To discuss Cryptocurrency we need to know what it actually is. Cryptocurrency is a digital currency that works as a medium of transaction through a computer network that is not connected to any central authority like government or bank to maintain it. There are several international journals and articles that talk about crypto and its benefits in modern times. Let us know how Cryptocurrency works and how it is beneficial to use in 2023:
- Transaction speed
When it comes to sending money from one account to another, using Cryptocurrency is one of the fastest ways.Transactions take 3-4 days to be processed in the US financial institutions and stock trades are settled in 3 days. On the other hand, Cryptocurrency can complete transactions in minutes. Once a block containing a transaction is confirmed by the network, it is fully settled and the funds are available.
- Expense of transaction
Transaction in Cryptocurrency is way cheaper than other transacting mediums. For instance, domestic wire transfer can cost $25-$30 and that is not unusual. It can be even more costly if money is sent internationally. So, using cryptocurrency is very affordable. However, it shouldn’t be overlooked that the demand on blockchains may enhance transaction cost. Still, median transaction fees are cheaper than wire transfer even if the blockchains are highly crowded.
- Accessibility
Cryptocurrency can be availed by anyone. It has just some basic requirements: a computer or a smartphone along with internet connection. All you have to do is to set up a cryptocurrency wallet which is easier than opening an account at any traditional financial organization as there is no need to verify your ID, background or credit.Cryptocurrency, thus, offers a way to access banking services for the ones who are incapable or reluctant to go through a centralized authority to get an account.To conclude, cryptocurrency enables the unbanked to make easy online transactions.
- Privacy
Maintaining a level of privacy in financial transactions is a tough thing to do but Cryptocurrency has made it easier as here you don’t have to register for an account at financial institutions. All the transactions will be pseudonymous. You will have an identifier on your wallet address but it can not be tracked back to you because it will not include any specific information about you. There are many other ways to secure transaction details even further because privacy is desirable in many fields. There are several coins that are privacy-focused and help you keep all your transaction details private.
- Transparency:
Cryptocurrency is capable of offering transparency too. All crypto transactions take place on the publicly distributed blockchain ledger. Anyone can see not just transaction data but the time, place and how much crypto someone has sent from a particular wallet address.This level of transparency can positively reduce fraud and illegal activities. It helps people prove that they have sent, received transactions.
Apart from these, there are many ways in which crypto can help us. It might be a bit difficult to understand as we are still new to this and trusting something that deals with finance is a huge thing still we have to sync ourselves with the modern world and cryptocurrency is a part of that. It has begun a new era and we will have to adjust today or tomorrow, for our own benefits.
