Advantages of Cryptocurrency

What are cryptocurrencies?

First, you should know that cryptocurrencies – also known as bitcoins – are an intangible and decentralized means of payment alternative to traditional money. We can carry out operations using digital encryption through these virtual currencies, which provides it with security without intermediaries’ need.

How are they different from traditional coins?

Cryptocurrencies cannot be stored on credit cards or materialize on paper. In this case, the money is in virtual wallets protected by a chain of blocks or a database called Blockchain. In these portfolios, also called a wallet, all operations performed by anyone who has a cryptocurrency are recorded.

 

What are cryptocurrencies for?

Cryptocurrencies are still currencies but digital. This means that they have the same use as any other physical currency. Thus, we can make payments between people. Companies like Microsoft, Destinia, WordPress, among many others, already allow buying with Bitcoins, Ethereum to INR or other Cryptocurrencies, on their web pages.

Advantages to Cryptocurrency

Here are the advantages of cryptocurrency:

  • The transactions with cryptocurrency are instantaneous. A Bitcoin transaction, for example, is received in a few seconds and begins to be confirmed in the next 10 minutes; you have to wait from 1 to 6 or more confirmations, depending on the amount. Each confirmation exponentially decreases the risk of reversing a transaction. Such as Lite Coin to INR
  • Transactions with bitcoins or cryptocurrencies hide the identity of the user. Anyone can view the funds and transactions taking place in a Bitcoin address. The user’s identity is not known unless it is revealed during a purchase or for other reasons. This is one reason why good practices should be adopted, such as Bitcoin addresses being used only once.
  • The system promotes transparency and unique records. The accounting book or decentralized ledger allows access to it freely, at any time, to verify cryptocurrency transactions that have been registered and cannot be modified.
  • Facilitate international transactions. The respect that Blockchain technology has earned from technology and financial companies has made companies, financial entities, or people of different nationalities operate and make electronic payments with the same virtual currency. Such as Ripple Price in INR.
  • Profits can be made with speculation. The Bitcoin market keeps on fluctuating, as it has not yet reached its full potential. The periods of high volatility interest investors due to the trading and buying and selling opportunities offered by this cryptocurrency. Speculators are necessary as they bring liquidity to the Bitcoin market that would otherwise be very difficult to come by.
  • The important technological and telecommunications advances transformed the sending of remittances, from a market that used money orders to the current one dominated by electronic transfers, which reduce costs and time and reach remote and difficult-to-access areas. The cryptocurrency allows network access to 4 billion people who do not have opportunities to operate with banks, credit cards or other means of payment and need to make remittances, export and import goods, etc. Thus, they can operate through the internet or a mobile application to make these electronic payments and other operations.

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