Why are people crazy about the cryptocurrency revolution?
The traditional financial system has been facing flaws that have been around for years now. Various measures and technological advancements were put in place to deal with the loopholes. After everything and all these years, the system is still flawed to some extent. But with cryptocurrency, today many of the existing problems have found a potential solution. There are some distinct advantages to a currency system like this.
5 out of those are mentioned below
1. Decentralised
This simply means that while every transaction of a given cryptocurrency is all recorded on the same ledger, there are many copies of that ledger. And anyone who is a part of that network has one. This technology is nothing but blockchain – the technology on which cryptocurrency runs. You must have heard of crypto mining. A miner is someone who sets up a computer to crunch through transactions on their copy of this ledger. There are millions of miners around the world. If we end up having millions of copies of the same ledger, it becomes easy to tell if anyone’s trying anything fishy. So, decentralisation brings safety.
2. Security
If someone tries to hack into a blockchain and give themselves more money by adjusting figures on their copy of the ledger, it won’t go through. The system realizes that 99.9% of copies on the ledger are saying one thing but one of them is saying something else. There’s a very clear organization to the system and people believe in it because they see the future as open traceable transactions. It seems complex on a conceptual level, but so did the internet in its early days and see, today everyone is on it. Its all about security.
3. Elimination of intermediaries
The main perk of crypto is that you won’t need banks anymore. Because everything is stored by people on this ledger, you can make international payments almost instantly instead of taking half a day with no spending limits. Here you don’t need to worry about exchange rates, interest rates and even transaction fees are close to zero for some cryptocurrencies today.
4. No government interference
With the elimination of banks, the governments cannot monitor and regulate people on the financial front. This gives people the total privacy they need with their money. This also means the taxes we pay to the government would come down decently.
The cryptocurrency prices are dictated by the free market and no government can touch it. With traditional money, governments have lots of options for manipulating its value. Inflation, rise in interest rates have ripple effects for the rest of the economy. In crypto market, none of this is set by governments.
5. Disrupting markets at an early stage
Cryptocurrencies are at an early stage and are already disrupting markets since bitcoin was created in 2009. Meaning crypto is already over 10 years old but now is the time it is taking off. The growth that we’ll be witnessing in the next decade is going to be a whole load more exciting than what we’ve seen up till now. In fact, the number of people who have adopted cryptocurrencies looks alike to the adoption of the internet back in the 90s.
Cryptocurrencies are going to be on a rise in a spectacular way and just like the internet disrupted literally everything on the planet, blockchain and cryptocurrencies are going to do the same in the coming decades. Cryptocurrency trading is trending today just to stay forever.