One of the first fun facts to note about crypto is universality and price homogeneity. The price of bitcoin in Asia is the same as the price of bitcoin in Africa. So, it doesn’t matter where you buy bitcoin; the price remains the same.
So, you need not worry about your holdings becoming negative when you get payments from around the globe. This is one of the main reasons crypto is regarded as the best payment method for cross-border transactions, irrespective of the amount or the distance between both parties.
The truth about cryptocurrency is that its adoption rate differs from country to country. For instance, the rate of crypto adoption in Africa is about the second largest because more cities and countries in Africa tend to believe in the crypto scheme.
Bitcoin, the father of cryptocurrency, has existed since 2009 and presently is worth about $20,000 a piece, which started trading for less than one dollar. Presently, a dollar in 2009 is still a dollar, but one bitcoin in 2009, is not the same in 2022. The price volatility of the crypto community is largely significant.
Bitcoin, as a case study, is currently trading around the $20,000 mark and has gone as high as $64,000. This means that investors that bought while it was at the peak and still have it until presently are about -70% down, and there’s the possibility of more reds.
So, in the crypto community, nothing is promised; hence one of the core reasons why it’s advisable to trade with caution and ensure you only trade with what you can afford to lose.
The impact of price volatility on the entire crypto community is one of the reasons why some crypto analysts have tagged it a scam or Ponzi scheme like many others. However, the question now is, is crypto good for your city?
Why should a city adopt crypto?
There are more than one reason cities should look into adopting crypto in their communities. However, before this could happen, there needs to be proper sensitization of crypto and how it could benefit the entire city.
Once this is achieved, it becomes easier for it to go around. However, here are some of the few reasons why most cities should look into crypto adoption.
Helps startups improve their businesses
In a city, what you’ll find most are startups and other minor business enterprises. One way for the startup to grow rapidly in both their number of customers and revenue is by sourcing means to improve their transactions and increase outputs.
One way to achieve this is by adopting crypto. With crypto, startups could have business networks all over the globe while still being considered startups.
Just because a company or a business started a few months ago doesn’t mean it can’t go viral. If you need your city to grow or are looking for means to help your city improve in all areas, start by ensuring startups invest in cryptocurrency.
Opens the city to investors and more investments
One thing to note is that there’s a difference between well-known cryptos like bitcoin, Ethereum, and government-backed cryptos. As explained earlier, there’s more price volatility in the former than in the latter.
However, this price volatility could be all your city needs to attract investors. When a city invests in crypto, they are opening up the city to investors and citizens to invest in the city. With this, the city develops simpler and more effective means to fund projects they might previously be unable to fund.
With more investors with shareholders in the city via a mutual currency, the city will not only enjoy more infrastructural standards but also help build more investors among its citizens.
Helps to acquire municipal bonds
With cryptocurrency, municipal bonds had to be invented at some point in history; it’s going to the next level. Your city investing in crypto would mean an easier means of acquiring municipal bonds for building affordable housing, supporting social activities in the city, and reconstructing transit systems, amongst other social amenities.
This will be in the form of a non-profit vehicle meant to fund social goods and infrastructures. These tokens will be digitized and act as security instead of being a speculation tool.
To fully ascertain if crypto is good for your city or not, you must first understand why crypto needs to be adopted in the first place. Once the question is answered, then adoption could fall in that line, and you can be sure of a successful crypto run.
