These days, people are getting interested in cryptocurrencies. We hear lots of people talking about the money they have earned with cryptocurrencies. It’s getting more popular each day and getting in our lives. And needles to say, the usage of cryptocurrencies and blockchain technology had a peak usage this year. Even companies like Starbucks started accepting crypto as a payment method. But is it really an alternative to traditional money or credit/debit cards? Let’s have a look.
They both have their sides; but in my opinion, cryptocurrency has a lot more advantages according to cash. I composed 5 advantages of cryptocurrency. Here are the reasons I think cryptocurrency is a lot better.
1- Acknowledged Internationally
International dealings with regular money can come with a slew of fees and frustrations. Whether you’re transferring money internationally or converting into foreign currencies, for money, everyone seems to speak a distinct language. With the existence of cryptocurrency, the humanity discovered a unique idea to transfer money internationally. Since tokens and coins like Kala, Bitcoin, Ethereum and TRX have the same value across different countries, using digital currency allows users to travel, send money internationally, and make purchases with no conversion and extra fees.
2- Decentralization
Cryptocurrency is being stored in a decentralized format all over the web. This means that money is stored on blockchain technology, rather than a third party banking company. Blockchains are controlled and verified by the public. Not dealing with traditional banking means there are no extra fees, no need for wallets, and more. Instead of giving out your money to a private company to secure it, you have the authority to use the money however you want. Decentralized money is a lot safer than physical money, which we will see at the next bullet point.
3- Increased Security
I can already hear questions like: If my cryptocurrency is stored and verified out in the public, how could it possibly be more secure than using my credit card through a bank? To understand the safety principal of blockchain, we must know how banking and credit system works. In traditional credit system, you need to give out some information about your identity to access your money. Which means you got to hand out a bunch of information to a third-party company. This is called a “pull” system. However; in cryptocurrency, the blockchain technology uses a system called “push” system. Which means that you don’t have to give out any kind of information to anybody to access your savings. If I want to make a purchase as a cryptocurrency user, I can use my personal wallet ID to push my funds into the receiving account and keep my information private. You can also buy bitcoin with services like Papara, Ininal, Tosla, so you can have all your money in one place. You need to know that despite the money is public-sourced, all transactions are anonymous. And will not reveal anything sensitive. Which, by the way, is a disadvantage of cryptocurrency compared to cash or credit card. It is often used by criminals since all the information is hidden and anonymous. And increases the overall crime rates over the web.
4- Minimal Fees
We all know that traditional banking system is based on fees. When banking in traditional systems, there are fees for opening new accounts, processing money, using ATMs, international transfers, and fees that grow depending on how much money you’re dealing with. The list goes on and on! Nevertheless; on cryptocurrency, you don’t really have to deal with any kind of fees. Of course, some crypto wallets will charge you for the usage of money. But in most cases, cryptocurrency fees are simple and static, and won’t change depending on the amount of money or distance between the place where you are and the place where you send the money. Whether you are buying an instant noodle from your local market or a brand new Tesla car, fees are not likely to fluctuate. Not paying any fees might seem okay. But you may say: I can build up a credit score on the traditional bank system and earn money with compound interesting! Well, you can earn money with crypto if you have access to internet, and a computer. Earning money will lead us to our last bullet point.
5- Opportunity for Passive Income
Our last point is about earning money with mining cryptocurrency. This allows the average person to earn cryptocurrency by making their computer. The good thing is, mining is accessible to anyone with internet access and allows users to earn rewards for their efforts right away, while regular money can sit tucked away in an account, with only very minimal and gradual growth over a long period of time. In coin mining, you don’t give out lots of effort or time to earn. But as I said before, mining will be a “passive” income. What I mean by that is you will need powerful crypto farms to make it into your bread and butter. So in this case, compound interesting is a bit more in front of crypto mining.
In general, I think it is possible for humanity to switch to crypto wallets in the next 30 years. They both have their advantages, but traditional money is way more hard to manage, and it is quite more expensive. So yes, in my opinion, cryptocurrency is an alternative to regular money.