What Are You Doing With Your Life? Promising future of Central Bank Digital Currencies, & How to Invest in Crypto Without Buying Coins
One Humor: Three Opinions: Two Thoughts
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What Are You Doing With Your Life? The Tail End
Wrapping your mind around your life is pretty hard because you are up to your neck in it. It's like trying to understand the ocean while learning how to swim.
On most days you are busy just keeping your head above water. So it is not easy to figure out what to do with your life and how to spend your time. There are a million distractions. Your family, friends, and romantic partners, boring work, and exciting projects. Video games to play and books to read.
And then there is your couch that somebody needs to lie on. Itâs easy to get lost. So let us take a step back and take a look at your life from the outside.
The digital currency has so far managed to emerge as one of the strongest flavors within the current financial market. What makes digital currencies different from all their predecessors are the tremendous new functionalities they promise to offer. Itâs the financial equivalent of the leap from postal service to email.
Money basically performs three functions. As a medium of exchange, it enables transactions that otherwise would require difficult bartering (as in trading chickens for a car).
As a unit of account, it allows one to know whether one has saved or not over the past year. And as a store of value, money enables current income to finance future purchases.
According to the IMF, the opportunity for Central Bank Digital Currencies (CBDC) depends solely on its ability to improve upon these three core functions of money.
Source: Promising future of Central Bank Digital Currencies
The easiest way to get investment exposure to crypto without buying crypto itself is to purchase stock in a company with a financial stake in the future of cryptocurrency or blockchain technology.Â
But investing in individual stocks can bear similar risks as investing in cryptocurrency. Rather than choosing and investing in individual stocks, experts recommend investors put their money in diversified index funds or ETFs instead, with their proven record of long-term growth in value.
âBelieve it or not, most individuals with a retirement plan or an investment portfolio allocated in an index fund already have some exposure to crypto,â says Daniel Johnson, a CFP with ReFocus Financial Planning.Â
Source: How to Invest in Crypto Without Buying CoinsÂ
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See you soon
Piyush Kamal
Ex-IRS, Economist, and a Published Author who loves to play at the intersection of Neuroscience, Cognitive Psychology, and Philosophy.
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