The Revolution of Cryptocurrency
The financial sector is still trying to adapt to the sudden influence of the evolving revolution that is known as cryptocurrency. In just a few years of its existence, the growing use of digital currency is starting to have its effects felt in the banking world, and big businesses are scrambling to get up to […]
The financial sector is still trying to adapt to the sudden influence of the evolving revolution that is known as cryptocurrency. In just a few years of its existence, the growing use of digital currency is starting to have its effects felt in the banking world, and big businesses are scrambling to get up to date on the best ways to use what is fast becoming a revolutionary new way of spending money and making safe payments across the planet. While the technology used to be the sole preserve of the tech industry, cryptocurrency is fast becoming mainstream, with more people recognizing the benefits that it offers. With high profile stories of the potential profits increasingly in the news, more and more people are seriously looking at cryptocurrency and wondering how they can make the most of the benefits.
The rise of digital currency
As the name suggests, cryptocurrency uses no hard copy, meaning that there are no paper notes or metal coins to stuff into your pockets. While many fear the lack of legal regulation when it comes to using the wide variety of digital currencies available, the truth is that by taking away the necessity for banking institutes, a certain freedom and control is granted. One of the driving demographics behind the rise of cryptocurrency is the younger market, who have grown up online and think little of making online purchases. Digital currency enables them to make safe and secure payments anywhere in the world, and that’s the key element of cryptocurrencies and the major reason why the larger companies are looking at ways to make the best use of it.
The challenges of cryptocurrency
There are a number of concerns when it comes to digital currency. The first is that it is the first real currency that is not geographical in nature. This means that unlike the British Pound or the US Dollar, there is no government backing or guarantee of stability for Bitcoin, Ethereum, Litecoin, or any of the wide range of digital options you choose. Due to the anonymity that digital currency offers, this means that users are unprotected by legislation, although some countries are speeding up their response to the challenges. There have been cases of hackers wiping out large quantities of digital money, and without the insurance offered by traditional banks, that money is gone forever. However, with countries like China and Sweden looking at ways to regulate its use without prohibition, this is likely to change in the near future.
The major advantages
The reason that more and more people are using cryptocurrency is that it offers a number of key advantages over traditional banking. One of the major benefits of digital currency is that it can’t be forged or counterfeited, and as well as that, once a payment is made it cannot be undone. This transaction protection protects both buyers and sellers. A further benefit is the lack of transaction fees, although more users are taking advantage of the wallets designed specifically for crypto currencies that do charge a fee in the same way that more prolific platforms such as PayPal offer. This element of financial control extends even further, with cryptocurrency users not only able to maintain their privacy, but also taking advantage of the fact they can own every stage of the transaction process. This means that their accounts are owned wholly by themselves, giving them a level of control and management that is impossible with your standard business bank account.