Let’s talk about Crypto!

Crypto is all the rage these days; be it the biblical rise of Bitcoin over the last decade, or the Dogecoin zipping its way to the moon despite being touted as a joke in the beginning. NFTs are all what people seem to be talking about, and we’d like to shed some light on the mystique surrounding this novel, yet controversial piece of tender.

Cryptocurrency in its most basic of terms, is currency, plain and simple. Except, there isn’t anything quite that simple about it. For a start, it does not have a centralised authority maintaining it, unlike the US Dollar or the Yen, which have the legal backing of their respective nations. There aren’t a lot of restrictions in place and the wealth earned by owning or trading in cryptocurrency is shrouded at best, and is at a risk of volatility unlike other currencies or even equity.

There are two schools of thought regarding crypto. One, where the supporters believe it’s a currency of the future, and will soon replace mainstream currency, because of its blockchain security and the fact that the lack of Central Government intervention means being free from wealth erosion via tools such as inflation. The second group are quite the opposite. They see crypto as a mere blip, and speculations rather than investments. They subscribe to the ‘Greater Fool Theory’, wherein the person willing to buy the currency off you, needs to pay more than you did to procure it. Money keeps changing hands until factors such as instability and the fact that there are no cash flows, inevitably lead to a bubble-burst.

Be what may, there is no hiding that crypto has seen a meteoric rise in recent years. So much so that the hacker-group Anonymous even threatened Elon Musk about his tweets relating to it! It’s no secret that where there is crypto, there is volatility, and we’ve been getting a masterclass reminder of that by Musk’s tweets, and the command they have on their price, chiefly Bitcoin. He’s promoted it, worshipped it, and most recently renounced it, and all these movements have had pronounced effects on the price action.

With over 10,000 publicly traded cryptocurrencies, it stands to reason that they’re here to stay. Their legality, however, is a different question altogether. It chiefly depends on the countries in which they are traded and their discretion regarding them. China, for example, has come down pretty hard on the holding and trading of Bitcoin, whereas several firms in the US have openly welcomed it as an accepted form of currency. Cryptos are slowly making inroads into mainstream buying and selling transactions and with the absolute ball they’ve been having, their future appears to be mysterious yet exciting.

The details around crypto are highly complex, and fairly new. So, it may be a better option to have some expert advice on them. Want to speak with companies where crypto is now legal tender? Considering investing in Bitcoin? Want expert advice before your company starts dealing in crypto? Look no further! Reach out to us at Zintro, and we’d be happy to set up expert calls with Industry leaders!