Is it wise for students to buy cryptocurrencies? This article gives reasons why bitcoin investment is a suitable choice for students. But first, what is digital currency? Digital currency is considered a complex concept that many people fail to understand. In simple terms, digital currency is digital evidence or proof. You can now prove that you have ownership of something digital. Before this, you had to use third parties such as a bank. With digital currency and through decentralization, you can prove ownership without anyone’s help.
So why should students invest in digital currencies?
Digital Currencies Rules Are Permanent
Permanent rules imply that digital currency is stable and consistent. A good example is that there is always a 21 million coin supply cap in digital currency. This rule is different for all international governments. These governments print more money day by day. Some countries call this quantitative easing. For this reason, digital currency investment remains transparent where government intervention is at the minimum.
Digital Currency Is Rare
The value attached to digital currency is primarily dependent on its scarcity. There are always 21 million digital currencies at all times. This fact remains to be unchanged. Gold, for example, is scarce. However, should there be a surge in gold supply, its value would decrease. If digital currency can develop to become a type of digital gold having a market cap of $6 trillion, its valuation would increase to $340,000 per coin. That is possible since the worth of digital currency used to be $1.
Digital currency is a transparent investment. Cryptocurrencies, unlike other currencies, has transparency and decentralization traits. Other currency systems fail to have transparency. In this case, an individual cannot know where his taxes go. One cannot even know how much money the government prints daily. Daily printing of money leads to inflation in the economy. Should governments use digital currencies, it would be possible to know how many digital currencies are available and where they end up.
International transactions can be filled with a lot of friction and cause long delays. Digital currencies offers lower fees compared to other transfer institutions. Their cost can rise with the value or increased use in the digital currency blockchain. Especially if you need to make an international transfer, the fees are way cheaper than other transfer services. Students can make cheap transfers and remain with enough money in their pockets.
Digital Currency Regulation Improving
A while back, digital currency was unregulated where there was no assurance of protection in cases of payment error. Regulation is being adopted slowly and, digital currency users can make transactions and store value.
There is much room to make profits with digital currencies. The trend has been going up. There have been times of dips and valleys. It is essential to be knowledgeable when making decisions such as selling or holding. Poor choices can lead to losses. However, good decisions will lead you to reap maximum profits. If students buy cryptocurrencies, they can become less dependent.
Everybody admires gold and jewelry. However, gold is difficult to have digitally as a form of wealth. Living in a digital world, digital currency represents a digital scarcity that increases its value. Unlike gold, they are immeasurable and, one can sell and transfer as fast as possible. Digital currency is a suitable option for a digital world. It is easily portable, appropriate for payment, and easily transferrable. Digital currencies provide these digital solutions and remain valuable. Many people and companies are beginning to see it as the new gold.
Digital currencies are digital. It means that they are fast when it comes to making transactions. A digital network allows fast international transfers. As a user, you do not have to wait for a long time during transfers. It also has encryption with a blockchain. This blockchain makes digital currency secure, and hacking becomes possible. Students can quickly buy bitcoin with credit card or debit card, and even buy gift cards with cryptocurrencies.
All these are reasons why students can buy bitcoin as an investment. It is a new and modern way of using currency that gives room to experience different ways of doing things.