Why You Might Be Investing in Cryptocurrencies Without Knowing
Cryptocurrencies have gained mainstream acceptance and the rise in popularity has encouraged individuals to contribute to the crypto ecosystem.
Although most are actively participating in the industry, others may not be mindful that they are directly involved. Below, Finance Monthly gets the lowdown on crypto investment from Adrian Thompson, Global VP of Marketing at Sapphire Technology.
More people are starting to understand the benefits cryptocurrency has with its ability to reduce the risk of fraud and offering scalability. Fraud is one of the main concerns when it comes to the financial space and because digital currencies are transferred through blockchain all transactions are recorded and therefore secure. Another advantage of cryptocurrency is that it is safer when transferring internationally. Carrying cash, credit or debit cards can be risky and with the use of cryptocurrencies, exchange and transaction fees can be reduced. This being said, these benefits may not be known by some people and in extreme cases, some are not even aware that they are directly involved in the crypto sector.
Being associated with the cryptocurrency industry doesn’t necessarily mean that you have to purchase cryptocurrencies, it could be that someone works on a mining farm or manufactures mining rigs. There are said to be 114 countries around the world that have mining farms, mostly located in cold countries, with China being the leader in mining. They are positioned in remote surroundings due to the high volume of electricity being generated and the heat they emit. These mining farms are directly linked with the cryptocurrency industry, working to solve problems and accepting transactions. They are thought to be the most secure and stable methods of operating blockchain. The mining farms provide hundreds of jobs and is a profession that requires a certain amount of expertise to ensure that the computers are running smoothly and prevent any hacking. Many employees are required to work long hours, night shifts and usually live on site. Whilst these employees might not be actively exchanging cryptocurrency, they are a significant part of the ecosystem that keeps the industry moving forward.
Manufacturing mining rigs is another way people are involved in the cryptocurrency industry. These manufacturers may not be following the market on a daily basis but are usually aware of what is required to mine coins and are experts when it comes to creating the rig in order to mine.
In the past, home computers were adequate to mine cryptocurrency. However, today specialised hardware is required and that is where these mining rigs come into play.
Built for both personal and commercial mining, these rigs are made up of graphics cards, a power supply, a processor, cabling, memory and a cooling fan. There is a fierce competition in the mining sector and producing the best is always a top priority. Additionally, the emergence of stronger and more powerful machines are ever evolving, meaning staying ahead of the competition is a must.
In addition to individuals unknowingly contributing to the growth of the sector, numerous different industries are associated with cryptocurrencies in some way or another and assisting with the development of the space. . For example, cryptocurrencies are founded on the basis of transforming the financial space and therefore it’s not surprising that this is the sector it is most established. Those that work within traditional finance are most likely aware of the trends in the crypto space leading to financial and banking services adopting cryptocurrencies and incorporating them within the sector.
The market for cryptocurrencies has increasingly grown in recent years and has created a financial evolution. These digital currencies are able to help erase unnecessarily high-interest rates and can cut out the middleman associated with traditional currencies, helping to save money.
Another sector that can benefit from cryptocurrencies and becoming increasingly involved in the space is real estate which holds similar benefits there are within the financial space, in terms of reducing costs. In real estate, bookkeeping costs can be kept to a minimum with cryptocurrencies and sellers are able to transfer large purchases easily and efficiently.
What was once a buzzword for crypto enthusiasts has now become a mainstream entity. Despite critics weighing in on the viability of cryptocurrency, it is without question one of the fastest-moving industries with developments and discoveries made on an almost daily basis. With cryptocurrency continuing to establish itself within various sectors, we will undoubtedly find more and more people who will become indirectly involved in this transformative and exciting industry.