Last couple of years have seen digital currency in the form of cryptocurrency boom in the financial markets. The instruments has been rapidly gaining the momentum. It might have been an unfamiliar financial investment at first, even scary for some to comprehend. However, cryptocurrency has become valuable in the eyes of people, globally.
How can we define it in a line?
To define in a simple manner, cryptocurrency is a form of digital money created through coding.
Today, there are different types of cryptocurrencies, among which the popular forms include Bitcoins and Ethers. These cryptocurrencies are seeking help of an extensive network of Blockchain Technology in order to keep itself safe. Therefore, while investing in cryptocurrency, you can be assured of no form of frauds or cases of counterfeit.
Here are a few ways through which you can benefit from cryptocurrency:
- No third party involvement
Unlike real estate, shares, and bonds, Bitcoins and cryptocurrencies do not need the involvement of a third party. The platform for purchasing and selling is devised along the lines of a database which completely eliminates the need of external forces thereby making it secure. This makes the transactions free of added costs. The fee tends to be either zero or negligible. Unlike shares and debentures, end users can earn maximum profit for themselves. But what about the miners involved? Well, miners are compensated for the work done through the help of internal networks.
- Identity theft
As common as identity thefts are to most people in terms of banking (credit cards) and transactions of shares and bonds, this is not so in the case of digital currency. Cryptocurrency operates on a push system, unlike the traditional pull one. This mechanism helps the holder of the digital currency to send what they want to share, nothing more than that. Your identity is kept safe and completely anonymous.
- Global reach
Cryptocurrencies can be accessed globally, of course you will need smartphones, laptops and internet connectivity. Individuals with these devices can easily indulge in the transactions of digital currencies. There is no restriction on anyone from any country when it comes to mining bitcoins.
- Universal exchange rate
Digital currencies, unlike traditional forms of currencies are not regulated by a Government or a system. They are universally accessible and this is what makes them easy and convenient. This implies that all kinds of other costs, including their interest rates can be transacted at an international level, without worrying about any forms of exchange rates. This is not only going to save you time but also your hard-earned money.
The blockchain technology network on which the cryptocurrencies are based are jointly managed. There is not centralisation in this management. This decentralisation is based on a peer-to-peer basis. This ensures there is mass collaboration which also implies not only authority is responsible for the management of the same. There are several mechanisms working at the same time.
Even though there are too many benefits to state, digital currency still has many hurdles to cross in order to completely replace traditional forms of money. The picture for global commerce could be revamped if cryptocurrencies are adopted on a universal level. For that to happen, it might take some extra time. People in some parts of the world are still unaware of their existence, which makes it even more worse. However, if accepted on a global level, cryptocurrencies are going to allow you to have unilateral control over your money. The transactions are going to be secure and fast and are going to initiate many fundamental changes on a global economic front.