Falling in love with Crypto-Currency
The global economy is apparently shifting toward a digital eco-system. Whether it is online shopping, investment, or money transfer, literally everything can be done paperless. Now, a completely new element has been added to this latest digital trend, and that is cryptocurrency.
For starters, of course, a cryptocurrency is a medium of exchange just like fiat currencies Euro or Dollar but obviously made exclusively for digital purposes. By the definition of Investopedia.com, “Cryptocurrency is a decentralized digital currency which utilizes cryptography for safety” and thus making it extremely complex to counterfeit. No kind of financial institution or any nation’s government can control these cryptocurrencies.
Since it is still new on the market, people are in the process of adapting cryptocurrencies and due to which the cryptocurrency market is experiencing fluctuations. Some of the newly smitten investors are a bit afraid of losing both their money and interest in this newly emerged technology.
However, it is always a good step to rethink again the fundamentals. For sure we cannot say which market heading in which direction, but one thing is for sure, the future holds great things for cryptocurrencies. And here’s why:
1. Lowers the risk of fraud
Around 16 million customers were victims of identity theft in the year of 2017. This sort of online fraud is increasingly growing day by day which continues to pose an immense risk to both customers and businesses. With all the information easily available, it wouldn’t take much time for eavesdroppers to set up fraudulent accounts and sell fake products by making it look like they are an established brand/company. Such Ponzi schemes also make customers doubt in online transactions.
But cryptocurrency offers an opportunity to trace the ingenuity of the products. For example, selling tickets to a program utilizing blockchain will let you trace every little information of every seller from the stored blocks of data and the element that sets this apart is that these data blocks can’t be falsified or duplicated.
2. Peer-to-peer exchanges
One of all, the biggest advantage of cryptocurrency is that for any payment there will be no middlemen involved, any sort of. Out of all, Bitcoin’s peer-to-peer technology is created to assist people instantly, safe, and cheap settlement of values without having to involve any middleman such as a financial institution or a bank.
3. Lower transaction fee
For both retailers and customers, cryptocurrency offers lower transaction fee. For instance, one of the major Bitcoin payment providers, BitPay, offers a neat 1 percent as a settlement fee for Bitcoin payments. On the other hand, credit card companies charge you up to 3 to 4 percent in the form of processing fee.
4. Works great with commodity currencies
Commodity currency is the one whose production can be determined, for instance, printing of US dollar or mining gold. But cryptocurrencies do not come under this section as they revolve in an unregulated free market backed by the value structures. The price of one unit is based on various parameters which make the cryptocurrency stable or unstable and that is why it cannot be used as a fiat currency. Nonetheless, in the digital selling world, cryptocurrencies are made to work specifically in those domains, faster and efficiently.
Of course, no matter what, every coin has two sides. In order to make a thorough decision, you have to see pros and cons in detail so that you can make an informed choice. With cryptocurrency, it will be more about people acceptance than technology. The technology is here to stay. It is just a matter of time before cryptocurrencies are made legal in every single country across the globe.