Cryptocurrencies are getting more popular, but why someone to use them? 

digital-currencies

Cryptocurrencies like Bitcoin, Litecoin or Ether are getting more popular among people as more companies tend to accept them as a mean of payments.

Cryptocurrencies are not bound by geography or any Central Bank.

Out there, exist over 3000 cryptocurrencies, some of them created to become an alternative way of payments and some of them are created just for “fun” or to be part of fraud schemes.

As the economy of the world is becoming more unsafe, people are trying to find the best “safe assets” to invest their money. What happened in Cyprus back in 2013 when the central Bank wanted to take uninsured deposits to recapitalize itself is an example of the unsafe economy. On this matter, cryptocurrencies are decentralized, meaning that you own them and no central bank or government has authority to control it.

Why people to use them? Cryptocurrencies have some advantages:

1) Better security than cash or cards transactions

Cryptocurrencies are encrypted which means that is difficult to get ripped off during a transaction when giving your card to a merchant. The merchant gets exactly what you send without any further details.
Also, is much easier to lost a wallet full of cash.
As more and more of our transactions are online, security is the core fact to keep fraudsters away from your money at the point of a transaction.

2) You have mobile with internet connection but no access to traditional exchange system? Don’t worry

Billions of people currently in the developing world use mobile devices with internet connection thus make the transactions with Cryptocurrencies to be a reality. You just need a “wallet” and you can easily make financial transaction with no need to go through the traditional financial system.

3) Cyprocurrencies are designed for low cost, no-fee transactions

Usually there are no fees in transactions with Cryptocurrencies. Users pay charge fees only to third party providers when creating “wallets“. These providers actually act like the online exchange system for Cryptocurrencies.

4) Minimise the exchange rate risks when doing business or travelling frequently

Your transactions are always exposed to currency exchange rate risks and fees to exchange one currency to another. The universal recognition of Bitcoin at a given value helps to minimize these risks.

5) It’s your money and nobody can take control

Traditional money retaining systems like bank accounts, accounts with brokerage firms or even technology advanced accounts like PayPal, have their own terms and conditions that when they decide for some reason that you have violated these service terms, may suspend your account or even cause you to have to pay more fees and receive fewer funds. On the other hand, you tottaly own the Cryptocurrency. You are the only owner of the “keys” of your Cryptocurrency address and no one can take them away. Definitely the risk to lose it is sill there as this may happen if the digital wallet service provider loses it or lose it yourself.

Cryptocurrecnies have a lot of advantages that drive more people to use them.

Definitely, Cryptocurrencies have also bad things and disadvantages like technical failures that may cost to lose them, still few business are currently accepting them and the lack of education for people to understand the Cryptocurrency and how to use them.

The future of Cryptocurrency? Will Cryptocurrencies become like paper money someday or all these virtual currencies are just a trend that they will flame out before long?

The answer is difficult and depends on many factors like if governments will find way to tax them or a strict regulation will drive people stop use them at all.

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