Making the headlines as an effective alternative to mainstream ways of exchange like credit cards, debit cards, or cash, the cryptocurrency have produced several different perspectives.
A large chunk of world population thinks of cryptocurrencies as an extremely beneficial financial platform for criminals, drug lords, terrorists, and fraudsters, due to their involvement in several scams, and in buying/selling on the Dark Web.
Whereas, on the other side, there’s this huge chunk of people that consider cryptocurrency to be an extremely lucrative investment opportunity that can have a significant influence on trading methods of traditional investors. The immense hike in the price of bitcoin a few years ago and the positive hype associated with cryptocurrency has supported this school of thought.
Throughout this blog, we’ll take you through all the positive factors and benefits of cryptocurrency. So, without further ado, let’s get started.
Benefits of Cryptocurrency
1. Sole Ownership
In a credit card or traditional banking system, you completely hand-over control of your funds to a relevant third-party that possesses the ability to use the power of death or life over your assets. Accounts might get closed without prior notice for breaching of Terms of Services of a financial institution.
Probably the biggest benefit of cryptocurrency is that until and unless you’ve handed over control of your wallet services to a competent third-party service, you are the only owner of the initially provided public and private encryption/decryption keys that blend in to make your cryptocurrency network address and identity.
2. Smoother International Trade
Even though massively unidentified as legal tender on the national level as of now, crypto by its nature is not dependent on the levies imposed by certain countries such as transaction charges, interest rates, or exchange rates.
With the help of blockchain technology’s peer-to-peer mechanism, international transactions and transfers might get executed without any sort of confusion over currency exchange fluctuations.
3. Better Access to Credit
The internet and digital data transfer are the two main components that are helping the exchange in crypto. To simply ensure that these services are not restricted in any way and can be easily accessed by anyone, who has a reasonable data connection, prior knowledge of the cryptocurrency networks that are being provided, and ready access to their portals and websites.
It is expected that as of now there are 2.2 billion people around the globe that have access to smartphones or the Internet, but unfortunately do not have access to mainstream systems of exchange or banking. This eco-cryptocurrency system possesses the ability to make transaction processing and asset transfer available to this massive market of enthusiastic customers – once the needed infrastructure (regulatory and digital) comes into effect.
In mainstream business dealings, legal representatives, agents, and brokers tend to massively complicate a transaction which should pretty straightforward. Moreover, it also adds a lot of expense which could be easily avoided. Let’s have a look at some of the unnecessary types of fees’ that it would require you to pay. There’s agent’s commission, agent fees, brokerage fees, paperwork fees, and several other conditions that apply, depending on your case.
One of the most significant benefits of performing transactions through cryptocurrency is the fact that they’re one-to-one affairs, happening on a peer-to-peer networking structure that eliminates the middle man factor. This results in more clarity in developing audit trails, less complication over who should pay what to whom, and better accountability.
5. Transaction Fees
There’s a very minute chance that you haven’t flinched at the number of fees that’s been deducted for transferring funds, writing checks, or merely breathing in the way of the involved financial institutions, all mentioned in your monthly credit card and bank statements. Such fees can be a real headache and possess the ability to eat-up a huge chunk of your assets, more so if you’ve been consistently transferring funds over the course of the month.
With the help of the data miners (separate and remote computer systems) that do the number crunching, cryptocurrencies such as Bitcoin are assured that they will receive their due compensation from the crypto-network involved. This is the reason why transaction fees don’t apply.
However, there is a possibility of the existence of some outside fees, in case you ask for the services of third-party management service to control your cryptocurrency wallet. But even after that, the transaction fees that you’ll be charged with will still be extremely less than the transaction charges of the mainstream financial systems.
6. Transferring of Assets
Being a financial analyst, I term the crypto blockchain as looking like a “huge property with the perfect database,”. It could be used to carry out and put 2-party contracts on goods like real estate or automobiles. However, the eco-cryptocurrency blockchain system might also be used to support special modes of transfer.
For instance, cryptocurrency contracts could be developed in a way to add third party approvals, refer to extra factors, or be completed at a certain time or date in the future. And due to the fact that you are the cryptocurrency wallet holder, you will have special governance of your account. This diminishes the expense and time involved in transferring assets.
You can read about the technology behind Bitcoin, right here