The public has grown increasingly interested in cryptocurrency over the past few years. Everyone is interested in digital currencies. Bitcoin is no longer a strange word. Even those who haven’t started benefiting from the market, have an idea of what it is. Cryptocurrencies are emerging as alternative modes of exchange compared to cash and credit cards.
What are the Advantages of Cryptocurrencies Over Fiat Money?
1. Cryptocurrency Offers More Security
After a cryptocurrency trade is authorized, it’s irreversible unlike in charge-back transactions permitted by credit card companies. It protects the user from the kind of fraud that may occur between a buyer and a seller. Thanks to the distributed ledger and implementation of smart contracts, people can exchange valuables across continents with the click of a button without any risk of fraud. Only authorized individuals will have access to transactions that are made on a blockchain network. This doesn’t mean hackers can’t hack a cryptocurrency wallet. However, there are many safety measures users can employ to protect their cryptocurrencies that may not be applicable with fiat money.
2. Cryptocurrency is More Accessible
Your traditional bank account can be frozen, but it is unlikely for your cryptocurrency account to be frozen as they are not bounded by most laws and regulations that give way for account freezing. Also, anyone with internet access can buy cryptocurrencies without the need for rigorous scrutiny by regulatory bodies. Those who do not have access to traditional means of exchange can get involved in the cryptocurrency industry.
3. Cryptocurrency Transactions Have Lower Transaction Fees
Processing transactions in traditional banks require processing fees just like on the cryptocurrency industry. However, the costs for cryptocurrency transactions are low and sometimes free for transactions that are exchangeable over the network.
Every technology comes with advantages and disadvantages, and cryptocurrency is not an exception. You need to weigh the benefits to know if they are worth the disadvantages. As advantageous as cryptocurrencies are, there are still many people, especially in developing nations, who have no idea what cryptocurrency is.