TEN BENEFITS OF CRYPTO-CURRENCIES
Jun 14, 2017 Posted / 4531 Views
The 21st Century ushered in the digital era exposing the world to an expanding amount of anonymity, privacy and security. The looming shadow of the bits and bytes have crept so deep into our lives that processes such as payments which haven’t changed much since the Stone Age: until now. Enter crypto-currency. This method of payment opened up a whole new arsenal of secure ways to make payments across the fabric of the internet. Unless you’ve been living under a rock, you probably have heard of the word Bitcoin; they are one of the most commonly used crypto-currency. So as a noob as I once was, you must be asking yourself, why should I use something like this when my Credit and Debit cards work just fine. Let us break it down for you really quick.
Fraud is a thing of the past: Individuals crypto-currencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs. In layman’s terms, it is the equivalent of having your picture on a currency note and the bank printed it specifically for your use. Neat huh.
No more of waiting for approval: Bulk transfer of funds typically involves some third parties like a lawyers, notaries etc., delays, and payment of fees (a.k.a. taxes). In many ways, the bitcoin / crypto-currency is versatile and customizable in the form of a large financial rights database. Bitcoin contracts can be fabricated and implemented to eliminate or add third party approvals, references or external facts, or be completed at a future date or time for a fraction of the expense and time required to complete traditional asset transfers.
Everyone is welcome to play: There are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to traditional exchange i.e. Credit or Debit Cards, these people are primed for the crypto-currency market. The spread of crypto-currency allows these people from every corner of the world access to fast, secure and hassle-free payments. The long-term effects of such a payment scheme are tremendous and will allow development and progress in all areas of the world.
Decentralization for the win: A global network of computer systems uses blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Still don’t get it? Most of the big banks like Barclays or Standard Chartered make use of a board or committee of individuals to manage the working of a bank. And as all Hollywood movies tell us, they probably have some hidden agenda of their own. Crypto-currency nullifies the possibility of that because the control of the system does not lie with a bunch of people but rather it is spread across every single user of the service. This forms a mass collaboration whose possibilities are just beginning to be investigated.
It is a Universal constant: You ever face that problem where you want to exchange currency at some exchange agency after or for an international trip? Well, even if you haven’t, they charge a good percentage of that money in the form of exchange tax. With crypto-currency, kiss that tax goodbye! Since crypto-currency is not bound by the exchange rates, interest rates, transactions taxes or other charges of any country; therefore, it can be used hassle free at an international level without experiencing any sort of problem. This, in turn, saves lots of time as well as money on the part of any business which is frequently transferring money from one country to another. Crypto-currency operates at the universal level and hence makes transactions quite easy.
Identity Theft: When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a what is called a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Along with that, they have your name, address and whole other array of information that you did not expressly allow them access to. Now imagine what that information could be capable of in the wrong hands. However, crypto-currency uses a what is known in the industry as “push” mechanism that allows the crypto-currency holder to send exactly what he or she wants to the merchant or recipient with no further information i.e. only your money is transferred and other information like name etc. are omitted from file.
Lower Fees: There aren’t usually transaction fees or taxes for crypto-currency. Even though there’s no bitcoin / crypto-currency transaction fee, most users will engage a third-party service, such as Coin-base, creating and maintaining their online bitcoin wallets. These services act like PayPal or PayTM does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge a certain transaction fees. It’s a real shame that PayPal doesn’t accept Bitcoin.
You Are in the Driver’s Seat: One of the best things about crypto-currency is that, unlike virtually any other type of money retaining system (except your wallet; nothing beats that) you totally own it. Think about it: most traditional liquid asset systems – banks, credit unions, brokerage houses, or even high tech ones like PayPal – take control of your funds and leave you subject to their terms of service. If they decide that you have violated those terms, they can suspend your account and freeze all your assets without having to tell you about it. They can change their terms of service, and cause you to have to pay more or receive fewer funds for important transactions. Most of these firms work on agendas and agendas always change. With crypto-currency, you retain all of the funds on hand, so to speak, digitally, with no third party involvement; the only one who can change the terms of your crypto-currency use is YOU.
Unbeatable Security: Transactions processed on the public Bitcoin and Ethereum (another type of crypto-currency) blockchain are irreversible, untraceable, impenetrable, impregnable, and impervious (and all the other words showing how secure it is) from outside manipulation. Bottom line, your hard earned money is safe. At ease soldier.
Inflation is now deflated: Protection from a high rate of inflation. Inflation happens when there is a rising supply and a falling demand. The most commonly observed method is the production of counterfeit notes. The over-circulation of bank-notes can drop its value and hence can significantly reduce the purchasing power of any government-issued legal tender (such as the EUR, CAD, USD). Crypto-currency is immune from such threats because they cannot be counterfeited and hence is always protected.
Hence, in this article we have covered all the major pros of why you should be going all-in for Crypto-currency. There is no doubt that they are the way of the future and we all may live to witness the shift in power from currency to crypto-currency and usher in a new era of fast, secure and accessible mode of payments.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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