Cryptocurrency is a digital money designed to work as a medium of exchange that uses progressive encryption procedures called cryptography. Cryptography safeguards all transactions controls the formation of additional units and verifies the relocation of properties. Cryptocurrency is a type of the following currencies;
- Digital currencies
- Virtual currencies
- Alternative currencies
Cryptocurrency uses decentralized control with a mechanism known as blockchain, which is an unrestricted transaction database. The first Cryptocurrency was Bitcoin that was invented in 2009, from then there have been a number of cryptocurrencies that have come into existence.
In recent years Cryptocurrency has swiftly gained recognition and understanding of its usage and value by many people. Apart from Bitcoin, there are other types of Cryptocurrency such as;
In April 2013 Bitcoin received a great deal of attention in many parts of the world when its worth was $266 per Bitcoin. But after two months the value of Bitcoin decreased by 50%. Currently, Bitcoin has a market worth of $10 billion.
The following are the benefits of using Cryptocurrency:
Many global businesses currency have embraced the use of Cryptocurrency this is due to fluctuating exchange rates during transactions. Have you ever experienced difficulty in currency exchange or charged for currency exchange? For Cryptocurrency, there are no such things and are priced at a constant value.
Non-issue and recognized value of cryptocurrencies have led to time-saving in determining a value for a transaction, and charges associated with the exchange of different currencies. As Cryptocurrency is being embraced in different parts of the world, it is going to make financial dealings quicker and easier.
The other forms of the electronic money system, Cryptocurrency is the safest of all. This is because with Cryptocurrency you own a private key and a corresponding public key that creates your Cryptocurrency address, which only belongs to you. But for the other electronic systems, your account can be owned by another person without your consent.
For Cryptocurrency to replace traditional currencies and credit cards it will take time because many people are unaware of cryptocurrencies hence education on Cryptocurrency is essential if it is going to be used in future.
Accessible to Everyone
Globally there are almost two billion people who have access to internet and phones. These group of people is slowly embracing the use of Cryptocurrency rather than the use of traditional forms of money. M-Pesa a Kenyan mobile money transfer system and micro-financing service have currently announced a Bitcoin device, in which has already gained popularity few months after later.
As the world is rapidly developing and the use of mobile phones connected to the internet are also increasing, many people and businesses will embrace the use of Cryptocurrency. It is considered that the use of Cryptocurrency will spread quickly in the manner phones spread at the end of the 1990s and beginning of 2000s.
Use of Cryptocurrency in the acquisition of property helps in the removal of costly lawyers, brokers and other middlemen who inflate the price of a property. Cryptocurrency essentially acts like, “a vast property rights database”, this is in regards to a financial professional and can be used to implement and apply a contract between two parties on various properties such as automobiles.
You have Control of Cryptocurrency
The most exciting thing about Cryptocurrency, unlike other money systems, is that you have the control of your money. Most traditional money systems such as;
- Brokerage houses
- Credit Unions
Usually, take control of your money and you have to adhere to their terms and services. If you do not abide by these terms they can append your account. Sometimes they can increase the monthly fees without consulting the account owners which becomes more expensive.
But for Cryptocurrency there is no one who can manage your funds, you are the only one who can decide when to change your terms.
Unlike cash or credit cards, Cryptocurrency is digital and encoded to avoid theft of your funds. If you are using legacy payment methods or a wallet full of money, theft becomes easier contrasting Cryptocurrencies.
Globally online, saving, and credit transactions are rapidly increasing on a daily basis. Hence the only safe method of transactions all this is by the use cryptocurrencies.
Unlike banks and financial institutions which are controlled by the government and tracing and seizing of customers’ accounts is easy. For cryptocurrencies, no government can trace it hence no chances of confiscation.
Cryptocurrency is untraceable due to the fact that there are a number of networked computers that use Blockchain hence no central control.
Cryptocurrency has promoted usability and growth of global markets due to increase in the value of cryptocurrencies. As many users and merchants join the network the more the demand and the higher the prices of cryptocurrencies.
There are also other benefits of Cryptocurrency that are considered to be minor. They include:
- Low inflation risk
- Computer-generated Wallets – Cryptocurrency can be safely stored in a virtual wallet hence minimal the chances of theft.
- Leverage – businessmen who trade Cryptocurrency with the help of brokers are presented with leverage, giving them a great pact of flexibility.
- No transaction cost – no transaction cost is applicable when it comes to Cryptocurrency because all Cryptocurrency transactions are documented on a public account book and not on paper.
- Fraud – Cryptocurrency is digital and hard for counterfeiting to take place.
- Easy to use – Cryptocurrency is easy to use, by adding an extension to your business application or use of an application.
- Faster processing – settlements are done within one minute opposed to banks that take five to seven business days.
- Borderless dealings
- Cashback platform for customers
There are many other benefits of using cryptocurrencies and currently, it is taking over the global market. With all these benefits I strongly recommend you to embrace the use of Cryptocurrency so as to be part of it.
Also, you should be aware of the risks involved when transacting using Cryptocurrency. You should trade Cryptocurrency with intelligent assets which are basically a better way of getting involved in the digital market using money in your ideal currency, without trading with the concerned Cryptocurrency.