Cash or fiat currency is the predominant transaction mode after the barter and livestock system. Today, central banks manage, control and oversee the flow of money supply in respective countries. The value of fiat currency is determined with an increase or decrease of the stock market trading. Conventional monetary practices are disrupted with the inception of Cryptocurrency, popularly regarded as digital gold.
With the release of Bitcoin by Satoshi Nakamoto back in 2009, the world slowly learnt different avenues and benefits. Cryptocurrency like Bitcoin, Ethereum, Litecoin has over the conventional mode of transaction.
Decentralization is the future
The fundamental difference between Cryptocurrency and fiat currency is that the former is decentralized. Furthermore, this states there are no individuals or a group of individuals who have access to any cryptocurrency to control the money flow, inflation, and valuation. Decentralization powers a crypto miner, and trader the sole proprietor of the Crypto tokens and possessions. The best part? You do not have to pay taxes to the central government to exchange and use Cryptocurrency for daily transactions.
Whenever you’re making daily transactions with conventional currency, there are chances payments get stuck. In addition to this, sometimes, you’ll have to pay extra charges to send money from one country to another. So far, this is the reason why Cryptocurrency came into being. Cryptocurrencies are borderless, meaning a person living in the US can transfer 10 BTC to their parents in the UK without paying extra.
Cryptocurrency is consumer-centric. Meaning merchants using Ethereum or Bitcoin will not face cancellation from their banks due to unprecedented reasons. After getting validation, which usually takes a few seconds, funds’ can be transferred. On the other hand, people still don’t have access to conventional banking services, even in 2021. For the unbanked population, cryptocurrency could be the answer to storing funds and investing for maximum returns.
Like all markets, even the realm of Cryptocurrency is volatile. However, this doesn’t stop people from investing in Cryptocurrency. Given that volatility, Cryptocurrency can provide high capital gains over a short or an extended period. Cryptocurrency is still young, it is always evolving, and it has brought the next phase of economic evolution.
