fbpx

7 benefits of Cryptocurrency

Benefits of Crypto

So let’s discuss the benefits of Cryptocurrency Blockchain today, I believe you’ve heard about Cryptocurrency Blockchain, if you’ve not heard already, you must be living in the past?

Having emerged as a digital alternative to more traditional methods of exchange like cash or credit cards, cryptographic or cryptocurrencies have also generated alternative points of view.

The high value of the most common and currently the highest Cryptocurrency, Bitcoin, have established cryptocurrency as a viable investment which – with the positive hype surrounding the blockchain technology that backs it up – can have a positive impact on the wallets and trading practices of mainstream investors, worldwide.

It’s no more percieved as just a virtual currency as it used to be, crypto is getting more popular each and everyday, top investors and Government bodies are already getting into the game.

A recent show up by Mark Zuckerberg’s Facebook in the Crypto market will tell you how popular Cryptocurrency gets at the moment, the company joins a decent number of big names to create a Cryptocurrency or Crypto coin which they name Libra.

In this article, we’ll be looking at the benefits of the Cryptocurrency Blockchain and considering the plus points that make it a workable alternative to more established forms of financial trade.

  1. Decentralization
    One of the biggest draws of cryptocurrency and even the blockchain, in general, is its leaning towards decentralization. While it can be applied to many different things, the main idea involving all decentralized systems is that they can’t be controlled by any one authority.

This makes them more democratic in nature, and it means that you don’t need to worry about one entity being able to make off with your funds or that the system will be shut down by outside interference.

2. Transaction Fees

This is also a very good benifit of using Cryptocurrencies, you’ve no doubt read your monthly account statements from the bank or credit card company, and balked at the level of fees imposed for writing checks, transferring funds, or breathing in the general direction of the finance houses involved. Transaction fees can take a significant bite out of your assets – especially if you’re performing a lot of transactions in a month.

Since the data miners (remote and separate computer systems) that do the number crunching which generates Bitcoin and other cryptocurrencies receive their compensation from the cryptocurrency network involved, transaction fees usually don’t apply.

There may be some external fees involved if you engage the services of a third-party management service to maintain your cryptocurrency wallet, but another one of the advantages of cryptocurrency is that they are still likely to be much less than the transaction charges incurred by traditional financial systems.

3. Easier International Trade

Also a good benifit of crypto, have you ever done an international money transfer using the local banks? then you must know how hectic and costly it is, though it’s largely unrecognized as legal tender on national levels at present, cryptocurrencies by their very nature are not subject to the exchange rates, interest rates, transactions charges, or other levies imposed by a specific country.

And using the peer-to-peer mechanism of the blockchain technology, cross-border transfers and transactions may be conducted without complications over currency exchange fluctuations, and the like.

4. Individual Ownership
In a traditional banking or credit card system, you effectively turn stewardship of your funds over to a third party that can exercise the power of life or death over your assets. Accounts may be closed without notice for infringements of a financial institution’s Terms of Service – requiring you as the account holder to jump through hoops in order to get yourself back into the system.

Perhaps the greatest of all advantages of cryptocurrency is that unless you’ve delegated management of your wallet over to a third party service, you are the sole owner of the corresponding private and public encryption keys that make up your cryptocurrency network identity or address.

5. Strong Security

This is one of the best benefits of Cryptocurrency Blockchain, once a cryptocurrency transfer has been authorized, it can’t be reversed as in the case of the “charge-back” transactions allowed by credit card companies. This is a hedge against fraud which requires a specific agreement to be made between a buyer and seller regarding refunds in the event of a mistake or returns policy.

Finally, the strong encryption techniques employed throughout the distributed ledger (blockchain) and cryptocurrency transaction processes are a safeguard against fraud and account tampering, and guarantors of consumer privacy.

6. Identity Theft

When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency use a “push” mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information

7. Access to Everyone

It was recently reported that there are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to traditional exchange systems. These individuals are primed for the Crytocurrency market.
There are several other benefits of Cryptocurrency Blockchain, that is why you need to sign up to Life with Crypto, a place you learn, grow and connect with Crypto experts as well as beginners.

Join the community to get more detailed informations about Cryptocurrencies, Blockchain and money, our educational materials here at life with Crypto are created with beginners in mind, get into the community and explore more.

Related Articles