Exchange of things has all been there even in caveman era. They relied upon barter system but then it fell out of use as it lacks any common value to measure. Then goods were difficult to be transported because of their size. This created a need of formulating a currency system which then passed through various stages with the passage of time according to the specific iterations of that particular era. All this transition brought it to the development of modern currency such as digital wallets, and credit cards etc. Cryptocurrency is such a digital currency now is being used for exchange without its own physical embodiment.
FIVE BENEFITS OF INVESTING IN CRYPTOCURRENCTY:
Below are some of the benefits of investing in cryptocurrencies.
- LACK OF TECHNICAL ISSUES:
Exchange through financial institutions could meet some technical fault lines like machine not working, hacking and transfer limit reached. This is not the problem with using cryptocurrency in transactions. Both persons using bitcoin app gets a notification asking whether they are sure to transfer bitcoins. At their acknowledgement further processing takes place. All this happens within minutes. So there is no as such a central point of failure in using cryptocurrency.
People with no bank account can also benefit from using cryptocurrency. They can buy it at an ATM in lieu of cash and transfer these coins to their phones. All that is needed is a smartphone.
- IT ENSURES SECURITY:
Cryptocurrencies use cryptography which is a method of encryption and decryption to protect communication from ill intent of any other party.as hundreds of cryptocurrencies available now such as Bitcoins, Litecoin, and Zcash etc.
Let’s take bitcoin which uses its computational algorithms; a public key which holds digital identity of users but it is known to everyone. On the other hand private key holds digital signature of the user and is kept hidden. In transaction all the information is passed through a hashing algorithm. It then is passed on to signature algorithm. This step identifies the specific user with specific private key. Users, in this way, can check whether the validity of transactions. When all the initial steps are met transaction is then added to the blockchain. Details once saved in blockchain cannot be changed. This complexity of steps mentioned above makes it extremely difficult for those holding ill intent to hold back their hands from identity theft or other frauds.
- BUFFER ZONE FROM INFLATION:
Supply cap for cryptocurrencies are limited which creates an opportunity for this arena of investment a buffer zone from inflation. It is a widely accepted phenomenon that monetary inflation does exist as per the policies of the government and financial institutions like banking etc.
When banks print more money, supply of money increases. But the thing is that the things which are already scarce tends to go up in demand. In this case when more and more dollars would be available for chasing fewer coins the value for dollars would go down while these fixed-supply coins would go up. Interestingly the cryptocurrency protocol let’s suppose bitcoin is designed in such a way as to keep these coins in limited quantity. So monetary policy doesn’t affect the cryptocurrency as such which is the biggest concern for investors before investing anywhere.
- A BORDERLESS INTERACTION:
Another benefit of making investment in cryptocurrencies is that one individual can send coins to another without facing any difficulty. Prior to this, traditional system of exchange used to take long time. Time itself is money and then fee for all these services used to be sky high. Moreover if two stated had any tensions between them regarding rules and regulations concerning sanctions it might would have been impossible.
Cryptocurrencies has created a space where people don’t need any permission from third party or other financial officials this endows eligibility to all and sundry so that they can go after investing in cryptocurrency. Third party involvement often ensues censorship resistance. This is so because of the regime policies regarding any particular state. Nonetheless persons aspiring to for investment in cryptocurrencies related businesses have to face less to no hindrance in carrying out their businesses with various demographic groups all over the world around.
- FREE OF TIME LIMITS:
Other businesses like investing in stock exchange follow proper schedule of work. They close mostly at night, at weekends, holidays and other occasions. While cryptocurrency markets work all through the week and that too 24\7 with no exceptions. If there is anything that could take a person from out of his business operating space is either the power shortage or internet fluctuations. Anything else is no limitation to value reaching out to their clientele.
- Moreover real-time transfer of programmable money is a new avenue to fasten control over the capital of the business.
- Though digital investments offers both opportunities and risks to its investors yet cryptocurrencies strive their best to minimize these risks to its investors.
- Now that crypto is getting popularity with each passing second so most of the vendors and clients want to resort to this exchange system to ensure smooth exchange of money among various stakeholders.
- The use of cryptocurrencies in businesses is creating internal awareness among its users. It sets the ground tamed for future progress as it almost seems to be the future of businesses owing to the progress it holds.
- Digital currencies are an emerging space inevitable in near future. Moreover it is decentralized, cost effective and easy to manage once one gets a grip upon it so is easily accessible to its new users.
- It ensures diversification to its new users. Diversification allows investors to avoid risk factors in their portfolio.
If one starts counting the benefits of investing in cryptocurrency it would be hard to enclose it in a nutshell as it is becoming the need of hour to invest in it to, ensure progress.