Is Cryptocurrency a Get-Rich-Quick Scheme or is It Solving a Problem?

There are several misconceptions about cryptocurrencies. One of such is the belief that cryptocurrency is a get rich quick scheme. It’s true you can get huge returns on investment on crypto tokens but that does not make it a get rich quick scheme. In this article, I will share why I think so.

The crypto market is one where patience and diligence is needed to see results. It’s not a prediction markets where just anyone can tell where it’s headed. Macro and micro economics analysis, trends and narratives are taken into consideration before forming a bias for trading. Even after a bias have been formed, backtesting is also done as proof that the strategy works.

There’s a lot of work that goes into cryptocurrency as a whole. You can’t just sit and predict what goes on, a lot of factors are considered. Its use case is not limited to just trading and investments. Crypto has proven to solve real-world problems. Let's take a look at a few of them.

How Crypto is solving real-world problems

It is provides a hedge over Inflation

Inflation is a global problem that has battered the economies of several countries in the world. It results to devaluation in the country's currency and subsequent hike in the price of goods, services and commerce generally.

Stable cryptocurrencies like USDT can protect individuals living in regions that are prone to Inflation. With stable cryptocurrencies, individuals living in inflation-affected regions can protect themselves from losses.

It facilitates fast, and cheap cross-border payment

With Cryptocurrencies, you can transfer money to another account in a different locality without going through stringent procedures of the bank.

In addition, you can pay for goods and services and accept payments too at a very cheap rate. Cross border transactions using the traditional financial service providers like the Banks is expensive. You will spend more. But, with Crypto, you will spend less.

It serves as a source of alternative income

Cryptocurrencies provides you with an alternative source of income. For instance, individuals can earn money just by staking cryptocurrencies. Staking occurs when funds are locked in a project, most times to help improve such a project. After a while, the funds staked yields more profit.

It removes the middle man and saves costs

Cryptocurrency enables peer-to-peer transactions between two people, in which no third party is needed to verify the transaction. By eliminating the role of intermediaries such as banks, you can trade seamlessly with the person on the other end. In other words, cryptocurrency enables transactions to occur without the need for a central bank or another intermediary.

It protects the privacy of users

You can buy cryptocurrencies without being known. This is essentially helpful for those who want to remain unknown to others.

CONCLUSION

Cryptocurrency has contributed positively to the development of the global economy. From fast and cheap cross-border payments to anonymity of users, we can say it's more than just get-rich-quick scheme.

However, it's important to be aware of scams that exist in the industry by bad actors like Rug Pull and others. Doing your research before getting involved is the best way to play safe.