The following statements do not constitute investment advice or any other advice on financial services, financial instruments, financial products, or digital assets. They are intended to provide general information. The following statements do not constitute an offer to conclude a contract for the purchase or sale of financial instruments and financial products or an invitation to submit such an offer and to buy or sell any particular digital asset. Cryptocurrencies are subject to high fluctuations in value. A decline in value or a complete loss are possible at any time. The loss of access to data and passwords can also lead to a complete loss.
Transactional freedom, security, and ease of transaction are among the most important advantages of cryptocurrency.
Cryptocurrencies have the potential to reshape the financial world as we know it, and to question the very existence of traditional financial infrastructure. They are becoming betterknown and more popular throughout the entire world. However, being relatively new, you may not be familiar with it or why it’s even a big deal. Let us help and explain a little more why cryptocurrencies will change the world as we know it today.
Basically, cryptocurrency is electronic money stored in e-wallets or computer files. Also, cryptocurrency is transferred and tracked by using blockchain technology. This technology tracks every update or transfer chronologically. Then, it stores the information cryptically so that anyone can see it. However, existing data cannot be changed. Transactions are stored in a publicly available ledger which is virtually unhackable, unmodifiable, and available in real time to anyone on earth.
Bitcoin is one of the most well-known cryptocurrencies out there and the real first application of the blockchain technology, the underlying layer behind cryptos and probably one of the most important inventions of our lifetime. Additionally, there are thousands of different cryptocurrencies available. Not all cryptocurrencies serve the same purpose. While some are for general use, others solve specific problems and/or serve specific industries.
Cryptocurrency may seem like a technology of the future. It has, and will, revolutionize the way we store money, pay for goods and services, and do business. Additionally, there are other ways that cryptocurrency will make the world a better place.
Here is a list of some of the most relevant benefits of cryptocurrencies:
- Transaction speed & cost. With cryptos you can send any day anytime to anyone on earth funds in real time without waiting for banks or businesses to open. Cost of transactions are a fraction of the traditional financial system.
- Return control to people of their money. You can choose how to store, send, spend, or transfer your cryptos yourself. It is not subject to the rules and regulations imposed by banks and other financial institutions.
- Always open markets. Availability 24/7 365 days per year. No downtime or business hours dependency.
- Accessibility to anyone, no barriers, no control from a single country or entity. You only need a computer or smartphone.
- Security. Transactions are secured by the nature of the blockchain system and the distributed network of computers verifying transactions. As more computing power is added to the network, it becomes even more secure.
- Transparency. All cryptocurrency transactions take place on the publicly distributed blockchain ledger. There are tools that allow anyone to look up transaction data, including where, when, and how much of a cryptocurrency someone sent from a wallet address. Anyone can also see how much crypto is stored in a wallet. This level of transparency can reduce fraudulent transactions. Someone can prove they sent money and that it was received or they can prove they have the funds available for a transaction.
- Potential Inflation Hedge & Diversification. Some Cryptocurrencies such as Bitcoin or Ethereum are called deflationary because their circulating supply is either reducing or limited to a fixed quantity that cannot be modified by anyone. Bitcoin per example has a hard cap on the total number of coins that will ever be minted. So, it is really a protection against inflation. Cryptocurrency can offer investors diversification from traditional financial assets such as stocks and bonds.
- Cross Border Payments (Remittances). Cryptocurrencies have no regard for national borders. An individual in one country can send coins to someone in a different country without any added difficulty. With traditional financial services, getting funds across international borders can take a long time and come with hefty fees. In some cases, doing so might not even be possible due to regulations, sanctions, or tensions between specific countries. But again, cryptocurrency gets around all of that, as users can engage in peer-topeer transactions from anywhere in the world.