Why cryptocurrencies are so popular

Cryptos are so common for many reasons. Undoubtedly, the biggest explanation for their success is the fact that they are unprecedented. There was no exact definition of crypto or virtual currency in the form that we know it today, a little over a decade ago. Their potential is the thing that has pushed them to the excessively high prices they are worth, as they are seen by individuals as highly promising future initiatives.

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Risk Factor

Poker players are one demographic that seems to have adopted cryptos. The multi-bracelet winner Phil Hellmuth is perhaps more known for his blowups than his real poker skill, heavily involved in cryptocurrencies. Another high-profile pro who has supported and revealed his endorsement of cryptos is fellow colleague Doug Polk. These are only two cases, so why is this the case?

The main explanation for this is the risk-and-reward factor. Cryptos are known for being highly unpredictable and vulnerable to high (mainly) price rises. Combined with the fact that poker is an exciting game frequently played by pros at high stakes, this excitement matches when buying cryptos, as it is possible to enjoy similar high wins as seen in poker.

Security

For being encrypted and almost unhackable, Bitcoin and its Bitcoin wallets are legendary. Many individuals have fallen victim to theft from their bank accounts or other online funds by hackers. People have the firm sense of security when using these encrypted wallets to store currency in the form of cryptos, as there is no physical money to steal. There are only virtual wallets that appear to be unhackable by many companies.

Anonymity

Another advantage of crypto on the security level is that it's almost all anonymous. There is no name behind the number or identifying information because every transaction is just code. Again this ensures that no data can be compromised.

This is less important for the average user, but this is a vital feature of cryptos for people who are considered to have a lot of resources, and something appealing. For example, celebrities are targeted a lot as hackers know they'll have cash. Cryptos keep their identities concealed.

Bitcoin enjoyed exponential growth for years until the “bubble” finally burst.

Trading

Another category of individuals who usually like cryptos are traders. This again is due to their instability. As they're not a tangible currency, their entire life and power comes from the importance of people as something you can buy stuff with.

That means that they are highly vulnerable to exogenous variables and news that can dramatically alter the value of cryptos by individuals. A valued, intellectual economist would be an example of coming out and endorsing cryptos, which would have a subsequent effect of raising confidence in them and thereby increasing their value.

References

David Jackson, 2020. “Why Are Cryptocurrencies So Popular”, https://www.feedster.com/uncategorized/why-are-cryptocurrencies-so-popular/

TheCork.ie, 2020. “How Cryptocurrencies Became So Popular”, https://www.thecork.ie/2020/08/03/how-cryptocurrencies-became-so-popular/

Anuradha Garg, 2020. “Why is Cryptocurrency Important?”, https://marketrealist.com/p/why-is-cryptocurrency/

Oliver Rudstedt, 2019. “Why are Cryptocurrencies So Popular Among Certain Demographics?”, https://toshitimes.com/why-are-cryptocurrencies-so-popular-among-certain-demographics/