33 Reasons To Invest In Cryptocurrency Before It’s Too Late

admin December 3, 2021

3. Cryptocurrency On The Black Market

The Silk Road scandal provided a lot of exposure to the emerging world of cryptocurrency. At the same time, it also caused a lot of bad press. Silk Road was a website that exploited Bitcoin’s anonymity to sell illicit products, including illegal drugs. People who used the website could buy those products without divulging their true identities.

When the scandal came to light, those who had created the website faced prison terms. The government began to ask serious questions about how it should handle the emergence of the crypto-economy. People might have otherwise been interested in Bitcoin and other cryptocurrencies. But they decided that they did not want to be a part of it. You know, something that people might consider the black market. Still, in the years following the Silk Road scandal, studies have shown that most of the use of Bitcoin and other cryptocurrencies has been for basic goods and services, not illegal drugs.

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2. Taxes and Cryptocurrency

One benefit that cryptocurrencies provide is that they are tax shelters. True, the dollars you earn and use to buy the cryptocurrency will eventually get taxed. But as the cryptocurrency itself increases in value, and as you use cryptocurrencies to buy more cryptocurrencies, they cannot tax that money.

Governments have tried to implement methods of taxing cryptocurrencies. Some wallets that people use to hold cryptocurrencies have conceded to tax laws and issue tax documentation. However, others have upheld the anonymity that is intrinsic to the crypto-economy and evaded efforts at taxation.

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1. Too Good To Be True?

Despite the benefits of cryptocurrency, it is not a panacea for all of the world’s financial problems. There are certainly some enthusiasts who see it as the global market’s future. But people may overstate that usefulness. One reason why cryptocurrency benefits may be overblown is that many people buy cryptocurrency and hold onto it just to be part of its increasing value. If all that cryptocurrency does is increase in value, then it really is nothing more than a bubble waiting to crash.

Investors have to tie the value of cryptocurrency to its real-world usefulness, not just its ability to increase in value over time. As long as it is useful in blockchain transactions to develop blockchain apps and the Internet of Things, it will maintain value. But it will likely never overtake traditional currency.

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