Important Advantage of Cryptocurrency
As crypto has been rapidly gaining the public eye, it is useful to look into the advantage of cryptocurrency. We’re sure you’re familiar with leading cryptocurrencies like Bitcoin, Ethereum and Dash. Whilst you’re familiar with these cryptos here’s a quick rundown of what crypto is.
Cryptocurrencies are digital currencies created and managed through the use of advanced encryption techniques known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of bitcoin in 2009.
While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April 2013. This was when it peaked at a record 6 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $2 billion at its peak. However, a 50% plunge shortly thereafter sparked a raging debate about cryptocurrencies’ future in general and Bitcoin in particular.
5 Advantage of Cryptocurrency: A New Digital Future
The first advantage of cryptocurrency is the that the fear of fraud is out of the picture. This is because cryptocurrencies are digital and cannot be counterfeited or reversed arbitrarily by the sender, unlike credit card chargebacks.
The second important advantage of cryptocurrency is that there will be no case of identity theft. Usually, 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. Meanwhile, cryptocurrency use a “push” mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant. With no further information! Amazing isn’t it?
Another important advantage of cryptocurrency is that provides immediate settlement. For instance, purchasing real estate usually involves a number of third parties (Lawyers, Notary), delays, and payment of fees. In many ways, according to Gallippi, the bitcoin/cryptocurrency blockchain is like a “large property rights database”. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference external facts.
Another advantage is that cryptocurrencies have lower transaction fees. This is because the network compensates miners. Even though there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service. Services like Coinbase, creating and maintaining their own bitcoin wallets. These services act like PayPal does for cash or credit card users, providing the online exchange system for bitcoin. As such, they’re likely to charge fees.
The most important advantage of cryptocurrency to emphasize is that it is accessible to everyone. There are approximately 2.2 billion individuals with internet access or mobile phones. These people do not currently have access to traditional exchange systems. These are the individuals that are for the Cryptocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer, and micros financing service recently announced a bitcoin device. A timely announcement with the fact that one in three Kenyans now owns a bitcoin wallet.