Cryptocurrency is one of the leading currencies and becoming more and more popular every day among people. But there are many contradictory points of view of people. Some say cryptocurrency is a financial medium for scammers, terrorists, etc while others say the cryptocurrency is going to be the future currency as the price of bitcoin is increasing very fastly. They find many positives of cryptocurrency. They rely on blockchain technology to keep their money safe from fraud and scammers. They believe that blockchain technology has positive impacts on wallets and trading.
Here, we will discuss what are the advantages of Cryptocurrency as a financial medium.
Advantages of Cryptocurrency
Let us have a look at some of the advantages of cryptocurrency:
Cryptocurrency transactions are one to one affair and work on the peer-to-peer structure while cutting out the middle person. This provides transparency in audit trails, lowers confusion, and provides greater accountability. Here, both the parties involved in the transaction know each other.
2. Asset Transfer
Financial experts describe the crypto blockchain as a large property rights database that can be used to execute and contracts of parties on different commodities. For instance, Crypto contracts can be designed for third-party approval or can be completed at a specific date and time in the future.
3. Confidential transactions
Under the cash/credit system, all your transaction is visible to a credit agency or bank and they can have easy checks on your account balances. But in Crytpo transactions, each transaction is unique and among two parties only. The transactions do not involve any third party which ensures confidentiality. The guard keeps you safe from threats and theft.
4. Transaction fees
When you carry out any transaction, the bank or the financial organization involved charges you’re the processing fees which are deducted from your asset especially when you perform multiple transactions in a month.
In cryptocurrency transactions, the miners get their fees from the cryptocurrency network hence they don’t usually charge any fees from any of the parties involved in the transaction.
If you use any third-party assistance to manage your wallet, they can charge you some fees but they charge a minimal amount.
5. More access to credit
As it is a digital currency and involves digital data transfer and the internet as the facilitating media. These services are accessible to anyone who have a basic digital sense, an active internet, and cryptocurrency knowledge.
There are nearly 2.1 billion people in the work who have smartphones and the internet but they do not have the traditional methods of transaction. The Cryptocurrency ecosystem makes it possible for everyone to process the transactions.
6. Easy for international trade
International trade with traditional transaction methods is never easy. The money transfer time and payment processes kill lots of time and it charges huge amounts also which are deducted from the actual amount. But, when trading through cryptocurrency, there is no time wastage and the processing fees are nil or negligible.
7. Individual ownership
The traditional banking system or the credit card snatches the ownership of your own money from you. As the cryptocurrency does not involve any third party, you are the owner of your asset ns use it as you like.
8. Strong security
Blockchain technology provides you safety and your data remains under security. You don’t have to worry about any fraud or scammer invading your personal information.
There may be many negative aspects of people about cryptocurrency but as we can see there are many advantages too. This shows maybe cryptocurrency will have a good future and can become the main financial medium.