Cryptocurrencies, virtual currencies, are digital methods of exchange made and used by people and groups. Cryptocurrencies are not under regulations by national governments. And because of that, they are marked as alternative currencies that exist outside state monetary policies.
Cryptocurrencies GetBitcoin Live Account have grown in popularity in the recent decade, spawning various other digital coins that have been at the center of financial discussions and technological debates.
Even though there are perceived risks and disadvantages regarding this revolutionary tech, there are also a plethora of reasons why people are betting on cryptocurrencies as the future of finance.
Nearly all cryptocurrencies are designed to be scarce, meaning there is a finite supply. The source code tells us how many units can ever exists. For instance, Bitcoin has a cap of 21 million units. After reaching that amount, no more Bitcoins can ever be created.
And because of this nature, cryptocurrencies are more similar to precious metals than fiat currencies.
Independence from Government Currency Monopolies
Cryptocurrencies Bitcoin Exchange provide a good way of exchange outside the direct control of national banks like the US Federal Reserve and European Central Bank.
This feature is especially appealing to people who are worried about quantitative easing and other variations of loose monetary policies.
Eventually, economists as well as political scientists believe that governments will co-opt cryptocurrencies or cryptocurrencies’ features into fiat currencies.
Cheaper than Traditional Electric Transactions
Cryptocurrencies’ features like blockchain, private keys, and currency wallets help solve the question of overspending. These help guarantee that new cryptocurrencies won’t be abused by tech-savvy thieves who can duplicate digital funds.
Cryptocurrencies’ security also remove the need for third-party payment processor to authenticate and validate every electronic financial transactions.
Consequently, this also gets rid of the need for transaction fees that support the payment processor’s works. This is because miners, who serve as payment processors to cryptocurrencies, receive new currency units for their work on top of optional transaction fees.
Cryptocurrency mining is a built-in quality control and policing system. Miners get paid for their efforts, so they have the financial stake in keeping accurate and updated transaction records. Overall, this secures the integrity of the system as well as the value of the cryptocurrency.
Fewer Barriers to International Transactions
International transactions aren’t treated any differently from domestic transactions when it’s done through cryptocurrencies.
The transactions can either be free or be with some transaction fee regardless of where the sender and the receiver are located. This is a great advantage when compared side by side with international transactions with fiat currencies, which almost always sport some special fees that aren’t found on domestic transactions.
And direct international money transfers can be very heavy on the wallet as fees sometimes growing 10 to 15 percent of the transferred amount.
Privacy and anonymity are two of the greatest concerns when it comes to finance. These two have also been the chief worries of early cryptocurrency proponents.
Most cryptocurrency holders use pseudonyms that are not connected to any information, accounts, or stored data that could be used to identify them.
Even if it’s indeed possible for highly skilled community members to guess the user’s identity, newer cryptocurrencies after Bitcoin have extra protective features that make it more difficult.