The importance of cryptocurrency over country currencies.

Hello friends, I believe that we all are doing good. Today, I wish to onboard another article on the importance of holding crypto over our respective country currencies, and I believe we'll all enjoy reading.

There are 195 countries in the world with 54 in Africa, 48 in Asia, 44 in Europe, 33 in Caribbean and Latin America, 14 in Oceania, and 2 countries in North America.

All these countries have their respective sovereign currencies within their terrains which every of their citizen trades. Nonetheless, it's noteworthy to state that the first world currency (schekel) was traded about 5000 years ago in Mesopotamia and it has contemporarily gone into extinction.

We have the crypto currency on the other hand to be a virtual or digital token which was created in 1990 by David Chaum, but the Bitcoin being the first ever recognized cryptocurrency took a real down in a decentralized form in 2009 after it's creation in 2008 and currently, we have over 12,000 cryptocurrencies in existence from the course of my research.

However, the two currencies above have their actual values as they're all substantial for disparate use, and the question is which of these currencies have a better comparative advantage over the other? I must say it's crypto currency with the following reasons.

Comparative advantage of crypto currency over our respective country currencies.

Inflationary effect

This is one of the reasons people would prefer to hold crypto more than physical cash. There would always be inflation in the physical world which may not be as a result of the volume of money in circulation but rather, other contingencies beyond money at hand and in banks called narrow money according to economic jargon and phenomenon.

Nonetheless, inflation could be caused by lack of productivity, insecurity, war, crises, inadequate government investment through accrued revenue etc. These must always create a direct and negative impact on a country's money value by depreciating its real worth or purchasing power.

Comparatively, inflation does not have direct negative effect on cryptocurrencies because it's price could rise or fall at any time irrespective of war, peace, or market sentiment since it's not also directly controlled by any one, and the datum remains that even if it falls, it must certainly rise.

Interest on savings

Using Nigerian banks as a case study, they pay about 0.15% to 4.2% on savings which is almost nothing compared to the revenue that can accrue from the hold of cryptocurrencies for a season because the bank rates are fixed.

Let's work this out in integers using Bitcoin. For instance one buys Bitcoin at the rate of $13,000 and sells at $20,000 at its over valued price.

On the other hand, Bitcoin goes bear and consolidate at $13,000 and the investor buys and then sell at about $25,000 again, he has made about $19,000 as profit, if this should occur twice a year, which I know it does happen more than twice a year.

Workings:

$20,000 - $13,000= $7,000 $25,000 - $13,000= $12,000 $7,000 + $12,000= $19,000 So this investor made $19,000 for investing in crypto for the year.

Contrarily, assuming that one has the same $13,000 and wishes to save it in the bank, at the rate of 4%, he'll be making $520 in a year.

Workings:

$13,000 * 0.04= $520.

Finally from the above comparison and deduction, it is obvious that an investment in crypto is far more better than investment in our country currencies using our local banks.

Loosing ​country's currency through insecurity.

Most of us have had experience of loosing our funds through robbery and armed men, this is as a result that we have exactly what rubbers can easily liquidate without much protocols even the money in banks are also vulnerable and can be sapped by robbers in most ocassions.

On the other hand, no one can dare your crypto without access to your keys, which makes your crypto safer than the country's currency.

Conclusion

The bulge of cryptocurrency over the different country's currencies can not be over emphasized as I have lucidly stated some of it's momentous datum above, which emphatically and obviously remains pukka at all instances and spheres despite how most country's governments use to blackmail it to their advantage. Thanks for patiently going through my review for today, love you all bye.