Have you ever attempted to predict the future of money? Most people don’t have a clue about which direction it’s heading. But if you’re paying attention, you’ll soon see that things are definitely changing. Cryptocurrencies like Bitcoin, Litecoin, Ethereum, and others are changing the financial landscape entirely.
With money comes power, as the saying goes. In the past, big governments around the world controlled the money. This means they had all the power. And for the most part, they still do.
Now that crypto exists, we have decentralization, greater market access, fraud and identity theft prevention, and more working in our favor. The power is slowly but surely shifting back into the hands of the people.
As far as the future of money goes, it’s hard to predict unless you’re clairvoyant. But at the same time, there’s a definite currency directional shift taking place and it’s moving into the digital sphere.
Right now, governments and banks can’t be trusted. They do not have your best interest at heart. In the past, they acted as friendly intermediaries controlling the flow of money. But now they use their power to prevent average Joe’s and Jane’s from ever getting ahead.
Is crypto really the wave of the future? We have a feeling that it is. The potential is truly astounding. And it’s the reason why we recommend opening a cryptocurrency IRA today. We’ll do our best to tell you why the future is bright below so keep reading to discover the truth.
A Cryptocurrency Overview: What Is It?
The bare-bones of cryptocurrency are very easy to understand. Instead of having physical money (paper, coins, bars, etc.), this is a form of digital currency. Its sole purpose is to use blockchain technology as an electronic payment system used over the Internet.
Unlike other systems like credit cards and PayPal, crypto doesn’t transfer physical money like the US dollar or the UK pound. It transfers digital coins (Bitcoin, Litecoin) from one person to another to pay for various goods and services on the web.
The Inner Workings of Cryptocurrency
If you are new to crypto, you may not understand the inner workings of this currency. To help provide insight, we’ve shared some simple things to understand. They include:
- Cryptocurrency transactions take place when funds are transferred between two crypto wallets.
- Transactions can happen for any number of reasons. You can transfer from one wallet to another to pay for goods, services, information, or anything else for that matter.
- When a transaction is completed, it is then submitted to the public registry. Once submitted, it then waits for a transaction confirmation.
- Each digital crypto wallet uses an encrypted electronic signature while executing transactions. The signature offers a mathematical confirmation proving that the transaction is legitimate. This comes directly from the wallet owner.
- Since crypto miners must confirm this transaction, it takes a short time before the confirmed transfer reaches the public registry. As an example, Bitcoin transactions take roughly 10 minutes to receive confirmation.
Clearly, crypto is making a name for itself in the currency space. To get in on the ground floor, consider opening a cryptocurrency IRA right now while it’s still in its infancy.
The Advantages of Cryptocurrency and Why Investors Feel It’s the Future of Money
As you’re about to learn, there are certain advantages to using crypto over traditional paper money. People are generally afraid to change so it may take time for this transition to happen. This is a great thing for investors looking to capitalize on crypto and get in early.
With that said, some of the biggest advantages of cryptocurrency include:
- It offers instant payments – for business owners as well as individuals, this is definitely a godsend. When you make a transaction using a debit or credit card, the payments often take days, sometimes weeks, to process. This means it takes more time to get your money. On the other hand, cryptocurrency transactions process immediately. The transfer takes place instantly and confirmation usually takes about 10 minutes or less.
- It’s new and attractive – so many people are interested in crypto, especially Bitcoin, right now. Why? They are interested because it’s new, different, and very exciting. This will attract new people to the currency as they become more familiar with it. This is a good thing for IRA investors because more interest means more value over the long run.
- It improves fraud reduction – the instances of fraud are cut down tremendously with crypto. As an example, when a transaction is made with Bitcoin, it cannot be reversed later on. With credit card payments, there are chargebacks and payment reversals happen often. Frauds tend to exploit this feature using credit card payments. This will never happen with crypto.
- It eliminates potential barriers – buying and selling goods internationally becomes much more accessible with crypto. Potential trade restrictions and regulations aren’t a problem because those barriers are removed. Individuals and businesses can accept payments easier with this option.
- It offers lower transaction fees – credit card transaction fees are often very expensive for everyone except the credit card companies who stand to benefit. The fees associated with crypto trading are much lower. Plus, there isn’t a need for bank charges with these transactions, which makes them even more attractive.
The Experts Weigh in on Cryptocurrency as the Future of Money
It’s a bit of a mixed bag when trying to determine if crypto is the future of money according to the experts. Some believe that it’s the future of all currency. Others aren’t so confident. Erik Voorhees and Peter Schiff both have strong opinions that they shared in an Oxford style debate that include:
- Erik Voorhees says, “Bitcoin or a similar form of cryptocurrency will eventually replace government fiat as the preferred means of exchange.” He believes that fiat currency is bad money and cryptocurrency is good money. He also likes that digital currencies are on blockchain, which is a lot more secure than paper assets.
- Peter Schiff explains, “It costs $60 in transaction fees to buy $5 of coffee. People are buying Bitcoin because they believe one day it is going to be money. It is not money now. People use it as a speculative asset.”
Overall, at the end of the debate the audience took a poll. 55% of the attendees agreed with Voorhees and took his side. They feel Bitcoin or another cryptocurrency will eventually replace fiat currencies over time.
At the end of the day, only you can decide on your financial future. Do you believe in cryptocurrency? Do you understand the true power of this investment in the future? If so, consider opening a cryptocurrency IRA sooner rather than later. Get in now while this potential change is still in its earliest stages.