By Ali Ilyas on The Capital
Here are 6 simple reasons why I think everyone should consider investing in Crypto. Before we start, I am very new to the Crypto world and still learning and exploring this world. I only started in recent months during COVID-19 and became so fascinated and crazy, that I decided to resign from my full-time accounting business and dedicate my life to learning more about Crypto and passive income every day.
Something about myself, I am a CPA qualified accountant for 15 years and ran an accounting practice for 5 years, starting from scratch with zero clients and zero turnovers, and by constant learning and passion, I managed to reach the turnover of half a million.
I believe if we have a strong desire to learn and take massive action, we can definitely get anything we want.
How I got into Crypto is a long story as I was always looking to invest in something other than fiat money and my top favorite assets have been Gold and Silver for many years. And although I knew about Crypto as an accountant, I had to help clients with their taxes, but always thought of this world to be very speculative and highly risky as I heard stories of people losing tons of money.
But recently, after watching tons of videos on Youtube and learning about how money is created and how wealth is distributed, today I have been brains-washed and I believe Crypto is the new Google or Apple and it has a very bright future.
Here are 6 simple reasons why everyone should consider investing in Crypto.
1. Unlimited Printing of Money
We are all aware of the fact that every government around the world has been printing an unlimited supply of money and the printing volume increases during panic times. I live in Australia and recently the Australian Government copied the American stimulus package model of paying around $1500 AUD every fortnight to businesses and employees and also introduced massive tax rebates and refunds to small businesses.
Yes we understand, these packages are introduced to support small businesses and people and the economy, but the question is, is this is the only possible solution or we should find other alternatives?
Personally, I think there are better options because printing more money and creating more debt has no limits and this undervalue the currency. If this is the only option, why are we paying taxes?
I used to be a big saver and always saved x amount of dollars in other bank accounts making sure I have enough money for rainy days or for investments. I did it for several years and the value of my savings in AUD never grew, I wish I knew this when I was in my early 20s.
2. Crypto Supply is Limited
However, not every Crypto is the same, but the whole idea of the creation of bitcoin in 2008 was due to Fed quantitative easing and an unlimited supply of money. If we see, bitcoin supply is limited to 21 million, which means their only be 21 million bitcoin ever created.
For those who do not understand the supply and printing of money, here is a simple example which I always used to explain to my clients.
Let’s suppose there are 10 people sitting in one room and you have handed over $1 to everyone and there is one bread available for purchase. Using common sense, everyone will be willing to pay $1 to buy the bread. But, let’s assume, you have handed over $5 to everyone in the room, now every person is willing to pay unto $5 for the same bread.
In this example, bread is the same bread, fresh and beautiful and everyone would love to eat, but why people are now willing to pay $5 instead of $1 is because they have more money in hands.
My personal motivation to invest in Crypto is because we have some simple rules that if there are 10 people in the room, not single one person who has more powers and just go out and print as much money as possible and this creates scarcity and make the asset more valuable.
3. Blockchain Technology
Two years ago, what I knew about Crypto was that the whole thing is speculative and risky and since I had very bad experiences with Forex trading in the past, I never considered Crypto to be something valuable.
Today after doing tons of research, what I have found is this is not about bitcoin or some other altcoins or some speculative assets, it is more than that and the more I know and explore, the more I want to learn.
This world is about blockchain technology and personally I am not tech expert or have any developers background, but in simple layman terms, I have discovered some real technology companies who are working on making the payments process simpler and faster and sharing real-time information with other systems.
For example, there is one company where any business or individual can create a website domain and send payments using domain addresses rather than wallet address.
Then the other amazing thing I have discovered is cool internet browsers who pay you for browsing online and there are smart contracts and much more.
4. Potential Gains and Passive Income
For most of us, this point should be number 1, as everyone wants to earn more money and passive income. But there is a reason, it is number 4, it is because Crypto will definitely make you rich and you will earn passive income, but the first three points talk about the fundamentals of crypto which are more important to understand.
I have had many capital gains recently and almost doubled up my money into 2–3 months, but it comes with a lot of hard work and constant learning and education and action and making tons of mistakes.
There are lots of ways to earn income from crypto, and the best investment you can do is the investment in yourself which is learning and education and trial and error.
You can earn income from investment in top crypto assets, then you can possibly invest in Decentralised Finance and there are also options to set up masternodes, staking and much more, but again everything comes with the price and in this case, the price we have to pay is learning and education because there are many scams out there too.
5. Big Corporations already invested in this technology
Since crypto world is not just about speculative assets, it is about technology and making our life better, every big corporation such as Google, Microsoft, Twitter, Samsung, etc are partnering up with this technology.
And there are several reasons why these big corporations are investing money into this technology (other than speculative purpose) is because they believe in this technology. We all know that we live in the digital age, for example, my 5-year-old son hardly sees any currency notes and knows about bitcoin and how to collect coins online and play games.
6. Ideal Investment for People with low income or millennials
Relating this to myself, since last year I tried everything to get into real estate because I am a big fan of passive income and already have one investment property. But after continued efforts and even having an accountant experience and knowing every top broker who can get me a loan, my home loan got rejected several times.
I am a person who never gives up and wanted to try again, but this year after learning about crypto and the fact that you do not need half a million dollars or 1 million to invest in crypto, you can even start with $1 and earn 100x or 1000x.
After knowing this and also realising current economic crisis, where landlords of real estate properties are not even receiving rents and there could be a possible real estate bubble in Australia, I decided to not go ahead with real estate and after real estate,
Crypto or Gold or Silver is the only option where we can have potential capital gains and also earn passive income.
So if you are in your 20’s or 30’s or even older, and do not have huge savings, even investing $1 a day will help and it could become an investment of a lifetime.
DISCLAIMER
I have an Accounting background, but I am not a financial planner or investment advisor and the above article is written for educational and entertainment purposes only. Investing in Crypto is highly risky and please do your due diligence before making any investment decisions.
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6 REASONS WHY WE SHOULD INVEST IN CRYPTO IN 2020 was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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