Cryptocurrency, in very simple terms, is a virtual currency that employs cryptography to ensure security making it virtually impossible to counterfeit. Many cryptocurrencies use block-chain technology on decentralized computer network systems. Perhaps the most marked difference between cryptocurrency and other conventional currencies is that it is not issued by any central authority, which insulates it from manipulation of interference by the government. While cryptocurrencies hit the headlines every now and then sparking off animated debates on its use, control, and valuation, most people do not know its benefits. However, as the use of cryptocurrencies increases by the day, often sparking off fresh controversies, it is very important that its benefits are understood by all. Some of the most significant advantages of using cryptocurrencies are:
Integrity of Transactions
No transfer of cryptocurrency to a third party is possible without the permission and knowledge of the owner. In fact, unlike conventional banking, there is no intermediary involved as the digital currency is transferred straight from the original owner to the beneficiary. Since the owner of the currency has full knowledge and control over his digital money that is hosted on a decentralized network, there is no chance of fraud or manipulation. The sender of the payment cannot stop the transaction or reverse it and once the transaction is complete, he loses all control over it, confirms https://www.forbes.com. There is absolutely no chance of identity theft when using a cryptocurrency platform as they use a “push’ mechanism that permits the currency holder to pay the recipient with no further information unlike credit cards, where the merchant initiates the payment and ‘pulls” the specified amount from your account. It is quite possible for the merchant to make a mistake or even commit fraud by swiping the card twice.
Online Round-The-Clock Payment Tracking
In conventional banking systems, there is usually a time lag between the sender making the request for the payment and the receiver actually receiving it in his account. The transaction may actually not be successful if there is a fault in the instrument, due to lack of funds in the account of the sender or even a clerical error in the bank clearance system. On the other hand, transfer of cryptocurrency is almost instantaneous and the transaction can be tracked with great accuracy. The transfer of digital money is done with the hell of block-chain technology that guarantees absolute security and safety. The foolproof nature of the transfer technology is so attractive that even conventional banks are waking up to the advantage of its deployment.
Available to Everybody
The use of cryptocurrency is completely democratic and universal. Availability on a decentralized network ensures that is can be used by virtually everyone. All that you need is access to the internet using a phone or a computer. In the current context, this means that a population in excess of 4.4 billion has the opportunity to use cryptocurrency, which is over 55% of the population of our world. What this means that access to cryptocurrency is even easier than a debt consolidation loan that requires a good credit score for a reasonable rate of interest. Block-chain applications that are continually being developed are all focused on the concept of making storage and transfer of money more efficient and quicker, and in the process save users from paying through their noses to various intermediaries. Despite its seeming complexity, block-chain currencies are designed to be used by everybody with equal ease and economy.
Complete Security of Transactions and Funds
The increasing popularity of cryptocurrencies is largely due to the transactional data being heavily encrypted with block-chain technology that makes hacking or any other type of fraud impossible. The digital ledger created by the block-chain technology captures all the details of the money trail so that it is possible to pinpoint the location of the money with absolute accuracy, which renders it impossible for anyone to steal the money. This is in sharp contrast to conventional banking or credit card transactions that are open to hacking or misuse.
Cryptocurrency transactions can be done at the speed of light since all the records are held in a digital format. Since it operates on a decentralized peer-to-peer system, it is possible to make immediate payments and conclude asset and property purchase transactions without the usual delays involved in conventional financial systems. Further, even if the transaction is cross-border, the system sidesteps the hassles of currency exchange with its associated costs. Despite its lightning speed, the system ensures that all the details of the transaction are recorded immediately and with absolute accuracy. Cryptocurrency enables even large monetary transactions to be concluded quickly, safely, and without the typical costs that are painful to bear.
Complete Confidentiality and Privacy
As opposed to conventional financial systems operated by banks that require the details of the beneficiary to be disclosed, cryptocurrency transactions can be kept completely confidential and there is no need to capture any details of the beneficially apart from the account number. While confidentiality and privacy is the strongest feature of cryptocurrency, it is to be appreciated that different coins have different levels of privacy and users will have to verify their requirements before choosing to purchase any one.
Lower Transaction Costs
A big attraction of cryptocurrencies is that the cost of transacting in invariably quite low in comparison with the conventional banking system. Typically, users do not even have to pay any charges at all for transferring money because the cryptocurrency exchanges compensate the coin miners for their effort. However, even though there is no transaction fee charged by the cryptocurrency exchange, users availing of third-party services for carrying out transactions would be charged for creating and maintaining their cryptocurrency wallets. However, even these charges are quite low compared to the charges levied by conventional banks.
Cryptocurrencies have multiple undeniable advantages that benefit users and bring in the efficiency of transactions and record keeping. With its innate security features, it also eliminates the chances of manipulation or outright theft. You remain the owner of your funds at all times and have no necessity of entrusting your funds to an intermediary that may compromise the safety of your money.