Cryptocurrency has become one of the expert picks in investment and making and receiving payments however is it practical to use crypto every day?
Come with us as we answer this question while looking into cryptocurrency and its effects.
Cryptocurrency: The Basics
Cryptocurrency is a versatile means of financial exchange that can be used to make payments, receive money, and also used for investment purposes.
Cryptocurrency is protected by what is called cryptography. Cryptography, also known as cryptology, is the study and practice of certain techniques that are used amid adversarial behavior. It is used to facilitate secure communication within the network.
Cryptocurrency: The Government and Banks
Cryptocurrency is widely loved by many because it is decentralized. This means that no one power controls cryptocurrency meaning that everyone is seen as an equal. This also means that banks and the government have little to no control over cryptocurrency.
The truth is that some governments see crypto as a threat to the traditional way of using money. Not only does cryptocurrency threaten traditional ways of banking but it also threatens banks. However, unlike crypto, banks can offer clients a sense of security and much-needed assurance.
It’s also important to remember that although banks may feel threatened by crypto they can also learn from it. Blockchain technology can greatly assist in taking banks and banking technology to the next level.
Another impacting factor to cryptocurrency is that many some countries regard it as an asset. This is not exactly false as crypto increases in value which is what an asset does. An asset can also be bought and sold and used to meet any debts, commitments, or legacies. An asset can also be used to yield positive economic value which is exactly what cryptocurrency is currently doing for the public and its users.
This means that the government will still be benefiting from cryptocurrency even if it was made the new means of financial exchange.
Cryptocurrency: Is it Practical?
The first truth related to cryptocurrency is that it would hinder many businesses such as the Forex market. The Forex market relies heavily on fiat currencies and although it is decentralized it would also face the effects of crypto.
We also need to keep in mind that certain countries would fail due to the lack of technology. Many informal businesses rely on the daily exchange of physical money. It makes the process of their exchange easier however with the introduction of crypto this would change drastically.
The good thing about cryptocurrency is that it is universal. This would mean that you can use it anywhere in the world as long as the person you are making a transaction with is using the same crypto. This would make it easier to conduct a transaction from anywhere in the world.
Cryptocurrency: The Online World
Cryptocurrency has assisted greatly in the online world by making things easier, quicker, and simpler. Due to the fact that crypto is digital exchanges can be done in minutes. This takes away the waiting time that some may experience when making a payment.
Another good thing about crypto is that it protects your personal banking information. Many of us, to make online payments, input out credit or debit card information. Unfortunately, this can spell disaster as many online platforms are built to steal such information. There have also been issues of third parties stealing personal information and using it illegally. When one is using crypto they can avoid these making it a first choice.
Final Thoughts
Cryptocurrency is an amazing way to exchange finances however there is still a lot of work that needs to be done for it to become a practical means of exchange. Certain countries would need to catch up technologically and many other changes would need to be made. The consequences of fiat currencies being phased out would cause major issues making it difficult to do so.
