8 Important Benefits Of Cryptocurrency

8 Important Benefits Of Cryptocurrency 1

Although not everyone today knows about cryptocurrency and blockchain technology, but it’s necessary to know how these two entities will change the world around us for the better. It is important to know some of the benefits of cryptocurrency.

Benefits Of Cryptocurrency

Security and fraud protection

Personal cryptocurrencies are digital and can not be counterfeited or arbitrarily canceled by the sender, as is the case with unpaid credit cards.

Immediate settlement

The purchase of real estate usually involves third parties (lawyers, notaries), delays and payment of fees. In many ways, the blockchain is like a “large database of property rights,” Contracts can be designed and enforced to eliminate or add third-party approvals, external reference facts, or be completed on a date or a future time for a fraction of the expenses and time required to make traditional asset transfers.

Lower fees

There is usually no transaction fee for cryptocurrency because miners are compensated by the network. Even without transaction fees, many expect most users to engage a third party service to create and maintain their digital currency portfolios. These services act as Paypal for credit or cash card users, providing the online exchange system, and as such, they are likely to charge fees. It is interesting to note that Paypal does not accept or transfer bitcoins.

Protection against identity theft

When you give your credit card to a merchant, you give him access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a “pull” basis, where the store initiates payment and draws the designated amount from your account. Cryptocurrency uses a “push” mechanism that allows the cryptocurrency holder to send exactly what he wants to the merchant or recipient without further information. This is one of the most important benefits of cryptocurrency.

Access for everyone

There are about 2.5 billion people with access to the Internet or mobile phones and smartphones that do not currently have access to traditional exchanges, these people are ready for the cryptocurrency market.

Decentralization

A global computer network uses blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network and not by a central authority.

Decentralization means that the network operates from user to user (or peer-to-peer). The forms of mass collaboration that this makes possible are just beginning to be studied.

24/7 payment tracking

Traditional banking systems require that shippers or recipients follow payments through banking systems for periods of three days or more. This creates uncertainty for the sender and recipient of the funds. With cryptocurrencies, transactions can be tracked at the second and the exact time of payment delivery can be collected with greater certainty. This creates security for the sender and receiver

Confidentiality

While banks require complete knowledge of all your personal information and that of the payee of the payment, cryptocurrency does not require more information than you wish to provide. Your payment is between you and your beneficiary. For people who need confidentiality and anonymity, this is one of the biggest benefits of cryptocurrency.

Recognition at the universal level

Since cryptocurrency is not bound by exchange rates, interest rates, transaction fees or other fees of any country; therefore, it can be used internationally without encountering problems. This, in turn, saves a lot of time and money from any company that spends to transfer money from one country to another. Cryptocurrency works at the universal level and therefore makes transactions quite easy.

Benefits of cryptocurrencyThere is no other electronic payment system in which your account does not belong to someone else. Take PayPal, for example: If the company decides for any reason that your account has been misused, it has the power to freeze all assets held in the account, without consulting you.

It is then up to you to juggle all the necessary steps to obtain the authorization, so that you can access your funds. With cryptocurrency, you have the private key and the corresponding public key that is your cryptocurrency address.

No one can take it away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

Overall, cryptocurrencies still have a long way to go before they can replace credit cards and traditional currencies as a global trading tool.

The fact is that some people still do not know about cryptocurrency. People need to be educated about this in order to apply it to their lives. Businesses have to start accepting it. The future appeal of crypto-currencies lies in allowing you ultimate control over your money, with secure and fast global transactions, and lower transaction costs compared to all existing currencies.

It is clear that cryptocurrency brings a number of new and exciting advantages over the current fiduciary system. While this technology is still in its infancy, it is extremely exciting to think of a revolutionary system in which cryptocurrency is the main form of currency.

A new, simpler system for all could spread wealth around the world. This new system would not only facilitate international trade, but would protect ordinary citizens and their hard-earned money.

Having seen the importance and benefits of cryptocurrency, we are now calling on more people to embrace it, because it (cryptocurrency) isn’t going anywhere for a long time to come.

But in the meantime, we would like to hear your thoughts on these benefits. Do you think cryptocurrencies will replace the traditional currencies in the future? What’s the most important benefit of this cryptocurrency to you? Tell us your thoughts using the comment box below.

Oh, and if you found this article interesting, then it is important that you discover the top 10 Cryptocurrencies to invest in this year. 

About the Author: Richard Nwanekezie

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