The history of money in America is very interesting.
When the country was first formed, it was created by a set of documents known as The Federalist Papers. This document enabled each and every state in the Union to print their own money. Find out more about this document here.
It wasn’t long before the founding fathers saw the error of their ways. With each state creating its own currency, it was difficult, time-consuming, and expensive for citizens to travel between any two or more states.
It was one of the things they changed when they ripped the document up and started all over with the set of governing laws we now know as The Constitution.
From that point on, there was one monetary system for the entire country. This decision made America feel more like one united nation than a series of loosely connected states.
At that point in our history, each and every dollar printed was backed by gold that was located in the Federal Reserve. If there was no more gold, there was no more money printed, end of the story. Click the link: https://www.gold.org/history-gold/the-classical-gold-standard for more information about the gold standard.
But we are a nation that keeps on growing. Eventually, it became necessary to print more money in order to meet the growing needs of our bustling population.
The switch away from the gold standard was hard-fought by the day’s politicians. That is because, at the time, it was hard for them to imagine how a currency without a physical backing could be secure.
Fast forward a hundred years or so, and you are ready to take a look at the rise of cryptocurrency. In this article, we are going to take a look at this new, exciting form of investment.
Look Online
The first thing you may not know about cryptocurrency is that you need not ever see a physical token to represent your wealth.
That’s because cryptocurrency is really located entirely online. Instead of being represented by a coin or a bill, the actual currency is only made up of the same components that make up the words you are reading right now.
That is right, it is a binary-based medium for trade. Bet you never thought you’d see the day that became normal, did you?
No Governing Body
The second thing you might not have known about crypto is that it isn’t regulated the same way that other currencies are. Instead of a centralized bank or a government system to ensure that it stays secure, it is instead subject to the whims of the internet.
While some might appreciate the opportunity to step outside of the constantly fluctuating United States economy in order to make their investments, others might be scared of the hands-off approach that the government takes.
Unlike a regular bank account, your cryptocurrency is not protected by the FDIC, which stands for Federal Deposit Insurance Corporation. Click here for more information about this company.
A Happy Medium
For those investors who are looking for something sure to gain in value but also seeking some kind of security, there is a middle ground between the two.
You might be interested to know that there are companies who are willing to help you invest in cryptocurrency as well as ensure its security – for a fee, of course. One way to do this is to invest in a crypto individual retirement account, such as the one BitIRA offers.
What does Crypto IRA do?
You may already be familiar with the concept of an individual retirement account. That is because many companies offer it as a part of their compensation package. This is a special account designed to help you save for your retirement.
While a traditional IRA deals in standard American money – you know the stuff, dollar bills and quarters and such – a crypto IRA functions in much the same way. In fact, it may even be possible for you to roll over your existing account into a crypto IRA.
This option offers the best of both worlds. While American currency is devalued year after year by a process called inflation, cryptocurrency is not tied to the market in the same way.
Quite the contrary; this form of money isn’t constantly being printed. The total number of available coins is capped, meaning that as time goes by and demand increases, so will the value of your investment.
By utilizing a third party, you ensure that your investment is kept offline in an area guarded around the clock by trained professionals. There is no way for anyone with any amount of computer knowledge to get at your savings.
For many, it is simply the fear of the unknown that keeps them out of the digital market. Perhaps having a trusted advisor by your side is all the invention you need to jump in!
Repetitive Tasks? Let make.com Automate Your Workflow Fast
make.com lets you connect apps and automate tasks visually whether you're managing a business, building a side hustle, or just tired of repetitive work.
No matter how complex your business is, make.com Pro plan is designed for those who need a low-code workflow automation solution. Get a month of the Pro plan for free including 10,000 operations/month.
The Ideas Plus Business Editorial team is responsible for this post. For collaborations and partnership requests, kindly send an email to the Editorial Team at ideasplusbusiness[at]gmail[dot]com for the terms and conditions. You can also follow IdeasPlusBusiness.com on Twitter here and like our page on Facebook here.