Ten advantages of cryptocurrency
Today the alternative financial realm of cryptocurrency features more than twenty varying digital currencies. Financial experts have been astounded by the advancement of this movement – and whilst businesses and the wider populous had been initially slow to get on board, today cryptocurrencies go from strength to strength – accounting for tens of millions of users as of the current year I will try to explain in this article Ten advantages of cryptocurrency and why you should consider some.
The growth of these alternative forms of money can be attributable to a wide range of benefits that cryptocurrencies offer over and above physical cash and here I take a look at ten of the most compelling advantages of cryptocurrency
- Cryptocurrencies open up a world of transactions to bank-free regions
Two billion adults in the world are unbanked – with the vast majority of this figure made up from those in third world. Cryptocurrency provides an alternative – opening up the potential to transact online, with no requirement for the opening of an account in a bank branch.
- Information is completely transparent
Cryptocurrency transactions are completely transparent – with the information viewable by anyone who wishes to inspect it (although personal information is kept private). This means that anyone, whenever they wish, can verify any payments and transactions made. On the same front, the protocol that cryptocurrencies work upon can never be intercepted, edited or manipulated – providing security through a process known as ‘cryptography’.
- There is potential for financial gains
Many look toward cryptocurrencies for investment – which is not so surprising given the incredible rises seen in the value of numerous cryptocurrencies. Certainly those who invested in the earliest days of cryptocurrencies have increased their stakes significantly. Whilst digital currencies are now demonstrating a far slower more stable growth there’s no doubt that increases in value are still being achieved.
- Cryptocurrencies give the consumer certainty – no surprise account seizures or fees
Where money is held by a bank, or an online payment provider such as PayPal, there’s always a possibility that your cash can be frozen at will. By comparison, cryptocurrencies are only ever held by the person who owns them.
What’s more financial bodies can also change their terms and conditions whenever they wish – with many banks today stating that accounts will soon no longer be free from charge. Unfortunately such providers are completely empowered in enacting this change – something that may well drive the growth of cryptocurrencies further.
- Businesses benefit from lowered risks
Merchants who accept cryptocurrencies know that the transactions they accept cannot be reversed (as is the case with traditional payments made by card or payment providers). This protects businesses from the prospect of fraud. This also means that companies can freely trade with customers who may be from regions with high crime and fraud rates.
- Cryptocurrencies ensure that international transactions are made far more quickly
International transactions are notoriously drawn out, demanding days at a time to process in order to eventually reach the recipient – with banks also charging for the privilege of this wait. Cryptocurrencies offer an instant alternative – with payments made and received within milliseconds, regardless as to where in the world each party may be based.
- Users benefit from strengthened security
Users of cryptocurrencies are protected by advanced features built into the currency – this ensures that hackers can’t intercept transactions to gain personal information. In addition to this, cryptocurrencies are also backed up and encrypted – protecting users from theft and fraud.
As a final benefit, consumers can be certain that the merchants they use aren’t adding on extra charges, as both parties are fully aware of the payment’s total before it is sent and received.
- Cryptocurrencies are free from rules and regulations
There has been much talk in Governments and ruling powers around the world about regulating or imposing rules on cryptocurrency trade. For the time being at least, this market is free from interference – with users benefiting from currencies that are free from the influence of exchange rates, political changes and interest rate hikes.
- Users are completely free to make the payments that they wish
Those who use cryptocurrency can forget about respective locations of sender and recipient – they can also ignore cross border rules, bank holiday and payment processing times, and every limitation in between that would typically tie down the user of traditional money. Ultimately cryptocurrencies provide complete freedom and control – and there’s no central ruling power (such as the Bank of England) that can dictate charges and terms at will – when and how they wish.
- Cryptocurrencies fair well when traditional systems face uncertainty
With the news of Donald Trump’s victory in the US election came market uncertainty. Currencies fluctuated, stocks wobbled and brokers around the world faced their most turbulent trading since the credit crunch hit. This behaviour perfectly demonstrates the problem with traditional markets and currencies – at the same time reflecting the strength of cryptocurrencies, which rose as all others fell.
What do you think about the ten compelling benefits that cryptocurrencies provide? Do you have any input about an advantage that should make my list? Leave your comments below.
In the upcoming weeks I’ll be covering the ways in which cryptocurrencies are presenting an exciting alternative line of investment when compared to the traditional stock markets. If you have questions about cryptocurrency – either the benefits, the ability to gain financially, or anything in-between, simply get in touch.