Crypto started in 2009 with the introduction of Bitcoin. Since then, it has become the talk of the town. The market is overflowing with stories of people who have made a fortune using cryptocurrencies. However, the crypto space saw a major decline in 2022. Which made us question what are the benefits of cryptocurrency in 2022?
After an incredible bull run in 2021, Bitcoin saw a decline of 10.5% during the first week of January. This decline is a major cause of concern, especially for people who are planning to enter the crypto space. In this article, we will look at the benefits of cryptocurrency in 2022.
1. Easy Transactions
One of the most important benefits of cryptocurrency in 2022 is the ease with which you can exchange it. You can easily exchange crypto tokens, and that too, at an incredibly low cost and more securely and privately. You can make crypto transactions simply by using an easy to use a smartphone app, an exchange wallet, or a hardware wallet. Using these wallets, anyone can exchange a variety of cryptos.
There is more! One of the benefits of cryptocurrency in 2022 is that you can use cash at an ATM. You can buy Bitcoin, Litecoin, and Ethereum using a Bitcoin ATM. You can simply buy bitcoin at an ATM using cash, and then you can send it to anybody using your smartphone. For people who lack access to the traditional financial system, this may be one of the biggest benefits of cryptocurrency in 2022.
The pandemic has made people rely more and more on the internet. This has proved incredibly beneficial for hackers and scammers. This is where one can witness the benefits of cryptocurrency in 2022. The blockchain technology behind cryptos makes them safe and immune to any hacking attempts.
3. Short Settlement Times and Low Transaction Fees
There are various benefits of cryptocurrencies in 2022, both as an investment option and also as a medium of exchange. Transactions in Bitcoin and Ether might range from pennies to many dollars or more. You can transmit other cryptocurrencies, such as Litecoin and XRP, for cents or even less. Completing most bitcoin transactions only takes minutes, or even seconds. Bank wire transfers can be much more expensive and sometimes take 3 to 5 working days to clear.
4. Excellent Investing Opportunity
As we mentioned earlier, there are various benefits of cryptocurrencies in 2022, both as an investment option and otherwise. When it comes to investment options, crypto does not disappoint.
The crypto sector has become one of the most rapidly expanding markets that many of us have seen in our lives. Being active now may be comparable to associating yourself with firms at the forefront of the internet in the 1990s and early 2000s.
In 2013, the overall market capitalization of the crypto space was around $1.6 billion. By June 2021, it had risen to more than $1.4 trillion. Which in layman terms, is freakishly fast.
5. Excessive Profits
Everybody loves profit. The more, the better. And profits are one of the most attractive benefits of cryptocurrency in 2022.
Without a doubt, Bitcoin has been the best-performing asset over the previous 12 years. Bitcoin had virtually little value when it first appeared in 2009. In the years that followed, it would climb to a fraction of a penny, then to tens of thousands of dollars. This translates to millions of percentage point increases. In comparison, the S&P 500 index of equities returns around 8% on average each year.
Some altcoins have outperformed Bitcoin by huge percentages at times, but many of those have since seen their prices plummet. These are some of the most well-known bitcoin advantages. Prices in the crypto realm have been volatile. It is one of the primary perks of cryptocurrencies for day traders and speculators.
6. Diversification of the Portfolio
Portfolio diversification is one of the key benefits of cryptocurrency in 2022. It has established itself as a non-correlated asset class. Crypto markets operate substantially independently of traditional markets. Additionally, the factors that drive equities, bonds, and commodities do not influence the price of cryptos. Any asset that has soared by millions of percentage points in just twelve years, as some cryptocurrencies have, doesn’t have any relation to anything else. However, it is worth mentioning that, in recent years, cryptos have begun to move in tandem with equities for brief periods of time.
7. Hedge against inflation.
Did you know that you can use cryptocurrencies to hedge against inflation? One of the most popular benefits of cryptocurrency in 2022 is that it allows you to protect your savings from inflation.
Investors consider mineable cryptos with a finite supply cap, such as Bitcoin or Litecoin, to be good inflation hedges. Monetary inflation may occur when central banks and governments issue more money. By increasing the supply, scarcer commodities tend to rise in value.
With more and more fresh dollars chasing fewer and fewer coins, the price of these coins in dollars is more likely to rise. Furthermore, the design of the Bitcoin system, for example, is to keep those currencies independent of monetary policy changes.
8. Payments Made Across Borders
Cryptos are not bound by national boundaries. A person in one nation can transmit tokens to anybody in another nation with no additional difficulties. Transferring cash across foreign boundaries using standard banking services may take a very long time and cost a lot of money. In certain circumstances, this may be impossible owing to legislation or conflicts between nations.
9. Markets are open 24 hours a day, seven days a week.
Flexibility is one of the major benefits of cryptocurrency in 2022. In the case of the New York Stock Exchange, stock markets are only open on weekdays from 9:30 a.m. until 4:30 p.m. Eastern Standard Time (NYSE). Most traditional financial markets close at night, at weekends, and on holidays.
Crypto markets, on the other hand, are open 24 hours a day, seven days a week. A power outage, an internet outage, or a centralised exchange outage are the only things that may disrupt a person’s capacity to trade bitcoin.
10. Transactional Liberty
One of the great benefits of cryptocurrency in 2022 is that you can use it to exchange value between two parties. This exchange does not require any third party. It makes the process safer and more secure.
Banks or other payment networks have the right to refuse service to anybody for any reason. This may make life tough for journalists, political activists, and anyone operating in countries with harsh governing authorities. Because there is no centralised body overseeing cryptocurrencies, it is hard to prohibit their usage.
EndNote: The Benefits of Cryptocurrency
The benefits of cryptocurrency in 2022 listed above are only a handful of the most significant. There are, of course, possible drawbacks associated with cryptocurrencies. Some of the major drawbacks to consider are cybersecurity, lack of regulation and oversight, volatility, a lack of intrinsic worth, and infrastructure stability issues as a result of rapid expansion.
Read More: Is Crypto A Good Investment in 2022?