When you think about securing your financial future in the long-term, some of the options that usually come to mind include real estate, stocks, gold and other assets. However times are changing quickly with the emergence of a new investment asset class: digital assets.

Digital assets are what we know as cryptocurrencies and NFTs. It has become a new asset class that has attracted several investors. A CNBC report showed that more than half of millennial millionaires hold 25% of their wealth in cryptocurrencies.

So what gives? What is attracting people to cryptocurrencies? Why should you invest in them?

Find out in this article.

Inflation Hedge

The amount of some cryptocurrencies is capped. That means that there is a specific number that is available to mint. When that number is reached, there is no more. Bitcoin acquired the nickname “digital gold” because of this feature, which makes it deflationary.

When you invest in crypto, you do not have to worry about the possibility of a bank printing more Bitcoin, which would reduce its value.

But not all crypto holds its value, so you should do your due diligence before investing in order to ensure that you choose one that has a limited supply.

Decentralization

Are you tired of middlemen? Cryptocurrency removes the need for middlemen in transactions. This allows people to transact directly with each other through a peer-to-peer system on the blockchain.

This helps eliminate unnecessarily high fees and transaction processes that users encounter with banks. No more long cues, paperwork or long waits. Moreover, transactions with family, friends and businesses or organizations are faster and more transparent.

Store of Value

Cryptocurrencies are infamous for their volatility. There is a category of cryptocurrency that is changing the way people view their capability to store value: stablecoins.

Stablecoins are pegged to fiat, and are gaining traction due to crypto rewards cards and digital DeFi wallets. These coins allow users to transact with each other faster than before. Additionally, they can also be used to transfer money between gamers in digital worlds, like Splinterlands and Skyweaver.

This doesn’t mean that users cannot use another crypto as a store of value. By storing your crypto on a hot wallet or cold storage device, you can keep it until you want to use it in the future.

Earn Passive Income

You can earn passive income through holding DeFi positions. DeFi investors can earn interest by lending, staking, trading and pooling their cryptocurrencies.

You will not earn similarly across platforms. If you choose to stake leading cryptocurrencies, you can expect to earn between 3% to 14% APY. If you are looking for higher interest rates, you should consider yield farming.

Future Use

Digital assets are not just for the blockchain, they are making waves in the real world too. Several industries, including healthcare, supply chain, charities, ticketing and retail are jumping onto the blockchain train.

In May of 2022, Gucci, one of the most popular luxury brands globally, started accepting cryptocurrency in its stores in the US. Major brands like KFC, Walmart and Nike have also made investments in the blockchain, including NFT and metaverse projects.

Finally, blockchain gaming is becoming a significant prospect. It is responsible for at least half of all blockchain usage, and it generated $2.32 billion dollars in sales in the third quarter of 2021.

The blockchain is making a case for real world use industries because it offers security, transparency and privacy.

Mitama & Cryptocurrency

Mitama believes in the power of blockchain technology to foster real world value. Through the use of NFTs on the Ethereum blockchain, we allow our investors (who may not know too much about the blockchain space) to invest safely through our unique project.

By investing in a Mitama NFT, you get a digital asset that is a store of value and which can grow over time. Our aura NFT feature shows when your NFT has reached a higher price point.

Additionally, the use of funds by charities is safely recorded on the blockchain for all investors to see. This allows investors to decide, through the DAO, whether a charity is using their proceeds efficiently or if the DAO should continue to allocate funds to that specific charity.

Mitama makes use of many of the benefits provided by cryptocurrencies. It provides the opportunity not just to hear, but to participate in using blockchain technology, now and in the future, in order to make the world a better place.