Before 2020, you might not even have heard the word cryptocurrency once a month. Now, it has become a household term, and more people have become aware of the applications. It started with the simple thought in mind of developing a more efficient way of transferring currency. From that cryptocurrency has evolved into an entire ecosystem that sustains marketplaces, content creation distribution, active participation in real-world decisions, and so much more. Essentially, every cryptocurrency was developed to solve a problem that others could not, and as time passed, we wound up with many more.
If you are looking at starting trading then CoinSwitch is the place to start. This user-friendly app and website offer insights into cryptocurrency trading. Along with this, the exchange platform offers a wallet service too! If you are looking to invest in a particular currency you can go to the app and find out all about it. For example, if you are looking to trade Litecoin, then you can find out everything about the currency from the Litecoin price to the performance of the day, month, and even an entire year. This gives you a unique perspective that helps in making informed decisions.
Let us take a look at the advantages of cryptocurrency that have made it a resounding success in the past few years.
Advantages of a cryptocurrency over FIAT currency
- Irreversible transactions – In a lot of cases, the cause of the rift between 2 parties has been the fact that transactions or contracts can be reversed to commit fraud. However, once you have confirmation of money sent using crypto, nobody can reverse it and that includes the person who designed it. This paved the way for smart contracts. They are automated contracts that act upon the predetermined terms on conditions based on the completion of the task. This property of the cryptocurrency not only makes it reliable but also safe.
- Hidden identities – If you wish for your identity to remain a secret, it can be done while transacting using crypto. Neither the accounts nor the transactions are required to be attached to your real identity. While it is possible for the transactions to get tracked and analyzed, it is impossible for the identities to be connected with them.
- Faster transactions – Cryptocurrency is all set to overthrow the old ways which are being used to transfer money. Cross-border transactions used to take days and cost a fortune. Thanks to cryptocurrency, both these have reduced dramatically. Since the transactions happen in a global network of computers, the time taken to send and receive money is very less.
- Secure – Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the use of impossibly big numbers make it impossible to break this scheme and get hacked. This also means that there are no third parties involved. In any online transaction, there is a third party involved that facilitates the transactions and this makes your data and money vulnerable. This is not to be confused with when your money is on the exchange platform or not stored in your wallet for a long-term purpose.
- Permissionless – There are no special requirements to make use of cryptocurrency. You don’t need licenses, approvals or permissions to get started. Anyone with the right resources and knowledge can jump on the crypto wagon. There is no private company that looks at your credit score or rates and ranks you. The beauty of this is that anyone can start anytime by simply installing the software.
It is quite clear that crypto is solving problems that people have been looking to solve for ages.
The importance of cryptocurrency cannot be emphasized enough. Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money promises to preserve and increase its value over time. Cryptocurrencies are also a fast and comfortable means of payment with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black markets and any other outlawed economic activity. But while cryptocurrencies are more used for payment, their use as a means of speculation and a store of value dwarfs the payment aspects. Cryptocurrencies gave birth to an incredibly dynamic, fast-growing market for investors and speculators.
The future of cryptocurrency
The future’s not set in stone, but it is quite clear that cryptocurrency will be a part of it. If you look at the value of BTC in INR or ETH in INR, you will realize that these have gone up to half a crore almost for 1 token. These digital assets will be more valuable as time goes on since the number of tokens is going to remain the same whereas the demand is going to increase exponentially.
Ripple has been focusing on streamlining cryptocurrency and bridging the gap between FIAT currency infrastructure and crypto. Since its inception, the sole focus has been to make cryptocurrency easier to adopt and engage with major financial institutions to streamline the use of crypto.
With so many minds on the job, it is hard to imagine a future without cryptocurrency. Certain cryptocurrencies may rise or fall but cryptocurrency as a concept is here to stay.