Cryptocurrency is expanding into the everyday lexicon, and growing interest is expanding the pool of people interested in investing. It is estimated that slightly less than 10 percent of Americans own cryptocurrency. Individuals who do not own any typically give a variety of reasons why they don’t, including the fact that they don’t see a need to do so and that there were too many fees associated with purchasing.
Individuals invest for a variety of reasons. Some people like the fact that these currencies are not connected to any sort of government or banking institution. Others invest because of the scarcity associated with it. There is a hard cap on the amount of cryptocurrency available, and once it is met, no additional will be created. For example, it is estimated that all Bitcoin will be mined by 2140. This low stock to flow ratio generally indicates that an investment will grow.
If you have ever considered investing in cryptocurrency but hesitated because it felt confusing or you weren’t sure what to do, you should know the process is straightforward and secure. You will create a wallet that holds your currency, create a purchase offer, and pay. The coins are then transferred to your virtual wallet.
Who Is Buying and Using Virtual Money?
Many college students use some of their student loan money to purchase cryptocurrency. This may be surprising to some, but there are no rules against it. Student loans can be used for living expenses, and that category is very broad and generous. After they apply here, many students use their loans for groceries, transportation, and childcare.
For someone familiar with blockchain technology and comfortable making the purchase, they feel their purchase will have time to grow, and they can use their profits when it is time to repay their loan. Of course, this is highly speculative, and any money you borrow will need to be repaid after graduation. As an age group, millennials win as investors in cryptocurrency. They make up the majority percentage of investors. More men than women invest, although interest from women is rapidly growing. Most people who make these purchases have a particular interest in banking and financial services.
Business Use and Investment
Once businesses begin the widespread use of cryptocurrency, you can be sure it has entered the mainstream. There are a variety of ways that businesses can and do use the currency. They can accept it as a method of payment. Many businesses are beginning to do this, both for online sales and at point of sale machines. Some businesses are beginning to pay either regular employee salaries or bonuses with cryptocurrency.
Businesses can also invest in this new technology in a variety of ways. They can join projects or develop products or services that implement blockchain technology. Groups and projects are being developed across all industries to come up with real-world use for blockchain technology. As business use of bitcoin and other types of virtual currency grows, more people will become comfortable using it in their everyday life.
Featured image: Hacker Noon