Evades Unnecessary Tax Regulations
Cryptocurrencies have become the hot topic of the decade. It has become the area of focus for many inventors and traders in the market. This is because everyone is getting fed up with unnecessary tax regulations. Some traders have admitted that tax regulations formulated by the centralized financial system have started taking a large toll on their business. Things might become much worse in the future.
The businessmen and large corporate companies are having difficulties in negotiating with their business partners and clients as high-end taxes are taking a large chunk of share from their investments. Also, governments keep continuous vigilante over industrial companies and corporates. Sometimes, it gets too much closer to the vest. It is high time that we introduce something formidable that could be the best resolution to these problems.
Therefore, cryptocurrencies are the only way through which we can establish a decentralized financial system where everyone can do transactions in a secure way and without the intervention of the government. The idea of cryptocurrency was tossed a decade ago and there have been 1000s of debates held since then. There are always people who are against the establishment of something formidable as cryptocurrency.
Strong Justifications from Critics and Enthusiasts
However, the points mentioned by the critics and enthusiasts both have an equal number of valid points and justifications to support their argument. Therefore, it is hard to come to a strong conclusion about the deployment of cryptocurrencies. The research is still being conducted by various financial experts and economists. The main question is, “could cryptocurrencies be the better alternative to fiat currencies?”
The answer to this question is pretty difficult because the idea of cryptocurrency trade is largely based on speculations. However, in order for this idea to succeed, these speculations need large support. The fact about any cryptocurrency is that it needs the investors’ support otherwise it will be declared a dead cryptocurrency in no time. So far, there are many countries that are trying to avoid the possibility of cryptocurrency trade.
Countries like India are planning on levying 18% GST on the cryptocurrency trade if it has to be allowed. The problem is that the establishment of the cryptocurrency industry requires a forum that regulates the operations. All the people that are hesitating to put their investment in cryptocurrencies are very much concerned about this issue. In order to trust this system, they need someone to look forward to, when a discrepancy, scam, or any kind of dispute occurs.
Fear Of Missing Out (FOMO)
We have noticed some rich people trying to invest a couple of millions in cryptocurrencies but they are afraid if that would be a good decision for them or not. It is good to see some people showing optimism towards the cryptocurrency industry. They also ask, “is Kraken a good exchange?” or “what are the best De-Fi Apps?” All these things remind us that there are many questions that need to be answered well.
Only then people would be able to grow trust in this industry. There are a few critics who also say that the reason for most people to make investments in cryptocurrency is due to fear of missing out (FOMO). The impact of cryptocurrency on the economy could be a matter of debate. In order to make firm conclusions about the performance of cryptocurrencies, we need more data and it is not easy to access the data of crypto-investors and the effect of their investments on the economy.
Impact of Cryptocurrency on Economy
The gross domestic product of any country depends on the people, the number of investments they have made or ready to make. We still need to analyze a lot of things before confirming the potency of cryptocurrency in our economy and in our lives as well. So far, we can only know that there is some level of government intervention required in this decentralized scheme of things.
Otherwise, it could lead to catastrophic events in the future. Another threat that comes with crypto-investments is that all of the assets are digital and you need to be on a peer-to-peer network to operate the transactions of your digital assets. We all know that it is not too much difficult to access any system or node which is connected to a network. Therefore, you will always be under the constant worry of protecting your credentials.
One has to protect things such as username, password, crypto-wallet login ID and password, private keys, and public keys of your ledger, etc. Anyone who is able to get access to any of these things could be able to make serious damage or loss. The industry is largely based on speculations and people would be doing more gambling than investments. That is what the naysayers have to say about the whole concept of cryptocurrency.
However, if you ask a long-term crypto-investor, he/she would tell you a different story. Investments in cryptocurrencies are more like making educated guesses than gambling. There are a few tricks and tips that only the most experienced crypto-investors know. Everyone has their own way to analyse the market and based on their intuition and instincts, they plan their investments. Similarly, you could become an expert investor once you learn to analyze the market behavior of cryptocurrency.