Cryptocurrency has revolutionized the banking system in today’s world. The form of transactions that take place on this is based on the internet and are confidential in nature. These transactions can be performed at any time and are universally accepted.
Cryptocurrency uses blockchain technology to secure its transactions and keep everything anonymous. Cryptocurrencies are either mined for or are accumulated by solving complex algorithms. They can be used for various reasons and can be even exchanged for physical money. Due to such fewer regulations and simply transactions, there are many advantages of cryptocurrencies such as,
1) No Form of Fraud –
As Cryptocurrency transactions take place over the internet, there is no possibility that any other person can counterfeit it. Neither like cash that can be easily stolen nor like credit cards that can be taken and can be used lavishly, cryptocurrency does not exist in the physical format.
2) Lower Transaction Fees –
Currently, there are no transaction fees that are charged by suing cryptocurrencies as the miners for cryptocurrencies are charged by their network providers. It is widely considered that in the coming future people are going to use third-party contractors such as Coinbase, to carry out the cryptocurrency transactions and then the transactions charges will be charged by these private firms. Unlike banks that charge a hefty amount of transactions fees, currently, cryptocurrencies are free of transaction charges and are easy to use.
3) Immediate Settlement –
Unlike buying a property that involves many types of people in the transaction which usually tends to delay the process, cryptocurrency transactions take place directly over the internet cutting out the fees of the middleman. The transactions that take place using cryptocurrencies take place instantly, and once transactions are completed they cannot be reversed or stopped no matter for any reason. Thus one must be very careful while dealing in cryptocurrencies.
4) Access to Everyone –
Every single person who has access to the internet can mine for cryptocurrencies. There are not may requirements to own any form of cryptocurrencies. As the mining and transactions take place on the internet, it makes it accessible for everyone.
5) Identity Theft –
Cryptocurrencies use a “Push” form of mechanism for transactions that allows a person to send the exact amount to the receiver without disclosing any kind of information to them. It is entirely anonymous, and even the identity of the sender cannot be known until they disclose it to a person before making any transactions.
6) Universally accepted –
Cryptocurrencies do not operate based on international banking regulations. Thus the change in the value of the paper bound currency from nation to nation does not affect cryptocurrency in any form as it exists only virtually. As it operates on a universal basis thus, it makes transactions very easy.