A lot of news and online buzz around cryptocurrencies revolve around their price. But what people seem to misunderstand or fail to even ask is why cryptocurrencies were created in the first place. Here are some of the benefits cryptocurrency usage can bring today.
|Image source: cryptodisrupt.com|
Cryptocurrency is a digital currency created from code. So unlike traditional forms of payment, committing fraud using cryptocurrencies is impossible. Likewise, it cannot be counterfeited. It is also not possible for it to be reversed arbitrarily by a user.
Purchasing cryptocurrencies happens immediately. It does not go through a bank, a waiting period, third party approvals, nor does it include payment fees. This makes digital transaction fast, uncompromised, and direct from one person to another.
Traditional credit cards operate through a pull mechanism where an establishment gets an amount from a user’s bank account. This opens up space for faulty transactions and even identity theft. Cryptocurrencies operate using a push mechanism where users can send exactly what they want to send to a merchant.
Cryptocurrencies are managed by blockchain technology that manages and records all cryptocurrency transactions. They are governed by networks and not one authority. This decentralization means users can make transactions on a peer-to-peer basis as opposed to using third parties like banks or remittance centers.
And since cryptocurrencies are digital, anyone from the billions of people who have internet access can use them. This can help people who do not have traditional ways of making or receiving payments.
|Image source: wired.com|