With any new technology or concept, it is inevitable to have trouble building trust. Think of the internet warnings in the nineties. Or the people who worried trains went so fast women shouldn’t ride them. Or imagine the caution when someone proposed switching from quill to pen. When new concepts emerge, it is normal for them to be examined and adopted cautiously and slowly. Bitcoin and other cryptocurrencies are no exception.
With its recent astronomical rise in adoption, it’s easy to see why people have become more accepting about Bitcoin and other cryptocurrencies. But many are still wary. A majority of worry comes from a lack of understanding – people don’t typically trust something they don’t know. But once you get past the hurdle of the unknown, it is easier to see why Bitcoin owners are so invested in it.
Why Are People Cautious of Bitcoin?
Cryptocurrency can be worrisome for people and governments alike – with some entities even working to ban all forms of crypto. And to top it off, people are always extra cautious (rightly so) when it comes to their finances. All of this – along with the overall hesitation to adopt new technologies – adds up to a lack of trust in Bitcoin.
But really, it all comes down to not fully understanding Bitcoin. Digital money can seem far-fetched and unsecure. On the surface, it seems smarter to keep your money in the physical sense where you can see it as opposed to keeping it in digital format.
Cryptocurrency can be a complicated subject. Many do not understand or aren’t concerned about how blockchain verification works, let alone what yield farming is. The less a person knows about a technology (especially financial), the more wary they will be towards it. Put simply, we’re wired to keep ourselves and our finances safe. When something is unknown or unfamiliar to us, it is common for us to be cautious of it, for good reason.
But when it comes to Bitcoin, there’s good reason to trust it!
Why Should People Trust Bitcoin?
Bitcoin is Secure
Since it was created in 2009, the Bitcoin blockchain has maintained complete security. The blockchain is a public digital ledger that stores all data from any bitcoin transactions. Ethereum and other cryptos utilize blockchain technology as well. Blockchain technology is known for its unparalleled security and safety.
That being said, Bitcoin can sometimes be associated with scams. While the network is secure, that doesn’t mean bad actors can’t get the info they need. You may have an impenetrable safe, but a robber can still open the door if they get the code. This is why it is important to always stay alert for common Bitcoin scams. In addition, make sure you always keep your wallet keys safe, and only send Bitcoin to people you know.
Bitcoin Increases In Value
Bitcoin is the best-performing asset of the last decade. Since its creation in 2009, it has seen steady, almost consistent growth. In the United States stock market, Bitcoin performed better than any other asset over the past decade, with an average of 200% annualized returns.
Bitcoin is Open to All
Cryptocurrency makes investing easier for everyone. Decentralization opens up investing to everyone. Unbanked and underbanked individuals can build their portfolios easier. Additionally, since it isn’t controlled by a central agency, cryptocurrencies aren’t subject to exchange rates or tariffs, and neither are the international products purchased with them.
Many governments are fearful of the effects cryptocurrency can have, especially since it takes away their monopoly over manufacturing currency. According to Matthew Sigel from VanEck, “the rest of the world is seeing value in the second source of monetary sovereignty,” and until governments actively work to integrate crypto, people can take advantage of a more diversified financial setup.
Final Thoughts on Trusting Bitcoin
It’s easy to initially be cautious of Bitcoin and cryptocurrencies until there is a greater level of understanding of the industry. However, there can be significant rewards for early adopters of technologies that are as revolutionary as cryptocurrency.
Utilizing trusted companies like Coinsource to enter the world of crypto can help you feel just as confident – if not more so – than you do when banking with a traditional currency. Ready to learn more about cryptocurrency? Here are 10 things you must know before investing.
Coinsource is the world leader in Bitcoin ATMs. With a focus on compliance and ease of use, Coinsource is aiming to bring Bitcoin to the masses. Follow for blogs about Bitcoin, finance, company updates and Bitcoin ATM information!