5 amazing advantages of cryptocurrency: A new digital future
It’s a fantastic, fast and convenient alternative to traditional currencies.
Cryptocurrency is a term that describes a digital type of money. Digital currencies use advanced cryptographic methods to provide the highest level of security. People often associate it with Bitcoin, which is the most popular Internet currency at the moment. But, the variety of cryptocurrencies is much wider – Ethereum, Litecoin, Tether or Dash are just a few examples of the most known ones.
At the moment, there are almost 3000 different types of cryptocurrency, and their total value is nearly 240 billion dollars. Why were they hailed as “a new digital future”? In this article, you’ll find out the benefits of cryptocurrencies, and hopefully, you’ll feel like it’s a good time for buying ripple!
The benefits of cryptocurrency
Digital money became famous because of the benefits that it can provide. Many believe that the most significant advantage of cryptocurrencies is that they are decentralized. What does it mean? It means that there’s no central government or any party who could take it away from you.
There was a case in Cyprus in 2013 when the Central Bank of Cyprus had to recapitalize itself. In order to do so, it wanted to take back uninsured deposits that were bigger than $100.000. This situation was real because the traditional currency is centralized. It can’t happen to digital currencies, though.
Decentralization, in other words, means that the money is 100% yours, and nobody can control it, not even the creators. Of course, not everybody believes it’s an advantage, but those who don’t trust in the traditional banking system claim that it’s one of the reasons for digital money popularity. What are the other undeniable advantages of Internet money?
It’s not possible to fraud it
Cryptocurrencies are digital. Therefore it’s not possible to counterfeit them. Real money has a lot of anti-fraud protection. However, reality shows that people always find a way to overcome the protection levels and falsify the cash.
When it comes to cryptocurrencies, it’s pretty much not possible. In the past, people used to perform a double-spend attack, which is kind of like spending the same bitcoin twice for different transactions, but it became impossible after implementing blockchain protection, which directs all transactions into a pool, where they have to be confirmed first.
Identity theft is not an issue
One of the biggest disadvantages of credit cards is that they use pull system transactions, which is more risky, as it makes it possible to get information, for example, about your credit line. Cryptocurrencies, on the other hand, use “push mechanism,” and it’s a way to send the exact amount of money to the recipient, without additional information about you.
Transferring money via traditional methods can be expensive. Banks charge transaction fees because they need them to exist. Whenever you use cryptocurrencies, there’s no need to pay any fees to banks or similar organizations, because they are not required in the process. Of course, if there were no charges at all, then it would be suspicious, right?
At the moment, most cryptocurrencies aren’t free from fees – with every transaction, a small fee is charged, but only the buyer has to pay it. Very low operating costs make it worth it to pay with cryptos, and when you’re selling something, then the transaction is pretty much free for you.
A fantastic advantage of cryptos is the fact that they are available all over the world. No matter where you live, you’ll surely be able to pay using digital money, and you can be sure that it’ll be accepted anywhere in the world. It’s a much more convenient method of payment because you won’t have to worry about exchanging currencies anymore. There are more and more companies that offer cryptocurrencies as a method of payment, for example, Microsoft, Wikipedia or Burger King.
Besides, you are not limited to anything. You’re able to pay anyone, and there are no limitations. There is nobody who controls the transactions; that’s why you’ll be 100% anonymous. You can have as many wallets as you want, and you don’t have to give away your personal data to create them.
As you probably know, one of the things that are inevitable when it comes to traditional money is inflation. It’s a situation when the general price of products and services systematically increases over time. It can be dangerous, and there’s a lot of examples. Just take a look at Venezuela’s economic situation, and you’ll understand how serious a problem it can be.
Luckily it’s not a problem when it comes to cryptocurrencies. There’s a limited amount of them, and there’s no way to produce more. That’s why nobody is able to cause inflation in the system.
Many people don’t know much about cryptocurrencies. They believe that since nobody can control it, then it’s dangerous. But, in reality, it’s a fantastic, fast and convenient alternative to traditional currencies.
- PSA: If you own crypto and use this Google Chrome extension, delete it immediately
- How to protect your cryptocurrency from the reach of hackers in 2020
- How do crypto trading robots help traders maximize their returns
- How cryptocurrencies could revolutionize our society