The biggest advantages of cryptocurrency

These days, technology is constantly penetrating further into our lives. Money and economic systems are being affected massively. As a simple example, most of the newest modern payment methods have become digitized as much as we no longer see cash being used on many occasions. Cryptocurrency is also one big example of the digitization of money.

Although paying for things is one of the advantages of cryptocurrency people usually know about, there are many more benefits. Here are some of the most essential advantages of cryptocurrency:

· self-governed

· Easily exchangeable

· Private and secure

· Inflation-proof

· Decentralized

· Negligible transaction fees

· Lightning speed

Without further ado, let’s see what these benefits are in detail.

Self-governed

Governments around the world have almost complete control over conventional currencies (AKA fiat currencies); however, cryptocurrency transactions are saved on hardware that belongs to the miners and developers. They get transaction fees as the reward for mining.

There is no government to have a hand in the process. Therefore, all the records of cryptocurrency transactions are kept accurate by miners and developers, making them totally decentralized.

Also, when working with banks, all transaction history is recorded by the banks and they can hand over the related information to the government whenever they want; however, every transaction on the cryptocurrency system remains unique, and only you and the receiver access the information and history.

Easily exchangeable

Everyone can buy cryptocurrency easily. The process is as simple as making an online payment in an online store. You can buy cryptocurrency using many widespread currencies such as US dollar, European euro, British pound, Indian rupee, Japanese yen, and many more.

There are several cryptocurrency wallets and exchanges on the Internet. People can easily convert their current money into cryptocurrency. What is more, even cryptocurrencies can also be changed into each other easily. All you need to do is to open your wallet app and convert one of your cryptocurrencies into another with minimal transaction fees.

Private and secure

The essence of cryptocurrencies is based on mathematical puzzles. It is absolutely indecipherable. This fact makes cryptocurrency much more secure than ordinary electronic transactions.

When you perform a transaction, even you cannot reverse it. That is because there is a strong encryption technique used throughout the transaction process that protects it from hackers and such threats.

Each cryptocurrency has a unique pseudonym that is unconnected to any user, account or stored data that could be connected to a profile. This is a protective layer to make them as secure and private as possible.

Inflation-proof

Conventional currencies may face inflation and their value may plunge over time; however, cryptocurrencies are released with a fixed amount. Depending on their source code, each cryptocurrency’s amount is specified. For example, there are only 21 million Bitcoins that can be mined in total.

This number will not increase. As a result, the value of cryptocurrencies increases only if the demand increases, to keep up with the market. This fact makes them inflation-proof.

Decentralized

This is one of the biggest benefits of cryptocurrency. Mainly, most cryptocurrencies are controlled by the followings:

· The developers using it

· The people who have a significant amount of it

· An organization that has developed it before releasing it to the market

This makes cryptocurrencies monopoly-free and under control. Consequently, no organization can affect the flow and the value of a cryptocurrency. The result is that cryptocurrencies remain stable, and secure, unlike fiat currencies which are controlled mainly by the governments.

The decentralization reduces the parties involved in a transaction to only the sender and the receiver. There is no need to deal with any third parties. No one will monitor what you are doing.

Negligible transaction fees

A huge advantage of cryptocurrency is that it can be used to send money across borders. In fact, you can call it the borderless currency. Everyone can send cryptocurrencies to anywhere in the world, and surprisingly, with negligible or even no transaction fees. This is the miraculous part. The data miners will receive their compensation from the cryptocurrency network, so there is no or very little charge on the transaction.

It is needless to say that on the other hand, doing current businesses or dealing with the current banking system usually costs a lot of transaction fees, a lot of paperwork, commission, etc.

The reason for this big upper hand over conventional currencies is that in the case of cryptocurrencies, the need for third parties such as VISA or PayPal is eliminated. As a result, the need to pay any extra fees is removed and individuals can send a huge amount of money with ridiculously low transaction fees.

Lightning speed

Not only is cryptocurrency the best option to send money overseas, but the transaction speed is also lightning-fast. In the blink of an eye, you can send a cryptocurrency to everywhere in the world.

The reason for this big benefit is that the verification process requires very little time to end since there are very few barriers to cross. All you need is just some taps in your cryptocurrency wallet app.