Why do People Choose Crypto These Days? 3 Reasons

Everybody on Twitter talking Bitcoin & Dogecoin, headlines scream crypto, riding the wave of the hype. But why has crypto become so much more popular in the past few years?

These days in crypto

Image Source: Twitter

Bitcoin is down 60%, the crypto market has lost $1.5 billion of capitalization over a year, Terra Luna crashed in May, recent FTX collapse is in our today's crypto context. And still, the number of Bitcoin holders only keeps growing and actually hit it's all-time high.

Let's pinpoint some reasons why people keep buying crypto regardless of the context by analyzing what people on the internet share about their crypto experience.

Why do people invest in crypto?

People asked “What made you invest in crypto” name at least 3 benefits of cryptocurrencies illustrating why it is the fastest-adopted innovation in the world.

1. Crypto volatility may be attractive

Image Source: Quora

According to the Morning Consult July report, the primary goal of investing in cryptocurrencies is to make profits — over 60% of crypto holders hope to find quick side earnings with crypto.

Quite understandable: massive volatility of digital assets is occasionally followed by unprecedented ROIs. Yet, it's worth reminding over and over again that failing to fully realize the risks is extremely dangerous.

2. Crypto aids where traditional banking fails

The same report displays that around 40% of people enter the crypto space because they believe in its ability to enhance the banking system or, radically thinking, become a more reliable alternative to it.

In our blog, We have not once covered how blockchain solutions take financing to another level. Here are some of the takeouts.

• Cryptocurrencies are more accessible than institutional banking.

Image Source: Quora

Cryptocurrencies allow for peer-to-peer transactions without any intermediary involved. Everyone from anywhere in the world can access crypto using just their mobiles connected to the internet. For some countries with heavily damaged economies that means a lot.
People in Ghana use cryptocurrencies to help them out of poverty caused by 40% inflation rates, or Argentinians with a 155% inflated economy are left to rely on cryptocurrencies to pay their bills. And now, the macroeconomic disaster triggered the Bitcoin legal adoption movement in Europe, Asia, and Latin America.

• In times when society can't trust governments, they may prefer trusting the code.

Image Source: Twitter

Angry with Feds hiking interest rates, people start to acknowledge cryptocurrency virtues: digital assets have a monetary policy set in code, designed to cope with inflation.

• More people lean towards crypto realizing they do not have to trust any central authority with their money.

Image Source: Quora

In a conventional economy of 2022, a small group of people in governments and banks holds power over money. In the other corner of the ring is the blockchain that endorses self-custody, and full control over digital assets storage and management.

Take non-custodial wallets as an example. Decentralized wallets like MetaMask, Trust Wallet, and Arctic Wallet provide users a software (or hardware, in the case of Trezor and Ledger) to directly interact with the blockchain.

• True DeFI wallets provide you with all the private keys and seed phrases and never have access to your funds.
• Wallet owners are identified purely by a string of digits, remaining anonymous, yet the record of transactions associated with the address is forever “stuck” on the blockchain, transparent and visible to anyone.

Image Source: Arctic Wallet App

It might be pressing for some people to have sole responsibility of keeping funds safe and sound, but the freedom of money is there.

3. Believers in technology

Image Source: Quora

Blockchain technology made it possible to develop smart contracts and digital currencies — powerful tools to reshape the global economy, and many other spheres of life.

Ariel Zetlin-Jones, a professor of Economics at Carnegie Mellon University teaching Introduction of cryptocurrencies courses, compares the crypto & blockchain establishment process with “the internet in the late 1990s. Lots of individual stocks and companies were over-valued and collapsed, but Amazon and Google are still around.”

Safe Haven?

Some people rely on cryptocurrencies as a store of value, while others anticipate that digitized assets may be the way the world works. Regardless, it's transparency, accessibility, and earning power that keep people invested in crypto

Is investing in cryptocurrencies a good idea? The answer should come from personal goals for doing so, and only after considering all the risks. The world of crypto has something to offer, whether or not accepting it is a pure individual preference.