Cryptocurrency won a boom in the beginning when it started trading, and in the taillight, bitcoin became the unbeatable leader in the market. But then again BOOM even the Ethereum, Ripple got popular in the capitalized market
Fret not; Bitcoin is still the unquestionable leader in the market of crypto. Still, the significant change has led many to debate whether cryptocurrencies could be on par with real currency? So let’s analyze in this article how Cryptocurrency can be used as money? Can Cryptocurrency Exchange Software lead a successful change in the crypto world?
What is Cryptocurrency? Is it Legit?
A cryptocurrency is a form of medium of exchange that works in the digital format. Simply put, it’s a digital currency or virtual currency to be more precise. It majorly uses cryptography technology and blockchain technology for its functional dimensions and helps in formulating the value of crypto, and it’s ownership.
From the recent past, digital currency is gaining rapid leads generating more users with profitable investments. While some countries vehemently ban the usage of Cryptocurrencies like China and Bolivia, other countries accept it as the medium of exchange under a certain law, of course.
So, yes, it’s legit as there is no fear of identity theft as all the funds will be safely snared in digital wallets. That’s what cryptocurrency wallet development softwares makes sure to implement.
Can Cryptocurrency Replace Cash?
Cryptocurrency has the giant potential to replace cash as per the research done by the Deutsche bank claiming that the present currency system, which is regulated and issued by the government, looks too fragile because of the low labor costs with inflation.
Also, with an added bonus of its efficiency, low fees, security, speed, it has made quite a mark on the digital era. People seem to fall head over heels for the privacy it offers, which is quite rare in the 21st century. There is no reason to panic about the higher authorities or a leading financial institution taking it over or controlling it, simply there are no hurdles to fear apart from the gamblers and speculators who might take advantage. You can even create cryptocurrency if you wish.
Top 6 Reasons to Use Cryptocurrency Instead of Cash
Let’s explore the reasons that you need to discover to use crypto instead of cash, here we go-
Bank the Unbanked
As people are getting accustomed to living in industrialized society, we are forgetting that there are still people out there who have difficulty in accessing bank accounts or have a bank account in the first place!
So, bitcoin is like a boon for those people who don’t have the efficient resource of having a bank account. With cryptocurrency, they can enjoy a service that is equal to banking service. Cryptocurrency exchange software has made it easier for building more software and the process to be ready-made.
Cryptocurrencies enjoy a mighty level of decentralization which is a great advantage as no authority can question the transaction whatsoever. Cash is always controlled by the central banks and sometimes they might restrict the transaction to get out of their country.
Duplication is not possible
The concept of blockchain is deeply embedded with cryptocurrencies like bitcoin. So, when a blockchain is considered a public ledger, which also records of the transaction with the details from top to bottom with new visibility to the public. Fraud can’t play dirty or double spend.
Payments are Anonymous
The usual online payment which you might pay with debit or credit cards is not confidential at all. Hackers and cheaters might use vulnerable information to their advantage. But the payments that happen through blockchain are anonymous. No one can know unless you want the information to be released.
There is no need for an intermediary as well. It’s immutable. The transaction cannot be reversed once it’s validated by the parties involved.
Bitcoin uses the P2P currency on the basis of blockchain. Hence it has the benefit of allowing people to transact without the addition of a third party.
Bitcoin has quite a high volatility rate in the cryptocurrency market. There is a reason for those people who bought crypto in 2013 who are millionaires now. You can buy bitcoins and invest them expecting high capital gains.
How Does Cryptocurrency differ from the regular currency?
The major difference between cryptocurrency and regular currency is, you are the only person who is safe and responsible for your transaction, unlike the banks and authorities who claim responsibility for the cash transaction.
When you compare fiat currencies, bitcoins keep gaining value over time without losing its value with the fluctuations of the economy. Banks and authorities can devalue cash with their methods of printing more and more, but the same thing is not true for the cryptocurrencies.
The Bottom Line
Now, the cryptocurrency economy is worth more than 100 billion dollars to date. It is also inspiring the young entrepreneurs and businesses to operate digitally, and more of them are thrilled by testing it as well. Many rich countries are even dissecting the possibilities of adopting Cryptocurrency as it’s legal tender. Yes, you heard me right. Currently, countries like Japan, the European Union, and Holland are conducting in-depth research regarding this area.
Since 2009 it is gaining more momentum in the way of digitally transforming the financial services of the future. It’s an excellent benefit for the countries that have a weakened currency to adopt crypto as their tender to come up in the economy.