As we have been seeing this world transforming digitally specially for last few decades and there are many things from internet to social networking which completely transformed into something different and it has all been of great benefits as it reduced the time and effort to do different things. Cryptocurrency is yet another transformation which is likely to take the financial world by storm.
It is a medium to exchange money which makes use of cryptography to make transactions more secure . There are some key benefits which back the idea that the world will be transformed better financially once it is implemented in its full capacity.
Better Fraud Management
Fraudulent imitation of physical money has been an issue for quite sometimes and in some countries it is more common then the other and since cryptocurrency is a digital currency so it cannot be imitated fraudulently nor can be reversed arbitrarily by the sender, as with credit card charge-backs .
Lower Transaction Charges
A lot of traditional money transfers will charge a fee based upon the amount being transferred. However in cryptocurrency such as Bitcoin, the fee is based on the size of the transaction data itself, not the amount transferred. This means that the fee for transfers of say $100,000 can be the same as the fee for sending $10. And those fees are usually in the order of $0.50 — $1.00. Furthermore, sending money internationally through a bank is usually more expensive than domestically. Transfers to an account at a different bank also costs more than transfers to accounts in the same bank. None of this matters in Bitcoin.
Shorter Settlement Time
It has a shorter settlement time. For Example purchasing real property usually involves a number of third parties like lawyers, notary, delays and payment of fees. This can be compared to bitcoin block chain, which is like a large property right database according to experts. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference external facts ,or be completed at a future date or time for a fraction of the expense and time required to complete traditional asset transfers.
Eliminates Identity Theft
cryptocurrency transactions do not usually contain customer sensitive information of a certain user and hence reduce the risk of identity theft which is quite vulnerable with credit cards as they use pull mechanism to fetch a certain amount from user’s account while cryptocurrency transactions use push mechanism to do the same job which reveals no further information about the user.
Decentralization
It is a peer to peer exchange of money and the most obvious benefit to using a decentralized exchange over a centralized one is you don’t have rely on third party as the funds are kept by you in your wallet not by them.
Freedom
cryptocurrency allows transactions within no time and at any time. Since it is decentralized so you don’t have to worry about bank holidays either . Even borders are not an issue . you are in full control of your money and there are no limits to make any transaction.
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