It is easy to get perplexed with the unknown facets of the ever-evolving digital world of money transactions. Nevertheless, it does not hurt to get with the times and understand the changing dynamics.
Having said that, I must say that cryptocurrency has been creating massive waves around us. Still wondering what is cryptocurrency and why is it taking over the world? Well, I hope to break this fear and anxiety of the unknown into something that is easier to relate to.
For starters, we all know that we are now in a digital era where everything happens at the click of a button. Here is where the concept of cryptocurrency comes into play – it is electronic money that is designed to retain the anonymity of the user in a safe and secure manner over the net. So what it does is change any information of your purchase or transfers into a cryptic code which is extremely hard to crack – it uses cryptography.
The good that comes with it:
- In doing this and keeping information so wrapped up it assures to avoid an instance of being counterfeited.
- The financial transactions are visibly faster.
- Cryptocurrency will also bring a sense of relief for people with no bank accounts.
There are various types of cryptocurrencies that are available today, and each of them varies in value. Bitcoin is a type of cryptocurrency that is setting standards for most others in the market. It is the strategy that was brought by people who ran under the moniker, Satoshi Nakamoto. In the paper called Bitcoin: A peer-to-peer electronic cash system, they go on to how the users are the exchange system in the peer-to-peer system. This alleviates any third-party involvement in the transaction. It is also the first decentralized system.
Perks that come with decentralization:
- The ability to fix the flaws of banks and other financial facilities.
- It is going to make it extremely convenient and protect each user’s anonymity in the best way possible.
- The blockchain technology being used completely eradicates the possibility of money laundry because it makes very clear-cut transactions that are completely transparent.
- It also curbs the competitive nature of banks and makes it beneficial to all.
- It also allows the government to exert control.
The one thing that is absolutely certain is the fact that we all eventually have to ride the tide and the way forward is with cryptocurrency. Hence, it is in your best interest to understand why this model that is here to stay will empower you in the most effective way.
To break it down further, I will point to the elements that cryptocurrency will empower the world and thus bring about a serious change:
The archaic traditions of wire transferring an amount and waiting for days to know if the intended person has received the amount are over!
With cryptocurrency this happens literally in seconds – what that means is that you can now transfer any amount to anyone with an electronic wallet. This alleviates the trips to western union or the bank and in fact, happens at the click of a button. This shift in turnaround time will for transactions all around the world build a stronger economy and save a lot of time.
- Level of control and privacy for the public
Crypto has given the reins of controlling finances to the public. It eradicates the stringent rules and policies of the various governments and banks.The cryptocurrency uses the blockchain technology to change the culture of third-party interference and give each of its users the power to control and monitor their own finances.
Think of it as a kind of electronic log that thrives on a self-governing network of computers on the World Wide Web. This simply means that you will not have any governing force track your every move – something tells me that is a game changer!
- Safety net for Developing countries
We are all aware of the fact that developing countries are now on a rampage to get up to speed with the tech – an interesting analogy would be the use of the Smartphone in the most rural areas in countries like Africa. With this boom in a trend of amplifying technology to fit the trend – cryptocurrency is the only next phase to guide this change seamlessly.
I mean people are resorting to mobile wallets for payments and mobile credits as a means of trade for commerce. This form of the transaction becomes an imperative factor for a change in trend even in developing countries and the world.
- Moving in the direction of Cryptocurrency
You may notice that even as we speak many of us receive our monthly wages via an electronic transaction and an acknowledgment that you have received it thereafter. The process of a virtual transfer happens without you having to touch any money. This level of interaction can only be enhanced with the natural progression to a safer platform by using cryptocurrency.
Of course, there are a few drawbacks with this as it is still in its nascent period. You will find the fees for each transaction rather high – sometimes as much as 20% higher than the normal route. There are instances where you will find cryptocurrencies like Bitcoin showing up with flaws – quite naturally! And our mindsets are pre-programmed to go with what is already tried and tested, but the inevitable fact is that Cryptocurrency is here to stay!
In conclusion, I see that cryptocurrency making a future that is built to your standards. The advantages that are yet to come will be far more interesting to learn off. There will be many questions and you will find the answers, but the need of the hour is to accept these changes – for it has the potential to create a world with lesser poverty, and this will change the world drastically. Cryptocurrency is the way to the future!