People are always a little sceptical and hesitant about new concepts. It takes time for people to accept the changes it could bring into their lives. The cryptocurrency was one of those new concepts that have put people through many apprehensions and dilemmas. But, over the past few years, cryptocurrencies have gained a lot of recognition. This new concept, if applied has the capacity to change any industry.
Cryptocurrency is a digital currency. This is not owned or controlled by any government institutions, it is an independent network that will provide people with security and anonymity while performing a transaction. It was mainly designed to work as a medium of exchange and keep transactions secure.
Cryptocurrencies function through distributed ledger technology i.e., a public financial transaction database. Bitcoin was the first cryptocurrency to be created in 2009. It has captured the attention of investors and media since then. Investors are taking an interest in these cryptocurrencies and many of them are planning to invest in them. If you’re also one of those people planning to trade with cryptocurrencies there are many best cryptocurrency exchanges in the market that will make selling and buying cryptocurrencies easy.
Now cryptocurrencies are gaining recognition. So it is important for businesses to understand it and see how it helps your business.
Here are a few advantages of cryptocurrency
External authorities such as central authority or bank can access an individual’s data without permission, whenever they want. The data thefts and scams are increasing alarmingly and authorities are doing no good in protecting the information. But with cryptocurrencies, the data of the transaction and the personal information of the parties can be secured and protected.
You have complete control over your data and no one can duplicate, copy or destroy it. It gives you security, privacy and protection. Can you imagine creating a bank account without providing your name and address proof? Impossible, right? But with cryptocurrencies, you can create infinite wallets without providing any information such as your name, address, etc. You don’t have to worry about others knowing your identity while performing a transaction as it keeps your identity anonymous.
Transparency and security
Each and every transaction you perform is recorded on a public database. You can check all your previous transactions and anyone on the database can also see them. It provides you transparency along with protecting your data. The public database or blockchain keeps a record of everything. If people use the crypto address publicly, then others can see the details of other cryptos they own.
If the address is not publicly confirmed, then nobody can know who it belongs too. You can be assured of security as all your transactions are secured using cryptography. No one, other than the owner can make a payment from the wallet, unless and until the wallet is hacked. And rest assured it is highly impossible to hack a wallet.
How fast is your bank? How many days does it take for your transaction to complete? If the receiver stays in another country then it would cost a lot of money and time to send money. The cryptocurrencies are based on blockchain technology, with cryptocurrencies you can remove delays in payments. It processes a transaction within a fraction of a second. These transactions have made it more accessible for international trade as it is removing all barriers and restrictions.
It has made it quite easy to accept payments in different currencies. If you’re a business that has branches internationally then with cryptocurrencies you can save your time and sent payments across at a low fee. For a transaction to be processed you must pay bank transaction fees or bank charges and these fees are high, but with cryptocurrency, you can send across the payments a low to no costs.
Cryptocurrencies are designed in such a way that you can either add or eliminate a third party approval, reference external facts and future contracts too. In one way or the other, cryptocurrency can be considered as a “large property rights database”. While selling or buying a property involves third party delays of payment of fees etc. But with cryptocurrencies, the payment worries can be put to rest.
Since cryptocurrencies have international recognition it becomes easy to perform a transaction. The cryptocurrencies can be designed in a way that you don’t need any third party approvals. Mobile phones are accessible for everyone, but not all of them have access to exchange systems. If all the individuals are given access to the systems and digital wallets then they can easily transfer money.
In the traditional banking system or credit card system you depend on a third party to supervise or take care of your property. But giving them power over your assets is not always the right idea as they can misuse it too. Financial institutions hold the power to close your accounts without giving any notice. And they have the ultimate power control over your accounts.
If your account is closed you must jump through several hoops to get back into the system. The advantage of cryptocurrencies is that you’re the sole owner of your account, unless and until you delegate the management to a third party. With cryptocurrency, you can eliminate or add third party approval. Your identity and address are kept safe and you don’t have to worry about others controlling your assets.
Over these past few years, cryptocurrencies have gained recognition and many organisations are planning to introduce the blockchain technology into their businesses. It offers you both security and data protection. People don’t care about others’ privacy nowadays. It is impossible to open a bank account without presenting your information. But there are high chances of them misusing your information. Identity theft has become a major issue in the market. With cryptocurrencies, you can be assured.
These cryptocurrencies offer security and transaction fees are also low. Since cryptocurrency is digital it cannot be reversed or counterfeited by the others. Using it will reduce frauds and data thefts and improve security. Cryptocurrency is decentralised, no central authority or banks control your transactions, you’re the sole owner of your transactions.