins into the supply because there’s going to be a maximum of supply. So there wouldn’t be as much inflation from just printing money. It’s a problem that when there’s a bunch of debt central banks can just basically pump out a ton of money. And when you’re pumping a bunch of cash into the economy, it makes a purchasing power of cash go down, cryptocurrency would get rid of this problem and stop that inflation from happening. Number three people would get more control. For example, if you don’t have a legal will and you own a business, the government could actually take all your assets when you die. The government has the ability to freeze your bank account so you don’t have access to it. On the other hand, crypto is decentralized. No single entity owns it, and you are the only one who would have access to your funds. And lastly, people who don’t have access to banks would be able to make payments in 2017, it was reported that globally about 1.7 billion adults don’t have access to bank accounts. However, more people do have access to phones over banks and cryptocurrency would be able to serve the unbanked these people would be able to pay through their phones instead of their banks. So there are a lot of benefits to cryptocurrency that make people feel like it could be the next currency that people use. However, it doesn’t come with risks right now. It’s super volatile and there is a lack of regulation so you need to make sure that if you do decide to invest in cryptocurrency that you understand the risks that are involved, like I mentioned with the concept of money enough people need to buy into the concept for it to actually be a thing that’s why it is still like a high risk high reward play as of now so I wouldn’t invest your life savings into cryptocurrency yet it’s still something that’s very volatile and it needs everyone to buy into it for it to be a thing now if you decide you want to try to invest in cryptocurrency, you might want to know how do you start investing now in order to invest you need to invest with an exchange exchanges are where you trade cryptocurrency tokens. So for me for example, I am best with Coinbase, binance, Bitrex and Bitstamp. Now for beginners I would recommend Coinbase and I also recommend by Nance when you get more advanced. So I’m going to do a screen share of Coinbase I can show you how it works if you want to sign up for Coinbase or by Nance you can use my links below now if you do decide to use my link below again I mentioned you’ll receive $10 worth of free bitcoin if you buy or sell $100 or more of cryptocurrency now you’re going to go ahead and sign up here and create an account and once you do, you’ll be able to go into your dashboard. So this is my portfolio in one of the exchanges like I mentioned I do have four that I use so in order to buy and invest you can go into buy sell you tap that button here and all you do is you know put the number you want and best maybe you want to do $100 And right here you’re going to be able to choose the different methods to pay with you can add a payment method it could be your bank account or your debit card or wire transfer so they make it really easy for you to use. Now once you do this, you just go preview buy and you can start buying if you want to convert your coins from Bitcoin to Aetherium for example, you can do it this way as well. And if you want to sell your coins you do it like this to withdraw into USD. So it makes it very simple. That’s why I like Coinbase it has a simple UI it’s super easy to use. It’s the trustworthy one you know it IPO recently so highly recommend Coinbase for beginners if you want to start investing in cryptocurrency now I hope you guys enjoy this episode on what cryptocurrency is and why people are investing in it and I also went over how you can start investing in cryptocurrency through exchanges like Coinbase and binance On this channel I might be doing more and more cryptocurrency videos because it is definitely getting more popular I’m investing in it more to but again this is not financial advice make sure you understand the risks and do your due diligence when it comes to investing okay this is all informational purposes only now if you guys liked this video make sure to smash the like button let me know in the comments below which cryptocurrency you guys are investing in. subscribe hit the bell button to be notified on my latest videos and I’ll see you guys in the next one. Transcribed by https://otter.ai