Cryptocurrency is currently the most talked about currency across the world. The reason for this is not farfetched. Before the introduction of cryptocurrency, fiat based currencies were dominating the market scene; however, currently, cryptocurrency has topped the list of viable payment methods. As a potential investor, you may not really understand the workings of cryptocurrency, which is why this article will take you through 10 ways this currency has affected the world positively.
Without further ado, let’s get to know the meaning of cryptocurrency. Generally, cryptocurrency is an electronic currency that can be used as a medium of exchange and can also be stored in an electronic wallet. Having said that, there are several types of cryptocurrencies, one of such is Bitcoin.
Cryptocurrency has revolutionized the manner we do business, store money, and pay for services. The following 10 ways will further highlight how cryptocurrency has impacted the world positively;
- Reduce the risk of Fraud
When it comes to money, fraud is an issue that gives law enforcement agencies sleepless night. Whether you are sending money to a family member or using your credit/debit cards, these processes are prone to fraud. Cryptocurrency makes use of the blockchain technology to record all transactions and does not operate with banks. Since the inception of cryptocurrency, the issue of fraud has abated.
- Increase crowdfunding
Crowdfunding is currently becoming a viable way for an entrepreneur to raise funds from members of the public. Cryptocurrency has impacted crowdfunding in several ways, one of which is the initial coin offerings deployed by startup companies to raise capital.
- Change the money transfer process
Despite the fact that bank transfers are swift, however, international wires and bank transfer can delay up to a week to clear. But with cryptocurrency, all the checks and processes involved in a bank transfer are eliminated.
- Makes E-commerce stronger
Nowadays, people buy goods and services online, instead of driving down to a store to buy items. It is a lot more convenient to buy things online, especially during holidays. Cryptocurrency reduces risk associated with online shopping, and it also opens a lot of opportunities for international businesses, since it is the most widely accepted payment method.
- Encourage scientific advancements
In the last 50 years, a lot of scientific advancement has been made. However, some institutions of government have formed the culture of concealing critical information and data, thereby creating a cog in the wheel of progress. Cryptocurrency with the aid of blockchain can advance the course of progress by eliminating governmental bureaucracies to provide real-time information to members of the public.
- Keep individuals and companies accountable
So many companies are not honest in their business dealings because they can unilaterally manipulate fiat-based currency. However, cryptocurrency would force them to be accountable because it is not possible to manipulate blockchain. What this means is that any company that adopts cryptocurrency would be held accountable.
- Makes internationals transfer safely
Cryptocurrency can also make an international money transfer safer aside from reducing the issue of fraud. International or local cryptocurrency transfers are instant, and fees are not charged.
- Offers a stable alternative to unstable currencies
The level of inflation caused by fiat-based currencies in some countries is alarming. Since cryptocurrency is accepted worldwide and devoid of interest rates, inflation cannot affect it. Cryptocurrency would also stabilize the economy of any country that has accepted it.
- Gives people control over their money
So many people hate bank hassles, but since they cannot keep all their money at home, they have no option than to patronize banks still. Any strain on the economy would give people a sleepless night. However, cryptocurrency grants you control of your money. It is not bound by the numerous laws and regulations by government.
- Offer Scalability
Despite all the platforms built by companies to showcase their goods and service, the issue of scalability has not been resolved. However, with cryptocurrency, the issue of scalability is now a thing of the past.