Why are Cryptocurrencies the Future of Money?
Crypto landscape has grown beyond leaps and bounds in the last decade. However, the last couple of years have been pivotal for the crypto spring. This unprecedented growth of cryptocurrencies or the digital currencies can be credited to potential promise of radically transforming the traditional financial systems. Its most ardent advocates tout it as the “future of money.” They have a ton of good reasons to make that claim.
Here are the five reasons why cryptocurrencies are the future of money.
Full Control of Funds
In the present financial system, the government entities usually control the banks and other financial institutions. They also have the authority to introduce regulations. The actual fund owners have no say in the regulations or the transaction process and have very less control over their money. The cryptocurrencies, on the other hand, offer fund owners complete autonomy and full control of their funds. There is no centralized regulatory authority overseeing the trading. The fund owners’ wealth is stored in a decentralized store of value, and the money is directly transferred from the owner to the recipient.
Faster Transaction
Transparency Market Research’s recent report predicted that the market for cryptocurrencies was set to explode in the coming years due to a “consolidated landscape” and “rapid transaction capabilities.” The popular cryptocurrencies have faster transaction speeds in comparison to the mainstream payment methods. It is all due to their networks’ advanced processing capabilities. In the near future, these capabilities are going to improve further, making the digital currency more viable for the transaction than the fiat currency.
Secure and Safe Technology
In recent years, people are increasingly adopting electronic payment methods. This has led to an increase in fraudulent transactions as the technology used to run them may not be tamper-proof; such payment methods can be an easy target for cybercriminals. They, however, cannot manipulate or tamper with blockchain, the technology that enables cryptocurrencies. Blockchain is a time-stamped series of blocks that record data in hash functions, which makes it difficult to overwrite data. As the data is immutable, and there are no centralized points to manipulate as well, the cryptocurrency payment methods are very secure and safe.
Peer-to-Peer Cryptocurrency Exchanges
The peer-to-peer cryptocurrency exchanges eliminate the need for a centralized authority, offering complete financial freedom to the fund owner. Only the sender and the receiver are involved in the transaction process, and as there is no third-party involved, there is no amount of friction between them.
Low Transaction Cost
Cryptocurrency payment can be sent and received at a nominal transaction fee as the exchange happens between person-to-person just like a cash transaction. There are no financial intermediaries involved, and the miners, who verify and add transactions to the digital ledger, are compensated by the network. The users do not have to pay any transaction fee that financial institutions usually charge if they use credit cards or other electronic payment methods.
