The coronavirus was the most addressed thing last year, and after all this time, it still is the center of attention for most people. However, despite being the prime focus, the talks of this deadly pandemic stopped for a brief moment, and something else stuck everyone’s fancy at the start of 2021. It was none other than the controversial cryptocurrencies. These digital currencies have been the subject of debate for a long time, but this year was different, as people who didn’t even know about them started showing some interest.
Cryptocurrency has become a buzz in recent times due to the sky-high market value of these currencies. At the start of this year, cryptocurrencies like Bitcoin and Ethereum saw their all-time high, and the reason for this was the influence of people like Elon Musk.
Not only people in business but institutional traders and celebrities started taking an interest in these digital coins. Due to their consistently increasing prices, cryptocurrencies have become one of the most prominent assets. Just like real estate and gold, people have started investing in cryptocurrencies to make massive profits.
Understanding the Actual Purpose
However, this was not the case when cryptocurrencies were introduced. In 2009 the first mainstream cryptocurrency introduced to the world was Bitcoin. The purpose of that was to bring forth something that is decentralized and is not either controlled or regulated by any central authority.
The idea of having a form of digital payment that can’t be controlled immediately impacted everyone and distinguished cryptocurrencies from conventional currencies. This led people to buy more Bitcoins and caused the development of other digital currencies, also known as altcoins.
Crypto and Conventional Currency
Apart from these characteristics, various factors made cryptocurrencies huge deals. Things such as faster transactions and easy manufacturing of these coins, also called mining, played an important role in increasing global interest. In the beginning, crypto showed a lot of promise and was said to replace the conventional currency, but the constant rise and fall caused it to fail to live up to that promise.
One of the reasons for its apparent tumble is because people started considering it as an asset. Still, since crypto falls as quickly as it rises, people are beginning to use it for its original purpose, as a form of digital payment.
Since everyone is starting to embrace it as a form of payment, let’s look at some reasons why crypto is better than conventional currency.
- The heavy-duty Security
Since the crime rates are increasing every day, you are always worried about your money. No one likes to lose their hard-earned cash and avoid that; we take measures such as keeping our money in banks and secure safes. Still, our money doesn’t completely become risk-free as it can be stolen through numerous ways, such as fraud.
However, in the case of cryptocurrencies, it is almost impossible to steal them, and how can someone steal something that has no physical existence. Apart from being not easily available, cryptocurrencies are stored in highly secure crypto wallets; these wallets consist of private keys that can’t be accessed by anyone other than you.
- Extremely Low Transaction Fee
The reason why cryptocurrencies were initially introduced was also to cut down the large sums of transaction charges. It is one of the most loved attributes of crypto enthusiasts and gives it an edge over conventional currency. Crypto transactions worth millions of dollars are even saved from the high transaction fees due to having no intermediary.
When we make transactions with conventional currency, numerous things transferring funds, writing checks, and the taker and maker fee make us lose our money on unnecessary things. Which is why making transaction with crypto is way better than conventional currency, however, this doesn’t mean that you won’t be charged at all as third-party applications charge a small amount for their services.
- Best Online Shopping Experience
Since we are talking about cheaper and lower transaction fees, let’s also discuss the benefits you get from shopping with crypto. Cryptocurrencies provide the easiest way to do online shopping and make sure that you do that by achieving the highest comfort level. There are online stores specifically made for you to pay with cryptocurrencies. Not only do you avoid the hassles completely, but you also get special discounts by paying with cryptocurrencies.
Not even clothes and small stuff you can buy cars with bitcoin and other cryptocurrencies.
- Exceptionally Confidential Transactions
An annoying thing about conventional currency is that your entire transaction history gets recorded. Banks and credit agencies keep so much track of your transactions that they have a lifetime history of the trades that you have made; even the most unnecessary details about the way you spend your money get recorded.
On the other hand, crypto transactions are extremely confidential, and even the most basic details are shared with the consent of both parties in the middle of a transaction. Making confidential transactions has numerous benefits, such as saving you from identity theft and blackmailing.
- Simple International Trades
There was a time when making international trades was almost impossible, but as time passed by, things started becoming less complicated; however, it is still not easy to make international trades with conventional currency. Things such as transaction charges, interest rates, exchange rates, and conversion charges cause troubles for everyone who wants to trade internationally.
With cryptocurrencies, you can take full advantage of blockchain technology and easily make cross-border transfers without worrying about exchange rates and currency fluctuations.
- Irreversible Transactions
One of the biggest frauds that are being done these days is by amending the transactions; however, it is impossible to reverse crypto transactions. Not even governments have the power to change a crypto transaction that has been made. It would be best if you remembered to be extra careful when transferring cryptocurrencies as you cannot file a chargeback, and the only way for you to get your precious coins back is when the recipient decides to send them back.
- Sole Ownership
A thing about conventional currency is that you never fully own it; there are many cases where your bank account gets closed by the bank or the government; in other cases, your money gets transferred to someone else when you die. However, in the case of crypto, you have complete control over your wallet and are the sole owner of your currency.
- Worldwide Adaptation
One of the unique things about cryptocurrency is that there are more than 1200 cryptocurrencies, and almost all are accepted worldwide. Currencies such as Bitcoin, Ethereum, Binance Coin, and XRP are being used worldwide. An example of the adaptation of these currencies is the crypto ATMs that are located in numerous countries.
- Faster Than Conventional Currency
Conventional currencies take days and even weeks when you transfer them through baking systems, whereas cryptocurrencies allow you to make transactions within minutes.
- A Great Investment Option
As we discussed earlier, people also consider cryptocurrencies as a form of investment. Despite the high volatility risk, investing in crypto is much more profitable because conventional currency loses its value over time, whereas crypto always increases in value.
These were some of why crypto is much better than traditional currency; however, this doesn’t mean that you spend all of your savings on crypto. This guide was just a way for you to consider all the facts before making any financial decision. Another smart thing would be to take advice from professional financial advisors when you don’t know what to make.