A post for folks that don’t get or don’t care about crypto!
Cryptocurrencies like Bitcoin have become household topics in Canada. Learn why Canadians are choosing to buy crypto here!
Why Canadians are Turning to Cryptocurrency in 2021
You’re probably reading this blog trying to understand all of the fuss. Bitcoin, dogecoin, and ethereum have become topics of conversation in circles everywhere from newsrooms to pubs.
And over the last few years, cryptocurrency has become easier to access for regular folks than ever before.
So why do we think Canadians are turning to crypto now, in 2021? And why should you care?
Wrong answers only:
- It’s cool to be involved in a hot new trend
- Elon Musk won’t shut up about it (or anything, really)
- The news keeps reporting on bitcoin and we all hate FOMO
Right answers, this time:
- Crypto is demonstrating groundbreaking alternatives to our financial processes
- Crypto isn’t attached to a central or governmental bank
- Crypto is here to stay
Crypto is Redefining Finance
One of the reasons crypto has made such a splash is how it has demonstrated an alternative to the current global financial system.
Currently, the global financial system is characterized in part by its opaqueness—and by fees. When we use big banks, it’s not always obvious what’s going on behind the scenes. Our money is stored, out of our hands, behind the closed doors of the banking system.
How banks work, how they use our money, and how they design fee structures is largely kept out of view. But we don’t really have another option. We have to rely on banks to act as trusted third parties for things like our electronic transactions. This is what Satoshi Nakamoto meant when they described our financial system as a “trust based model”.
Banks also charge us fees—sometimes a lot of fees, actually. Who needs it? Well. We do, still. But crypto is making the case for an alternative.
Crypto is different. Because crypto operates and is traded within a public ledger called blockchain, there’s no trust needed. The blockchain is accessible and visible to everyone, so you can always account for every single unit.
No more cashing cheques that your bank then holds, inexplicably, for three weeks. Just plain, transparent, completely accountable blockchain.
Crypto is Free of Governmental Control
Crypto is also completely unaffiliated with any government or central bank. This means, in part, that crypto can be volatile—there is no guarantee it will retain its value like there is (more or less) with governmentally sanctioned legal tender.
If the volatility doesn’t put you off, though, this relative freedom from political influence is a top selling point for many crypto users.
This makes crypto kind of like the digital version of burying gold in your backyard (but gold isn’t as volatile as crypto).
Crypto will always retain independence from governments and central banks. However, if a government chose to clamp down on crypto with unwieldy regulations or new laws, it could impact the crypto’s value.
Crypto is Here to Stay (at least, we think so!)
Canadians are also turning to crypto because it has demonstrated remarkable longevity. In bitcoin’s early days, for example, it was considered an asset designed by and for super-online basement dwellers.
But today? Banks and governments all over the world are working to take part in the crypto craze. The Canadian government has specific regulations for taxing crypto; the Bank of America considers crypto to be cash equivalent; and a few weeks ago, El Salvador moved to recognize bitcoin as legal tender.
Look, ultimately no one can predict what the future of crypto holds. It’s volatile, yes, but somehow, it’s still around.
Whether or not you choose to invest in something like bitcoin is entirely up to you. But if you are interested, we can show you a way to invest in bitcoin without ever spending a cent of your own on it.
Canadians Can Earn Bitcoin with Mogo
We’re big fans of bitcoin and the potential of cryptocurrencies here at Mogo.When you sign up for a MogoAccount and download the app, you can buy and sell bitcoin right from the Mogo app! It's the easiest way to start trading bitcoin.
This blog is provided for informational purposes only, is not intended as investment advice, and is not meant to suggest that a particular investment or strategy is suitable for any particular investor. If you’re unsure about an investment, you may wish to obtain advice from a qualified professional. Nothing herein should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Buying and selling bitcoin is risky and you may suffer losses. The price of cryptocurrencies, including bitcoin, are highly volatile and speculative and so you should never invest more in cryptocurrency than you can afford to lose. It’s also important to remember that past performance is no guarantee of future results.
*Trademark of Visa International Service Association and used under licence by Peoples Trust Company. Mogo Visa Platinum Prepaid Card is issued by Peoples Trust Company pursuant to licence by Visa Int. and is subject to Terms and Conditions, visit mogo.ca for full details. Your MogoCard balance is not insured by the Canada Deposit Insurance Corporation (CDIC). MogoCard means the Mogo Visa Platinum Prepaid Card.
1-Bitcoin Cashback is a component of Mogo’s Rewards program. To be eligible you must have: (i) a Bitcoin & Rewards or MogoCrypto account; and (ii) the Mogo Visa Platinum Prepaid Card (“MogoCard”). Eligible MogoMembers will earn 1% Bitcoin Cashback on Canadian currency purchases (or 2% on any domestic purchases made on or after June 1, 2021) and 2% Bitcoin Cashback on foreign currency purchases. Bitcoin Cashback is earned monthly and based on all eligible purchases made in the preceding month. Mogo will determine the eligible 1% or 2% in fiat and will convert that fiat to satoshis according to the Satoshi Conversion set out in detail in the MogoAccount. All decisions regarding the conversion to satoshis by Mogo are final and binding. Additional eligibility requirements, transaction exclusions, and other terms are set out in full in the MogoAccount Terms and Conditions, which may be changed or terminated at any time without notice, see: https://www.mogo.ca/terms-and-conditions. Mogo cannot guarantee that the value of your Bitcoin Cashback will increase. If the price of bitcoin decreases then you may lose some or all of the value of your Bitcoin Rewards.