Only two years ago, a good majority of people had not heard of the word “cryptocurrency”. Cryptocurrency was not in the glare of publicity and was pretty much an alien concept for most people. But today, it has become a major player on the global stage and is endlessly sparking off a mainstream adoption.
Let’s take a look why.
Advantages of cryptocurrency
Beyond a shadow of a doubt, crypto is a lucrative investment. The most compelling argument in favor of cryptocurrency is that it is fast, convenient and global. With cryptocurrency, the transactions take place over a global network of computers. This means that transactions can be sent almost on the spot anywhere in the world, and despite protracted security measures in place, it hardly takes a few minutes for authentication.
Cryptocurrency is also among the most secure mediums of transactions. As a user, you are always in control of all transactions and since the settlements are being made without your personal details involved, there is clearly no risk of fraud. The robust system of cryptocurrencies makes it more or less beyond the bounds of possibility for fraudsters to break into cryptocurrency. Not to mention, crypto transactions are transparent and pseudonymous. With Blockchain (the foundation of all cryptocurrencies), all transactions can be easily accessed and verified in real-time. Again, these transactions do not have any personal details included, so the user privacy always stays safe – even when the system, in itself, is transparent.
We cannot talk about the advantages of cryptocurrencies and not mention the fact that there are absolutely no regulations, no intermediaries here. What this means is that you will not have to pay a fee to your bank or other financial institutions when you want to use your own money. No intermediaries = no redundant charge for transactions.
One thing that is out of order with our economy is that the supply of currency at any point in future cannot be calculated, which could lead to inflation. Not with cryptocurrency, though. Most crypto supplies are limited – which means the stock can be planned and all sorts of appalling surprises in the future can be avoided.
Should I invest in cryptocurrency?
In defiance of the overabundance of advantages placed at disposal by cryptocurrencies, much of the hype closing in on it is about getting well-off by trading or investing in it. The fact is, cryptocurrency is an inconsistent investment. You may win big or you may lose everything. Don’t forget, cryptocurrency is a currency and not a corporation. There are no financial statements that can be reviewed and no cash flows that can be analyzed. This is why, in this fast and untamed market of cryptocurrencies, cryptos regularly spring up and die, leaving their investors despairing and broke.
Is cryptocurrency really the future of banking, economy, and finance?
Even though the market for cryptocurrency is wild and cannot be relied upon, these rises and falls in crypto values do not change the fact that cryptocurrencies are here to stay. With practically everyone from banks and government bodies to even the savviest of investors being too reluctant to acknowledge the importance of cryptocurrencies at first, they have all caught up on the potential crypto has to reform the modern economy and finance system. Some of the most successful cryptocurrencies such as Bitcoin, Ethereum and Ripple are all set to be a standard form of payment in most parts of the world.