Why You Should Focus on the Cryptocurrency Market in the Current Global Situation

While the cryptocurrency market has been no stranger to downturns influenced by the current global situation, today’s economic landscape still serves as a reminder of why the cryptocurrency movement blossomed in the first place. In addition, it reinforces why being your own bank is so appealing in the face of uncertainty and instability.

Why the cryptocurrency movement took off

With the overall cryptocurrency market capitalization being in the billions, it can be easy to forget how recent the movement actually is. Cryptocurrencies were first introduced with the advent of Bitcoin, which was outlined back in 2008 by a still-unnamed figure who used the pseudonym Satoshi Nakamoto.

When the network’s first transaction took place back in 2009, Satoshi Nakamoto encrypted an important message into the block: “Chancellor on brink of second bailout for banks.” This message is a reference to a headline on the front page of The Times, which was published on the same day. As such, proponents of the cryptocurrency landscape view this as part of Satoshi Nakamoto’s way of demonstrating his belief that cryptocurrencies are a truly crucial movement.

From their inception, Bitcoin and other cryptocurrencies have served as a condemnation and rejection of the roles that financial intermediaries such as banks played during the Global Financial Crisis. Now, as we find ourselves in another period of economic uncertainty around the world, we are once again reminded of why proponents strongly believe in the autonomy offered by the cryptocurrency market.

Understanding the differences between crypto and fiat

Fiat currencies such as the US dollar can be printed in limitless supply. In fact, during the first year of the pandemic alone, the US Federal Reserve printed more than $3 trillion USD . For context, this is as much as an estimated one-fifth of the total value of US dollars in circulation that year.

As a result of printing money in this way, however, inflation can rapidly decrease the value of a currency. As a consequence, this can cause average people to find that their money is worth far less than it was previously.

In direct opposition to how fiat currencies function, cryptocurrencies like Bitcoin were designed to exist as a store of value with a strictly-limited supply. Only a fixed number of units of cryptocurrencies like Bitcoin and Ethereum will ever be minted. For this reason, cryptocurrencies have long been referred to by proponents as a store of value that functions similar to gold.

When it comes to fiat currencies, their existence in our world largely relies on our use of banks and other financial intermediaries. In order to make a transaction with your debit card, for instance, the merchant has to communicate with your bank. Further still, most people do not store most of their wealth and instead employ banks to do so for them. Cryptocurrencies, on the other hand, exist in a peer-to-peer form that stands outside of the limitations of intermediaries. Anyone who holds cryptocurrencies can choose to store them on their own, rather than through using a centralized marketplace or intermediary.

People are embracing the cryptocurrency market in response to inflation

A significant consequence of inflation is the fact that ordinary people are forced to reckon with the fact that their money has far less purchasing power. We have seen this occur across the globe, sometimes with devastating impacts on how everyday people survive. In Venezuela, for instance, the country’s national currency lost the majority of its value in the span of a single decade, with Retuers reporting that its value decreased nearly 73% in 2021 alone .

In many countries where government-backed fiat currencies have had their value severely diminished by inflation, we often see people treat cryptocurrencies as a necessity. For instance, in countries such as Venezuela and Nigeria , we have seen a widespread embrace of cryptocurrencies.

As it turns out, when people are unable to rely on their countries’ fiat currency to maintain its value, they require an alternative way to pay for the crucial goods and services that allow them to survive. With cryptocurrencies like Bitcoin and Ethereum having a strictly-limited supply, they are able to serve as a store of value that stands outside of the mass inflation that has weakened many fiat currencies across the world.

The importance of being your own bank

Core to the Web3 movement and the ideals that birthed the cryptocurrency movement, periods of global instability and uncertainty show us the value of being your own bank.

Fortunately, cryptocurrencies make it possible to store value in a way that is outside of a reliance on intermediaries. While there are centralized platforms that allow people to purchase and store cryptocurrencies, it is widely agreed that the safest way to navigate the landscape and engage with the cryptocurrency market is to store your digital assets yourself.

You can do so by setting up a device known as a hardware wallet. Hardware wallets allow you to store your digital assets on your own and grant you the freedom and security of being the sole person in charge of your funds. Alternatively you can setup a digital wallet such as Metamask, where you are the only person have access to it and own your funds.

In addition, you can play an active role in keeping cryptocurrencies decentralized and free from third-party pressures by operating your own nodes and staking networks. Through these processes, you are then financially rewarded for helping ensure that the digital currency is able to continue operating safely and securely between peers.

AVADO allows you to unlock the Web3 movement

AVADO is a project that is deeply passionate about allowing people to access all of the benefits of the Web3 movement, including the values that date back to the original intent behind the creation of Bitcoin.

With AVADO, you are your own bank and can play an active role in the governance of both your personal and funds the security of the broader cryptocurrency market. While doing so, you can even benefit from having your own stream of passive income.

Our extensive range of plug-and-play devices makes it incredibly easy to begin operating as your own bank in just a few minutes. With a wide range of device types on offer, our range is perfect for both experienced traders and complete industry newcomers.

Find out more about AVADO by visiting our website today.