Cryptocurrency Over the last few years It has gained a lot of popularity. People these days are becoming acquainted with terms like ‘Bitcoins’ and ‘Ethereum’. These are nothing but different kinds of Cryptocurrency.
It is nothing but a digital currency that is created and managed by encryption technology. It was initially started as an academic concept; however, with the introduction of Bitcoins in 2009 Cryptocurrency became a reality. With time Bitcoins started gaining popularity and number of investors has also grown.
Benefits of Cryptocurrency .
- No risk involved: Cryptocurrencies are digital hence it is risk free from any kinds of frauds. It cannot be counterfeited as well.
- Identity theft: The moment you give someone else your credit card, he/she has access to your credit line, even if the amount is minimal. Credit cards work on a simple principle where the store initiates payment from your card i.e. it ‘pulls’ a particular amount from your account. Whereas in it the owner of the ‘pushes’ a particular amount to the store’s account.
- Immediate settlement: If you wish to purchase property, you will have to follow various steps that includes lawyer, notary and many other steps. However, if you choose to purchase a property using cryptocurrency, all third party interventions can be removed. With it the whole process becomes much easier and short as well.
- Easily accessible: These days almost everybody has a mobile phone and internet. Anybody who has access to the internet can use cryptocurrency. Using this is very similar to using online banking websites and applications.
- Low fees: For cryptocurrency there is basically no exchange fee since the miner is compensated by the network. Even if there is no exchange fee for this in general. However, many users engage third-party services like coin base, which helps, in maintaining bitcoins. Third party services as Coinbase is very similar to Paypal hence they charge some fee. This service charge is very less compared to regular banking services.
Advantages and Disadvantages
Everything that has advantages also has disadvantages. Cryptocurrency apart from being risk free and easily accessible has some disadvantages. Continue reading to know about the disadvantages.
- One of the major disadvantages is that most people are not aware of cryptocurrency and its existence. The concept of digital currency is still vague to some people.
- Most businesses do not accept cryptocurrency as a mode of payment. This is because most people are not aware of its usage. However, major companies like Samsung and Apple have started accepting cryptocurrency.
- The process of starting out with cryptocurrency is very lengthy and not easy to understand by many people.
There are always pros and cons for everything around us. To be able to make a good decision, you first need to know about the pros and cons of a particular thing. You also need to weigh the advantages and disadvantages before making your final decision. However, cryptocurrency is more about mass acceptance more than technological development. Finally, more and more people should have knowledge about cryptocurrency.
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