The term “Cryptocurrency” has been making rounds since the last couple of years, and people have been trying to understand its usability and how to evaluate it to use it as a regular currency. It did sound scary to people at first just like credit cards were a big “no-no” when it first entered the market. However, gradually with time, it is seen that the market for cryptocurrency has established itself and is well-placed to grow.
Cryptocurrency is a primarily a digital currency and is managed, created and safeguarded through highly advanced coding and encryption techniques. As the encryption technique used in its creation is known as Cryptography, the digital currency is named Cryptocurrency. The first currency of its kind started in 2009 called Bitcoin, and since then, many other cryptocurrencies are in use.
While there are debates as to whether the cryptocurrencies have a future or not and whether its value provides confidence to its users, it needs mention that it’s close to a decade when it started, and it is still around. So, yes, it would be around for longer because the benefits of using such a currency are well-identified by certain sections of people across the globe, and more people are joining the cryptocurrency group every passing day. With many new cryptocurrencies entering the market, it only points to the fact that the market for such a currency is growing and is here to stay. DasCoin takes a look at some of the benefits of using cryptocurrencies.
The dollar bills in use or any other paper currencies have millions of counterfeits in circulation. Well, that is not possible with cryptocurrencies as neither can it be reversed arbitrarily or counterfeited. In essence, it is fraud proof.
The cases of identity theft are rampant with credit cards, and debit cards use. It is because the digits on the credit card are stolen easily whenever in use at stores, malls, online, or elsewhere. These cards use the ‘pull’ mechanism where the merchant debits the money from your account or credit. Cryptocurrencies use the ‘push’ mechanism where the holder of the currency has the authority and the power to send as much as they want from their inventory. Identity theft is not possible with cryptocurrency as the account is in control of the users.
Cryptocurrency can facilitate quick and immediate settlement, unlike the conventional medium for asset transfer, where there are delays to the involvement of third parties. The contract of cryptocurrency can eliminate the participation of third parties, if needed, or can facilitate the transfer of assets on a scheduled date in future, at minimal expense.
Cryptocurrency is available for one and all across the world whoever has access to the internet. The traditional exchange systems may or may not be available to all users due to the formal structure of setting up an account, and other formalities. However, Cryptocurrency is accessible for every internet user, and developing countries are using it conventionally as well. For example, one in three Kenyans has a Bitcoin wallet. Surprised?
There are absolutely no transaction fees applied on transactions based on Cryptocurrencies as of now. However, the wallet where you store the cryptocurrency may charge the exchange fees when you put it to transfer.
These are the few advantages of using cryptocurrencies. It is a market that has a tremendous scope for growth, and with many new cryptocurrencies entering the market, the people who join the revolution now are sure to be the biggest gainers in the future.