Well, it’s not particularly hard, but its definitely overwhelming. That’s the thing with blockchain technology. It popped up right at the brink of information explosion. Whenever a newer technology was born in the past, it took a significant time to reach the masses. However, with cryptocurrencies, this phase of expansion was rather short lived. I am not saying that cryptoverse is adopted by masses yet, but the speed at which it is spreading is lightning fast. So, that question of the day is, why should I care about cryptocurrency? I am okay with my current money situation. Why do I spend my energy and time in this seemingly complicated domain of finance?
No judgement. If you are one of those people, it’s absolutely fine. Many people have adopted web 2.0 (Google, Facebook, Microsoft) wholeheartedly without even knowing what goes behind it. They can do the same with cryptocurrencies too.
After all, when all this become too big, likelihood of it being served to you on a plate, ready to consume, without caring about what lies underneath, is much higher.
But what if you are on the other side of the spectrum? You want to understand how 12 year old kids are making millions using NFTs, why is everyone all gung ho about Bitcoin? Why are governments talking about it suddenly? Today, I would try to add some fuel to your quest. If you are on the edge of jumping into cryptoverse and blockchain, this post would be it. Without any further build up, let’s dive in: 5 reasons why you should care about cryptocurrencies.
I always say that money is just a by product of this game. The real magic lies in the technology that goes behind powering cryptocurrencies. Even if you are from a non-tech background, you should consider wrapping your head around blockchain.
Ever wondered what is the fundamental issue with digital money? Well, just like everything online, it could be replicated. One DigiCoin (A hypothetical digital cryptocurrency) could be copied and pasted by you endlessly to become a millionaire. But even then, it doesn’t happen with Bitcoin? How could someone change very fundamentals of how internet works? If you are up to challenge your gray matter with many such larger than life questions, dive in. Here’s how you can get started.
B. Real Ownership:
What’s your net worth right now? If you have played your cards right you must have diversified your investments in mutual funds, stocks, fixed deposits, cash savings etc. But do you ever realize that all of this is at the mercy of an intermediary? In case of stocks, you rely on a stock broker who in turn coordinates with NDSL to keep your holdings safe. In case of mutual funds, a fund house is managing your money. Don’t even get me started on what banks do with your FDs.
In a nutshell, if either of these intermediaries were to screw up, your hard earned money is at stake. Cryptocurrencies take that element of accountability and ownership and make you the real owner of your assets. If you are dealing in decentralized exchanges, the wallet you store your cryptos in, is totally your responsibility.
Imagine how banks can freeze your accounts on failure to meet certain conditions. They could also set some rules around minimum balance and penalize if you didn’t comply. If you give it a thought, your banks are basically laying down rules to facilitate the money you worked really hard for. Questionable much! Nevertheless, you won’t face such a situation in cryptocurrencies. You are the owner of your holdings.
C. Growth Prospects:
When it all started in 2008 with Bitcoin, people disregarded the idea of BTC. Later, when it started hitting new highs, it was labelled as a bubble. Come Ethereum in 2015, a similar treatment was given to it. Ever since then, there have been new developments in this space at a galactic speed.
Let’s compare this with the journey of internet. It started with basic functionalities like Email, file transfer. Later it evolved to chat messengers. Sooner than we realized, it turned into this AI powered giant called social media.
The blockchain technology isn’t the next big thing or use case of internet. It is the next incarnation of internet instead. We call it web 3.0 for a reason. And with less than 1% involved actively in cryptos, I think it is an explosion waiting to happen.
D. Professional Growth:
Crypto space grew exponentially in a very short period of time. Which means there is an acute shortage of resources right now. And what happens when demand >> supply? Moolah! So if you are planning to hit that reset button on that 9 to 5 and want to do something you are passionate about, opportunities in this space are a plenty.
Apart from coders, architects and program managers, I have personally found a couple of job profiles which I had not heard of in the past. Here are a few examples:
- KOL: Key opinion leaders refer to the crypto evangelists with a community. They are often paid to engage with a crypto project to create awareness about it.
- Community Managers: These people manage large communities on behalf of projects, exchanges and other crypto based startups.
There is a lot of social element attached to cryptos and these profiles are indispensable part of that ecosystem.
And if you are into active coding, I would recommend you to learn the likes of Rust and Solidity and jump into this ecosystem. You’d be amazed to see the type of money people are ready to pay.
Yes I know. Your palms would be itching big time by now. So yes. Although a by product, but money is a significant output of indulging in crypto space. Did I tell you that back in 2012, one person thought that Bitcoin was worthless. So he tweeted that he is willing to pay 10,000 BTC to someone for a couple of large pizzas. One man from Papa Jones agreed and delivered the same.
Today, that would be Rs. 33,70,94,30,000. So yes. Returns are indeed monumental. Every week I would find one or the other crypto giving returns to the tune of 300%. But don’t forget to DYOR. Also, make sure you are in it for the long run. This isn’t a get rich quick scheme.
Once again. It’s fine if you would simply ignore the noise around cryptocurrencies and go to sleep. But I just want you to imagine the possibilities if you were to rise up to the occasion.
Changing your mind?
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Until next time..
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Psst.. Struggling to save money?
I just managed to save Rs. 10,000 by investing my ‘Chillar (Change)’ in mutual funds. Investing amounts like Rs. 5, 8, 25, 45.. and 4 months later, Boom! I have 10 grand to spare. Interested in knowing how I did it? Read more here.