Cryptocurrency is one of the most talked-about things – not just in the investment space, but in the world in general. When it first burst onto the scene, everyone was skeptical about it. How can you attach value to a digital form of currency that nobody can use to pay for things? It was mocked, people invested a lot of money, and nothing really happened.
Then, a few years ago, things went absolutely mental and the market exploded. People became millionaires overnight, and everyone started taking it seriously. The market settled down for a bit once more, until finally erupting again in late 2020. Now, crypto is on the rise once more, and it’s arguably more popular than ever before.
What’s so special about this investment idea, and why is it on the rise yet again? When you think about it, it’s all down to these three reasons:
Protection from banks and taxes
A lot of people have turned to cryptocurrency and blockchain technology as an alternative way to store their wealth. They do this to avoid some of the common issues found when keeping money in a bank account. In fact, as noted on the My Blockchain Life website, people want to protect their hard-earned money from the government, taxes, and banks. Because crypto is less regulated than other financial things, it opens the door for more freedom and fewer fees. Thus, it’s only natural that people become interested in it.
Developing technologies
Next, crypto is on the rise as technology begins to develop and cater to it. Nowadays, lots of big companies are making cryptocurrency payments acceptable – Tesla is probably the biggest one to know about! This suddenly gives crypto a more practical use, meaning more people are likely to start buying and selling it. As more and more technologies come out that can be used alongside crypto, the popularity will only grow.
Celebrity endorsements
While the other two factors are big, this one is perhaps the main reason the cryptocurrency market continues to grow. Some of the biggest names in the world are endorsing it and talking about investments. All it takes is one Elon Musk tweet to send prices skyrocketing. Dogecoin started out as a meme, but it suddenly became popular. If certain celebrities talk about any cryptocurrency, they influence the market. It’s as simple as that, and some people think that crypto relies on celebrities to continue growing as it has done.
If you wanted to take a deeper dive into the topic, you could discover a whole host of other reasons why crypto is now really popular. However, these three reasons are certainly the main ones that most people will agree on. Of course, you also have to take into account the trending effect. When something starts trending, more and more people learn about it. Then, everyone wants to be part of this trend, meaning they pile on board the bandwagon. In turn, this makes the trend even more popular, keeping it trending for longer. A similar thing is happening with crypto – people are investing in it because it’s so popular, which is making it more popular!