A New Digital Future: 5 Great Benefits of Cryptocurrency

The term cryptocurrency has been rapidly gaining the public eye over the last couple of years. The creation of bitcoin in 2009 transformed cryptocurrency from being an academic concept to reality. Although the use of cryptocurrency may pose some threats such as promotion of money laundering and funding of terrorism activities, the role played by the currency in ensuring financial inclusion cannot be overlooked.

Below are some benefits of global acceptance of cryptocurrency.

1.Prevents Identity theft

You give the full access to a merchant whenever you give him your credit card even if the transaction involves a small amount. Credit cards operate a ‘pull' in such a way that the merchant initiates the payment and pull the transacted amount from your account. On the other hand, the crypto market applies a ‘push' mechanism that enables the holder of cryptocurrency to send a specific amount to the recipient with no further questions asked.

2. Immediate settlement

You need to involve some third parties (Notary, Lawyers) when purchasing real property. This involves delays and payment of fees before the completion of the transaction. According to Crypto Head's guide on buying XRP, Cryptocurrency acts as a large property rights database by eliminating reference external facts and third party approvals. Cryptocurrency contracts can be designed and enforced to eliminate the additional fees and the need to complete the transaction at a future date.

3. Access to everyone

Around 2.2 billion people in the world do not have access to traditional exchange systems, although they have access to the internet or mobile phones. All of these people are primed for the crypto market. For instance, one in three Kenyans now owns a bitcoin wallet following the recent announcement by Kenya’s M-PESA, a mobile-based money transfer platform, to introduce a bitcoin device.

4. Lower fees

The miners of cryptocurrency are compensated by the network, and therefore there are usually no transaction fees for this currency. However, many users usually involve a third party service like Coinbase, to create and maintain their bitcoin wallets. In any case, when there are fees involved, they are usually very low compared to what formal financial institutions charges.

5. You own it

All the other electronic cash system accounts are owned by someone else, but you own your cryptocurrency account. For instance, if PayPal decides that your account has some reasons violated their rules, they have the power to freeze all of the money held in the account even without consulting you. Whereas you own the private and public key that makes up your crypto account address. Unless you lose it yourself, no one can take that away from you.

Cryptocurrency has a lot of benefits to both the global economy and you as an individual. Crypto markets are completely decentralized, and therefore no government or any other central authority has control over it. For those who find their trust in the traditional banking system unraveling, cryptocurrency offers an alternative where you have complete control of your assets.