Cryptocurrency has enjoyed growing popularity throughout the globe, over the last couple of years. So, what exactly is cryptocurrency? In simple terms, cryptocurrency refers to the digital currency that is stored e-wallets. All transactions involving cryptocurrencies are tracked and managed via blockchain technology. Since it’s inception, cryptocurrency has positively impacted the world in different ways. Here are some of the ways in which cryptocurrency is changing the world.
Fraud Reduction
Fraud is arguably one of the biggest challenges facing monetary transactions. Whether you are buying goods online or transferring funds to another person, there is always the risk of fraud when it comes to monetary transactions. But with cryptocurrencies, fraud issues are almost non-existent. All blockchain transactions are tracked in a secure ledger, which cannot be manipulated by anyone. As a result, you don’t have to worry about the details of your financial transactions falling into the wrong hands.
Seamless Transactions
In conventional business dealings, agents, brokers as well as legal representatives, can all add unnecessary expenses and complications, making a simple business deal to drag for months or even years. For instance, they have to agree on commissions, fees, and other conditions applicable to the deal. Cryptocurrency transactions, on the other hand, take place via a peer-to-peer network, thus eliminating the middleman. As a result, the transaction will not only be cheaper, but it will also take a shorter period to complete.
Low Transaction Cost
Most transactions involving credit cards or debit cards usually involve some fees. Whether you are using your credit card to shop or you are paying your workers directly from your bank account, you will incur some fees for the transactions to be completed. And these transaction fees can add up quite fast, especially if you perform several transactions in a month. But with cryptocurrencies, the data miners that process those networks, usually receive their fees from the network. Therefore, as much as fees may apply in some situations, you will not incur as much as you would when using credit cards, debit cards, or doing bank transfers.
Greater Banking Opportunities
According to a survey conducted by the World Bank, approximately 31% of adults in the world are unbanked. This means that they don’t have access to basic financing options such as NowLoans, which can help them when they encounter a personal financial crisis. And when these people lack access to secure banking services, some of them resort to shylocks, among other dangerous lending practices. And as you may probably know, the interest rates of such service providers are astronomically high, thus leading to further financial problems. And this is where the power of cryptocurrencies comes in. As long as you have internet connectivity, you can now access crypto-backed loans from the thousands of companies offering such services.
Closing Remarks
Without a doubt, cryptocurrencies have significantly positively changed the world. Besides making it easy for individuals and businesses to conduct transactions across the world, cryptocurrencies have also opened up greater banking opportunities, especially for people who didn’t have access to credit facilities.
