Cryptocurrency has gained a lot of buzz in recent times, although there is still a lot to learn about this evolving technology. The technology is said to have powerful applications in a variety of fields, from healthcare to the media.
Did you know? According to a recent survey, the global cryptocurrency market size was $754.0 million in 2019, and is estimated to reach USD 1,758.0 million by 2027.
The purpose of cryptocurrencies was to eliminate financial intermediaries by direct peer-to-peer transactions. As a result, most countries such as the US, China, and the UK have started adopting cryptocurrencies as a medium of exchange.
But, many concerns are swirling around this technology and its potential to disrupt traditional financial systems. Therefore, through this article, I will discuss the future of cryptocurrency, its appeal, and why a purely digital currency can have value.
Here we go…
What Is Cryptocurrency And Why Use It?
Cryptocurrency is a digital asset that makes use of cryptography, an encryption technology for security. Cryptocurrencies are majorly used to buy and sell goods and services. There are also some new cryptocurrencies that offer a set of rules or obligations to their holders.
They have no intrinsic value, and they aren’t redeemable for other commodities, like gold. Unlike conventional currency, the central authority does not issue cryptocurrency, and it is not considered legal tender.
At this point, the use of cryptocurrencies is largely limited to “early adopters.” Over the past five years, bitcoin users and transactions have achieved an average growth rate of around 60% per year.
We can draw observations on the impact of cryptocurrencies all across the globe, and draw logical predictions on the basis of what the likes of Bitcoin have taught us till now.
For most adopters, the perks of cryptocurrencies are theoretical. Therefore, mainstream adoption will only happen if there is a significant tangible benefit of using cryptocurrencies. So, what are the benefits of using them?
Cryptocurrency: Redefining the Future of Finance
Cryptocurrencies will play their part in rendering paper currency and billing obsolete in the coming years.
While that prediction is far from bold, after all, it’s a safe bet that you’re currently carrying far less physical cash in your wallet than you were five years ago. But, widespread adoption of crypto-based payment solutions is certainly noteworthy.
The crypto-investment organization, CoinBundle, explains that digital coins could soon form a rival to current popular transaction methods, such as Apple Pay and Samsung Pay.
Using this technology of the time, users can set up transactions through a dedicated app – Cryptopay – which can be accessed via a biometric scan on your smartphone or through an intelligent contact lens placed on your eye.
With the help of your smart contact lense, you can skip the tired old payment methods of 2019 and transact securely in the blink of an eye with “a specific number – for you to decide – to execute the payment.”
Now, let’s quickly jump over the parameters that will lead us to how cryptocurrencies are changing the Future of Finance? Let’s have a look at them:
#1 Eliminates Financial Intermediaries
One of the major perks of using cryptocurrency is that it does not involve the intermediaries of the financial institution. For merchants, the reduction of “middlemen” reduces transaction costs.
This is a tremendous advantage for consumers if the financial system is hacked or users do not trust the traditional approach. For comparison, if a bank’s database were hacked or damaged, the bank would rely solely on its backup to restore any missing information.
With cryptocurrency, even if a portion is compromised, the remaining amount will continue to confirm transactions.
#2 Mobile wallets
A mobile wallet is one of the significant advantages offered by cryptocurrency, and this wallet is known as a crypto wallet. To learn about these wallets, I would like to remind you about services like PayPal, Android Pay, and Apple Pay, which are financed by both credit and debit cards.
But, if you are dealing with Blockchain, then you can use a cryptocurrency wallet. Another benefit of cryptocurrency wallets is that they do not need to be linked to another account, which adds to their ease of use compared to these card-funded wallets.
A crypto wallet is one of the cheapest, fastest, and easiest ways to use your currency. You can efficiently manage and store your bitcoins in the mobile wallet provided by this crypto payment.
Big companies, such as Cryptopay, incorporate banking through Bitcoin on a global level of commerce. You can opt to hire blockchain developers if you want to include cryptocurrency as a method of transaction.
#3 Cross-Border Transactions
One of the leading advantages of cryptocurrency is cross-border transactions. Since the Blockchain is managing this cryptocurrency, it is capable of real-time virtual transactions.
The process is quite simple and faster than traditional transactions, and it is done through clearinghouses and various payment processes. No transaction can be faster than this because the blockchain transfer takes place within the system.
Since the blockchain has a decentralized structure, it is straightforward to maintain, and in addition, users can reduce the investment in the business.
This process benefits users well as users can send their money back home using the blockchain method, and it is more economical than Western Union.
Buying goods and services with cryptocurrencies occurs online and does not require disclosure of identity. However, there is a common misconception about cryptocurrencies that they guarantee entirely anonymous transactions.
What they offer is a pseudonym, which is a near-unknown state. They allow consumers to complete purchases without having to provide personal information to merchants.
However, from a law enforcement perspective, transactions can be traced back to an individual or entity. Nevertheless, cryptocurrencies may offer benefits to users amid growing concerns about identity theft and privacy.
Possessing material wealth is more likely to be lost or stolen. So, if you are cashless and dealing with digital payments, then you are safer and more secure.
Even if you have lost your mobile, there is no need to worry as your money and funds are safe in your mobile wallet and protected with multiple layers of security.
You can get security in the app as well as on the phone, so that the money remains intact in the cloud. There are some issues concerning data breaches, but still, the security can keep your data away from cybercriminals. As a bitcoin user, you are not allowed to reveal your true identity to send bitcoins.
With the help of this blockchain technology, you can easily trace all the transactions; as you all know, security is always a significant concern regarding money and finances. And, blockchain is managing this digital process of finance and payments, which can quickly build your trust to go for it.
#6 Smart Capabilities
Some cryptocurrencies may offer other benefits to their holders, including limited ownership and voting rights. For example, a cryptocurrency-funded organization may incorporate voting rights into the software code of a currency.
Cryptocurrencies can also include a partial ownership interest in physical assets, such as art or real estate.
Should You Invest in Bitcoins?
Investing in bitcoins is better as it is a faster way for various transactions as well as a non-fee payment method. And, another great part of using bitcoins is that it can be a good alternative to gold and fiat money from the government.
You can’t find the credibility and long-term track history of bitcoin anywhere. It was not developed for typical equity investment, and investors are also attracted to it. Even though you may incur some risk, it is better than national fiat funds.
Do the above pointers make you aware of the fact of how cryptocurrencies are changing the future of finance? A cryptocurrency that wants to be part of the mainstream financial system must meet different criteria.
We can say that the idea of cryptocurrency applications created by blockchain technology is driving a lot, and will undoubtedly revolutionize the future of our payments.
If you are one of those who aspire to invest in cryptocurrency, then you can consult the best cryptocurrency development company, which can make you fully aware of the process and the benefits of cryptocurrency applications.
If you have any questions or suggestions, then do share them in the comment section below.