Have you ever wondered if cryptocurrencies could earn you a living? No, not by writing on Steemit. Steemit can earn you a living if you continue writing, but what if need to keep on writing, then that is not financial freedom. What I am talking about is by enabling your wealth to earn for itself. Is that possible? Let me walk you through some possible scenarios.
What is financial freedom
Let's start off by quickly understanding financial freedom. I've written about this multiple times, so I don't want to take too much of your time. Financial freedom is freedom that comes from not having to worry about working for a living. For most that means that you get a steady income irrespective of what you do. It is also good to notice that it isn't beneficial to talk about financial freedom in its strictest term (no work at all), you might still have to manage your wealth, but that is a very minimal effort.
Investing in real-estate
Getting to the actual point. I'll start with a surprising possibility to become financially independent with cryptocurrencies. That is buying real-estate with cryptocurrencies. This one to my understanding is actually possible already. Some rare real-estate businesses are selling real-estate for cryptocurrencies. And how does that help you? Isn't it obvious?
Investing in real-estate is one of the best known ways of earning a monthly income from investments. The way you would do it is of course by renting out your apartments, houses, or other properties for a monthly fee. People pay you rent, you profit. Of course real-estate investing comes with rather much management, depending on how lucky you are with those who rent it.
I won't be talking much about how you come up with enough cryptocurrencies to acquire enough real-estate, but lets just imagine you invest fiat into cryptocurrencies now and in some years your investment has become worth much more. We are at the beginning of cryptocurrency adoption anyway. If you're interested in how to build up to financial freedom, you can have a read at some of my other posts. For now, lets continue.
Investing in businesses
Investing in businesses is one of the awesome things we will hopefully be able to do with cryptocurrencies in the future. For now, I am unaware if it would be possible to buy businesses with crypto. However, what this basically means is the possibility to invest in the stockmarket using cryptocurrencies.
Owning stock is actually owning a part of a business. Buying stocks with cryptocurrencies would mean that you would buy businesses with cryptocurrencies. Now, owning businesses of course means that you get paid if your business does well. This comes in the form of dividends. Own enough, and you'll never have to work again, because your businesses will generate money for you. Doesn't the stockmarket sound much more interesting put this way?
Investing in cryptocurrencies
A third way is of course just by investing into cryptocurrencies. Some cryptocurrencies offer and will probably continue offering some sort of interest. Own enough of that cryptocurrency and you'll have a continuous stream of cryptocurrency in the form of interest. This of course might mean that you will have own a lot of cryptocurrency, given that the interest might be something along the lines of 1% per year. But it is possible nevertheless.
This isn't the most likely way in my eyes but I might be wrong. Maybe there is some crypto out there that pays a lot of interest and will continue to do so. But again, I'm unaware of one.
Lets kick it up a notch
Ok, now I've listed some ways. But to make it more interesting, let's imagine a world in which everyone uses cryptocurrencies. Or at least it is easy to use them. Now you can ask your tenants to pay rent in cryptocurrencies or your businesses will pay your share of the winnings in cryptocurrency. This will enable you to switch from banks to decentralized finance. You won't even need to rely that your bank doesn't go bankrupt giving you another level of financial independence.
Doesn't that sound awesome? It does, and if this all seems like a far fetched idea just imagine how fast technology has shaped the way we live today. The same thing doesn't sound that far fetched anymore, now does it? We are only at the early days of cryptocurrency and getting into the game now means that you have a good possibility of benefiting from it hugely.