Crypto Is Inevitable !

As per traditional finance, there are two types of currencies – Commodities (have an intrinsic as well as extrinsic value e.g., Gold) and the Fiat (extrinsic value only e.g., $100 money bill). Lately, an interesting third type of currency has evolved in the world termed as Cryptocurrency which falls in none of the above-mentioned categories. Similar to the Fiat currency, crypto can be traded, but its different from the Fiat in the aspect that it has no underlying assets similar to a country’s gold reserves. Also, similar to the commodities, it has a limited supply and depicts a huge future growth potential and a worthy substitute for Fiat.

Now, it becomes imperative to understand the importance around the Cryptocurrency due to a few critical reasons such as:

1. Revamping finance space: Decentralization of finance (DeFi) was the root cause behind invention of Bitcoin and Crypto does it well. With Crypto infrastructure, the entire end-to-end payment system is truly decentralized, transparent and swift. Apart from that, it cuts out the middle man, enables a transparent flow of money, maintains a public rule book (smart contracts), empowers anyone in the entire chain to become a lender (liquidity pools) and helps keep an immutable/safe recordkeeping over the blockchain. Most imminent issue with the Fiat currency is its unlimited supply. The Fed can keep printing bills and the same circulates within the economy lent from one party to another. This unlimited supply of money causes unlimited and cyclical lending until the real problem is snow bowled into a huge bubble creating events such as 2007 financial collapse. Although, having a currency (Crypto) that is limited in number can avoid these problems even during these cyclical lending trades (such as Yield Farming) as in the end there are only a specific count of coins those can be lent and will exhaust once that count is over. Regimes across the world are threatened by the fact that Crypto will take over the Fiat currency in the near future which is a critical threat to the country’s bargaining power and hence they try harder to regulate it (or better ban it). The truth is Crypto / Decentralized Finance is an inevitable event now which can’t be suppressed in the near future.

?2. Wealth transfer: In Unites States alone, in the next 20 years, the world is going to witness a greatest wealth transfer (around USD 35 Trillions) from the baby boomer generation (people 70 years older) to the millennials (people around 40 years older). As per the findings by Frank Gogol, 94% of Crypto buyers are millennials and they are already outspending them. Merging both the statements above, it is pretty evident that in the coming future, a lot of investments will be witnessed into the Crypto space (NFTs, Metaverse, DeFi, Web 3.0). Rest assured, with fertility rate of developed and developing economies such as Singapore, Japan, South Korea, Spain, China, India etc. falling to the lowest numbers, there is a huge scope for the millennial generation to step up and shoulder the responsibility to earn/invest/manage the assets and corpus either earned or inherited to them. To sum it up, it might take sometime for these millennials backed investments to get pumped into these new lucrative assets such as Crypto, but this phenomenon is inevitable.

?3. Use case: For any sane investor, the only use case for his investments is the Return on Investments (ROI). The trend I am witnessing nowadays is, unlike last year, the present Crypto investor is not only comparatively more enlightened about usability/themes of the coins but also is ready to take more risk for his Crypto investments. The availability of 100 different Crypto exchanges in the Play store/Apple store, those enable you to trade you on the investments of as low as USD 1 awakens the gambler within even the sanest investor. ?Last year the market waves were ruled by meme coins but this year the bull run will benefit coins inclined towards themes like DeFi, Metaverse, etc. Investors have realized the hidden gems, companies like Curve Finance, Yearn Finance who does yield farming (rotating the Crypto assets deposited into the central liquidity pool by investors) to payback a fixed interest up to 36% per annum and that is marvelous ROI. For other big whale investors with billions amount of money parked with them, pumping it into the coin has indeed become a handy solution to get most ROI in shortest span of time. Nevertheless, all of the above confidently promises the fact that – Yes, the investments are flowing in!