Cryptocurrency is a real game changer in today’s world. There’s no doubt about it. You might’ve probably noticed digital currencies keep making headlines around. Most of us are already familiar with the process of transferring money and making payments online. The concept of digital currency is quite similar to it but without the involvement of banks.
Cryptocurrency market has already been attracting a lot of individual investors and businesses due to its persistent rise in value. Many especially the younger generations have realised the importance of investment and are wanting to invest in Cryptocurrency rather than in traditional stock market investments.
Cryptocurrency can have its ups and downs, but we must bear in mind that if there’s no volatility we will not have chances of gaining any profits as well. It’s pretty much the same in any trading market. Businesses in the market around the world are embracing Cryptocurrency. The reason behind this is that adopting to new technology makes them stand apart from others.
Lately, the global interest in Cryptocurrency has grown. This digital currency is decentralised which means there’s no entity that owns your assets other than yourself. Let’s go ahead and see what else crypto has to offer to the present and future market.
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It is going to be the main currency in about a decade from now
Crypto can be resistant to economic crisis and offers more security compared to traditional banking systems. Since we already saw that it is a decentralise system, we can understand that we don’t have any need for banking systems or government to take care of our assets. Quoting Elon Musk’s tweet “Crypto has a far better way to transfer value than a piece of paper”.
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Lower transaction fees
Crypto comes up with lower transaction fees and eliminates bank charges. In traditional business dealings middlemen like bankers and agents typically charge varying fees when buying things or services online or when you conduct transactions electronically.
Let’s face it, this can be annoying. But crypto currency’s transactions are one to one dealings that occur on a peer to peer network structure. It means middlemen are taken out of the equation and you’re aware of whom you’re conducting transactions with and also transaction fees are greatly reduced or completely eliminated.
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Security and Confidentiality
More secure and confidential transactions can be performed through cryptocurrency in blockchain networking. Sometimes bank information such as transaction history, balance or even your account number and pins can be leaked to third parties. For example, when you use your credit card at a store to make a payment, you give them complete access to your credit line.
This can lead to fraudulent activities. Credit cards operate on a pull system which allows the recipient to “pull” funds from the customer’s account, while he provides sensitive financial information to them. This can be easily misused. Whereas cryptocurrency uses push system where the crypto holder “pushes” out the information that is only relevant to the specific transaction. No other information is sent out thereby making you less prone to fraud and identity theft.
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Inflation Resistant
Cryptocurrency can be called as digital gold. Crypto is resistant to inflation. What is inflation? It is the decline in the value of currency (money). Governments and central banks just create money (printing actual currency bills) especially whenever there is a financial crisis.
They do this to stimulate the economy and bring it back to normal; as a result it causes inflation. Increasing the money supply isn’t really a helpful solution since the amount of resources remains the same. This means the value of resources and services is more compared to money.
That’s why some people prefer investing in gold. New gold can’t just pop up out of nowhere like paper currency, it is limited. Things that are limited have more value. Similarly, cryptocurrency isn’t generated as some short term fix to problems. It holds its value and is inflation-proof.
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Provides Safety
Cryptocurrency offers high level security. Crypto currencies are traded through blockchain technology which is basically more secure than any other type of digital transactions. Crypto is encrypted; encryption of transactions and storage data is used to mainly provide safety and security.
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No one can control it
One of the biggest reasons people and businesses are investing in cryptocurrency is its nature of protecting itself and not being influenced by governments. Crypto doesn’t come under a particular country or have any regulations. Especially during the pandemic, many companies are willing to adopt digital technologies and are trying to incorporate the functionalities of cryptocurrency.
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Better International Transactions
Using cryptocurrency also lowers transaction fees for international payments. Traditional wire transfers and international purchases usually attract certain amount of charges. But since crypto transactions have no intermediary institutions or governments to pass through, the cost of transactions between users from different countries are kept very low.
This is specially beneficial to frequent international travellers. They don’t have to travel with large amounts of physical cash or need not worry about high fees for converting cryptocurrency into local currency.
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More Accessibility
Cryptocurrency is accessible to everyone. Anyone with an access to internet connection, a computer or a Smartphone can have or save digital funds. Using cryptocurrency is not as difficult as you might’ve thought. You can buy and sell funds easily and quickly because of the high liquidity. Unlike traditional banking systems crypto doesn’t need any paperwork or legalese.
It allows us to deal directly with the other user and makes transactions more specific and accountable for both parties.
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Instant transactions
Since Cryptocurrency is a decentralised system, there are no third party approvals for transactions to be rendered successful. This makes the transactions instantaneous.
Blockchain technology is already a decade old. The growth it’s going to see in the future is going to be dramatic. A lot of huge companies already accept payment in Crypto. Many who are looking for long term investments are relying on Crypto. There you have it. The potential of Cryptocurrency and the kind of impact it has on the financial market and your personal economy.
Do Systems Inc has experts for developing Cryptocurrency exchange platforms of your choice. If you are interested in starting a Cryptocurrency Exchange software business or have any questions,
contact us for a free consultation.
