Traditional currency and its custodians (governments and banks) have numerous challenges that the world seem to ignore. A government could collapse, and banks are always a financial mistake away from shutting down. Cryptocurrencies with their ever-improving technology can resolve most of these problems. Here are 10 ways cryptocurrencies are better than real money.
Offer Faster ways to Transact
Hundreds of millions of dollars are transferred through the blockchain (a digitized, decentralized and highly secure ledger) from one point to another within minutes. Some cryptocurrency networks facilitate lightning speed transactions, with some also keeping the users anonymous. The closest to bitcoins in enabling fast transactions are wire transfers and credit card transactions. Still, they fall short of the speed cryptocurrencies offer.
Real money transfers are:
- Time consuming-sending large amounts of money through bank transfers can take days
- Sending real (paper) money across the world could take weeks.
- Real money transfers are guarded by many regulatory bodies that lengthen the time it takes to complete a transfer.
Since 2015, banks and tech startups have been leveraging the low costs of the blockchain network to send and receive funds. A number of established organizations have already integrated the payment system. The biggest benefit of the blockchain is that it’s much cheaper to use. To send bitcoins is ideally supposed to cost nothing. However, cryptocurrency holders often incur service charges when transferring bitcoins through an exchange platform. Still, costs incurred when sending money through the blockchain are much lower than bank-related costs.
Some cryptocurrency networks such as Monero provide complete anonymity to users who transact on their blockchain network. Almost every other cryptocurrency that relies on cryptography (coded language) to secure their users’ details provide much better security than a normal bank. The addresses used by bitcoin users can’t be used to reveal people’s real personal details.
More Freedom to transact
The blockchain is decentralized and lacks an intermediary to make regulations. This provides more freedom for its users. A cryptocurrency owner can send or receive coins at any time of the day. The transaction can involve any amount of money. No bank or alternative means of payment provides such freedom of transacting.
Easy to Open an Account
Where opening a bank account is strenuous, cryptocurrency offers a better alternative. Acquiring a bitcoin address is easy and fast. It takes a few minutes or hours to setup an account on an exchange platform that allows you to gain cryptocurrencies. Opening a bank account, by contrast, can be difficult on certain occasions.
Banks are safe from Chargebacks
Cryptocurrencies do not expose businesses to charge back risks. Once a customer sends you digital coins, they can’t retrieve their coins. This reduces the risk that chargebacks could affect a business’s profitability.
While real cash can be destroyed, cryptocurrencies can’t. Once you secure your cryptocurrencies in a digital wallet, your bitcoins may stay there for as long as possible. Of course, it’s possible to lose your bitcoins, but destroying them is impossible. Bitcoin is an intangible asset after all. You can’t see it. You can’t hold it.
Cryptocurrencies are easy to carry. They are electronic and can be secured inside a mobile application. By contrast, you easily can’t carry a million dollars in a bag without making some enemies. You can’t carry a hundred million dollars on your own.
The coded nature of data in cryptocurrency transactions protects users against fraud. The receiver of cryptocurrencies can’t see details about the sender. By contrast, walking with real cash anywhere is a security threat. Both credit cards and bank payments method have vulnerabilities that can lead to fraud also.
There is a Brighter Future in Cryptocurrencies
Any positive advancement in the blockchain technology will continue to disrupt banking systems. The disruptions are already happening. Banks and tech startups have begun using cryptocurrency networks to complete transactions. Merchandises are already accepting bitcoins as payment. The future looks brighter for bitcoins compared to real money. Learn more, https://www.abitgreedy.com
Real money may not go away immediately. But adoption of cryptocurrencies will likely change money transfer payments for the better. Don’t wait until changes catch up with you. Enjoy your life but stay updated with changes happening around the world.