Cryptocurrency refers to the digital currency that is typically managed and created by using the advanced encryption method referred to as cryptography. The reality of cryptocurrency was made real in 2009. Currently, the Bitcoin is the face of cryptocurrency; this follows its rapid in value in 2017. Other than Bitcoin, we have other forms of cryptocurrencies. The cryptosaver gives you a great insight on cryptocurrency. Let us look at some of the advantages of cryptocurrencies.
Cryptocurrencies like Bitcoin are decentralized currencies that make use of the peer-to-peer technology. This means that all the functions of the currency like verification, processing of transactions, and issuance of money by the network. This decentralization is what makes cryptocurrencies free from government control, and that is why many governments discourage its citizens from participating in cryptocurrencies. The Bitcoins, for instance, are created digitally through a method called mining whereby computers crunch numbers and solve complex algorithms.
Another advantage of cryptocurrency is that there is an immediate settlement. When we transact in the real world, the process is usually complicated as it involves the payment of fees, delay, that is usually because of third parties like notary and lawyers. However, the cryptocurrency contracts when enforced eliminates the third-party delays which make the transactions fast.
Many individuals have complained in the past while doing the physical transactions. This is because many have been conned either by being given fake cover or by the buyers failing to remit the agreed cash. This is however not the case when we go to cryptocurrencies since we have buyer protections. Since cryptocurrencies are digital, they cannot be reversed or counterfeited arbitrarily by the buyer like it is typically the case with the credit card chargebacks.
Lower transactions fees
The transaction fees are lower when we are dealing with cryptocurrencies since the miners are usually compensated by the network. There are no cryptocurrency transaction costs, but the users will eventually use the third-party service like the Coinbase when running their wallets. The cost that they will spend on this is quite low when compared to the physical transactions.
Everyone regardless of his geographical location can own a bitcoin. With over three billion individuals who have access to the internet, they can turn attention to cryptocurrencies and make a few earnings here and there. Counties that have been sidelined when it comes to other forms of payments like Sudan are free to use the cryptocurrencies. The government interference has been eliminated which makes it enjoyable to trade using this type of cryptocurrency. Watch the benefits on cryptocurrencies on the video below;