Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
In the age of digital, cryptocurrency has soared to the top, actively used by many in the same way as any other currency. Compared to traditional money, cryptocurrency does differ in certain ways, with many individuals still holding a certain level of scepticism when it comes to legitimacy. As crypto continues to evolve and progress, it’s clear to see there are many benefits attached to it. So, what are the benefits of crypto?
Inflation Protection
With traditional currencies, inflation has a massive impact, causing surges and declinations over time. Although cryptocurrency values begin at a standardised amount, over time, and as demand increases, the value of cryptocurrencies increase, which may well maintain within the market, inevitably preventing inflation.
Privately Managed Currency
Rather than abiding by the rules of a governance and maintenance, crypto transactions are stored by crypto developers or bitcoin miners, meaning the transaction fee is sent directly to them. As these individuals have acquired it themselves, they are able to ensure that transaction records and accurately recorded, meaning that cryptocurrency is decentralised, which brings us to our next benefit.
A Decentralised form of Currency
It’s fair to say that one of biggest advantages of cryptocurrency is that fact that it is mainly decentralised. A large proportion of cryptocurrencies are managed and controlled by the developers using it, individuals with a significant amount of coin and corporations who develop it before the rest of the market has access. This means that cryptocurrency is free in the sense that no one institution or organisation can determine the flow of it. If the flow can’t be determined, this decentralised approach helps also means the worth of the coin cannot be estimated accurately. This allows for a form of currency that is stable, secure, and out of the control of government influence.
Cost Effectiveness
Transaction fees for international payments and money transfers is one of the biggest barriers of using traditional money. Sending money across borders with cryptocurrency involves negligible transaction fees, often amounting to nothing. In addition to this, cryptocurrency can be bought using most currencies, from any country. This allows for the conversion of one currency into another through crypto trading, with minimal transaction fees, if any.
Security and Privacy
Cryptocurrencies are far superior in terms of security & privacy. Rather than having to use your given name, you are able to use pseudonyms, completely detaching your personal identity from the account in which you store your cryptocurrency of your choosing. The blockchain ledger in which crypto resides is reliant on a series algorithms, which are incredibly difficult to decode. Whether you are using Bitcoin, Ethereum, Floki, or Doge Coin, you can buy and spend Bitcoin safely, with the knowledge that you are doing so in a safe, secure, private environment.
Easily Transferable Funds
Crypto is the ideal form of monetary transaction. Whether it’s international transactions or transferring digital currency domestically, the process is faster than any other form of currency transfer, with a minimal number of barriers to cross and a unrivalled verification process in terms of speed.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.