OPINION

Cryptocurrency as a Hedge Against the Declining Dollar

Bitcoin and the U.S. Dollar

Whether you want to embrace it or not, the money evolution is well underway. It’s taking us from paper bills to all sorts of digital currencies and bitcoins.

We didn’t just get to cryptocurrency and digital wallets overnight.

The digital transformation in finance started back in the 50’s when credit cards first came on the scene, allowing money to be transacted with the simple swipe of a piece of plastic.

Next, before we knew it, e-commerce solutions entered the marketplace. This not only heightened the ability to facilitate millions of dollars across online channels, but it created a platform for borderless transactions that now impact enterprises around the world.

Although society has engaged in digital finance for years now, there are still people who fear crypto and can’t quite let go of the traditional American dollar. For them, it’s the only tangible way to show the value of their money. However, regrettably, trends show that the monetary value of the precious dollar has now been declining for years.

Who could fathom the decline of the dollar and the rise of new currencies? During the pandemic the U.S. dollar was down 10 to 12 percent relative to America’s major trading partners; its weakest levels since early 2018. In addition to the pandemic other events contributed to the decline, such as the financial crisis and inflation. While the dollar remains the most stable currency in the world, its position is being challenged.

Cryptocurrency Advantages

As the dollar weakens, the rise of digital currencies seems to be accelerating. Early adopters of bitcoin have been reaping some of the benefits, despite the turbulence that the currency has had to endure over the years. Its pushback doesn’t seem to outweigh the benefits.

For example, consumers can enjoy little to no transaction fees when using crypto. Also, 160 countries around the world accept bitcoin, making it easy to send money overseas. Not to mention, thousands of crypto ATMs are starting to saturate the marketplace, making bitcoin transactions more accessible than ever with daily limits as high at $21,000 per day.

Regardless of all the buzz and activity around crypto, some demographics are still just not ready to veer away from what’s familiar. Even though there is apprehension, many still understand that things are changing and that they must get on board or be left behind.

Furthermore, since the industry is on the brink of a financial revolution, it’s imperative that consumers are provided with knowledge and training from cryptocurrency providers. No one should be exempt from reaping the benefits that the world of digital monetization has to offer.

Once many see how accessible and user-friendly it is, they’ll be more excited to get on board. There are many innovative companies changing the way financial activity is conducted. It’s vitally important that consumers seek them out, as well as research the best digital currency providers and products that fit their risk level and financial needs.

For those who are not prepared for the paradigm money shift, it could result in a harsh wake up call. Especially if they believe that the dollar is the world’s only premier global currency. With the current yearly decrease in the value of the dollar, it’s only wise to be proactive in securing financial health.

With this in mind, here are some ways to move to digital money:

Start by Making a Small Investment

Bitcoin is taking a commanding presence. It’s a financial asset that is buzzing and for good reason. It has become the world’s most popular cryptocurrency, with currently over 81 million users and over 270,000 transactions per day. Out of those users, there’s a huge population enthusiastic as a result of unthinkable profits.

Investing small amounts is a nominal risk that could yield large gains in the future. The dollar passes from hand to hand never knowing who had it last. Every bitcoin, on the other hand, has its entire history visible on the blockchain. This means funds can be tracked. Additionally, strong cryptography makes it virtually impossible to manipulate this ledger.

In short, the Bitcoin blockchain is one of the most secure systems on the planet, if not the most secure.

Get Familiar With Crypto Platforms

Knowledge is power. When it comes to the digital space, it’s power to profit.

There are a variety of platforms which allow you to store and trade cryptocurrencies. Understanding each is critical to aid in discovering the best and most secure for you or your business.

When making the decision, there are key factors to consider. For example, how frequently you’ll be trading or how much money you want to secure. By answering these questions, you gain insight into what platform best suits your needs.

Talk to Others, Hire a Coach

Becoming educated about the fundamentals of digital currency will help to set your mind at ease. There’s a lot to learn, and crypto is continuously evolving.

Sitting down with someone who has purchased, used, and even traded cryptocurrency will help accelerate your progress. Those that have walked the road before you may have made mistakes they learned from. You won’t have to repeat the same mistakes, so you’ll be a step ahead.

Recently, many of us experienced a financial shakeup we didn’t see coming as a result of the pandemic. Proven to be resilient, the world is dusting off its shoulders from the fall. Moreover, we are slowly watching the redefinition of the dollar take place before our eyes.

This is the time for us all to prepare for the new financial movement that is about to transform the world. Thankfully, there are innovative companies positioned properly in the digital-currency space. They are here to help as we all transition into the future of money.

It’s important to relinquish fear of the unknown and become knowledgeable. There are numerous ways to do so. Whether that’s talking to a friend, doing your own research, or starting small with wise investments.

Everyone has the opportunity to ensure their financial stability in the future. Don’t wait for the fall. Make sure you have a variety of financial assets and capabilities in place in case the dollar does come crashing down.

The opinions expressed in this article are those of the author and do not necessarily reflect the views of ECT News Network. Investing involves risk. Please consult with your attorney, accountant, and/or tax advisor for advice concerning your particular circumstances.

Lee Hansen is CEO at Byte Federal, a fintech provider of crypto ATMs with a network of thousands of kiosks. As an entrepreneur he has launched companies, acquired millions in funding, developed software, authored patents, and innovated several business solutions.

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