Cryptocurrency has emerged as a viable alternative to standard fiat currency. There are now many places where Bitcoin is accepted, including both brick and mortar stores as well as online stores. Cryptocurrency offers a series of unique benefits that you don’t get with conventional fiat currency, thus making it a viable choice for use. As it is being adopted and rolled out by more and more businesses, it is important to understand that cryptocurrency is going to play a big role in transactions in the future. If you did buy Bitcoin when it was low, you probably ended up making millions. If you didn’t, it’s easy to say that you missed out on a substantial investment that could have turned your life upside down. To illustrate this point, here are eight benefits that you get for using cryptocurrency as a financial medium.
- Smoother Transactions
In a traditional business dealing, there are multiple parties involved, which not only increases the costs, but also makes standard business deals much more complicated. Brokers, legal representatives, and even agents can convolute an otherwise straightforward deal.
One of the biggest advantages of a standard crypto deal is that it is a one-on-one affair. The transaction occurs on a peer-to-peer networking structure, removing the middleman altogether. Ultimately, this creates much greater clarity when it comes to establishing an audit trail and also creates much less confusion about who gets paid what.
- Transferring Assets
Think of a crypto blockchain as a database of property rights that you can use to create and execute two-party contracts on common commodities such as real estate or even cars. However, because of the nature of the blockchain, it can only be used for specialist modes of transfer.
For instance, you can create a crypto contract that can only be enforced with a third-party approval. You can also make a reference to any other external facts. The best part is that you are the executive enforcer of the contract, so you don’t have to worry about someone else handling matters.
- Transactions Are Completely Confidential
Under the conventional cash and credit systems, every transaction can be traced back to you through an extensive database. But, when you make transactions via the blockchain, you should know that there is considerable privacy. With cryptocurrency transactions, the biggest benefit is that each transaction is unique.
For every transaction, the terms need to be negotiated separately. More importantly, you have to tell the recipient exactly what you are going to send, and nothing apart from that. So, because each transaction is completely unique, they are also absolutely confidential.
- Transaction Charges and Fees
A considerable amount of fee is charged by banks and other credit processors for writing checks, using credit cards. If you take a look at your account statements at the end of the month, the amount charged is going to come as a surprise. It’s evident that transactions are going to take a sizeable bite out of your assets.
For people who carry out regular transactions, this can be a sizeable problem. However, if you are using the blockchain for your transactions, you don’t have much to worry about. You should know that if you hire a third-party management service to manage your wallet, they might charge you a fee for their services.
- More Access to Credit
There are a number of different companies that offer digital data transfer services and credit facilities to their clients. Basically, if you have access to the internet and a stable connection, along with access to crypto services, you can easily apply for credit as well.
Currently, there are around 2.2 billion individuals who have access to the internet, but currently don’t have any bank accounts or access to an exchange. This could prove to be a major blessing for people who need access to credit without going to a bank.
- Makes International Trade So Much Easier
With the passage of time, more and more countries are exploring cryptocurrency options for their international trade. If you want to buy Bitcoin, you can easily do so through any crypto exchange. Another excellent thing that you should know about using cryptocurrency is that it streamlines international trade considerably, because the value of cryptocurrency is not affected due to movements in the market.
For instance, using peer-to-peer blockchains streamlines operations considerably because corporations or governments don’t have to worry about any complications related to crypto exchange fluctuations. This makes international trade so much easier and also streamlines operations by a long margin.
- Robust Security
Security is one of the most important things that you need to consider when choosing any financial medium. When you use a conventional credit system, you should know that there is a risk that a chargeback can be filed against your account. With transactions that are carried out using cryptocurrency, you don’t have to worry about any reversals.
Because all the details of the transaction are confirmed beforehand, you should know that it is considerably secure and reliable. More importantly, you don’t have to worry about any chargebacks being filed once the transaction has been carried out. Each unique transaction is identified with its own TrX ID, and that’s about it. You don’t have to worry about any problems related to security.
- Adaptable and Scalable
Another major reason why you should consider using cryptocurrency as a financial medium is because it is incredibly adaptable. Currently, there are more than 1,200 cryptocurrencies that are being circulated around the globe. There are several currencies that have been created primarily for use in specific cases. This just highlights the considerable amount of flexibility available for cryptocurrency usage.
There are coins available for a number of different reasons, and depending on the type of transaction you want to carry out, there is probably a coin available for that, or you can launch your own as well after considerable research.