The cryptocurrencies since they were born in 2009 with bitcoin as a pioneer, have become a real financial means: to make purchases, investments, payments, transfers and any type of transaction. If you still have doubts about the use of cryptocurrencies, but you want to know more about how much you have heard them named lately, then this article will be very useful. The value of cryptocurrencies is not in a physical asset but is a fiduciary type, that is, it is based on the trust of the people who make transactions with them and as long as there are more transactions, there will be more confidence.
Here we present some of the main advantages of using cryptocurrencies as a means of payment, thereby becoming a real approach to the meaning of cryptocurrency and its current value in society that goes beyond the monetary value to become in an advance in the way of seeing the global economy.
- 1 Transactions are faster than traditional bank transfers
- 2 Taxes and fees are minimal
- 3 There are no intermediaries in the transaction
- 4 Transactions are completely private and secure
- 5 The way to make the transaction is very simple
- 6 Cryptocurrency is completely decentralized
- 7 Minimizes the possibility of fraud
Transactions are faster than traditional bank transfers
Unlike conventional bank transfers and transactions, transactions with cryptocurrencies work more transparently and quickly. Although the time of each transaction varies between each type of cryptocurrency, in the end it ends up being less than the “average time” of traditional bank transfers.
Taxes and fees are minimal
Normally transactions that are made internationally have high rates, even some of them must pay certain taxes, and there are also cases of other digital payment systems that have relevant costs. In the case of bitcoin and other cryptocurrencies, the transfers that are made have a minimum cost (which is around 1% approx.) Which is lower compared to other means of online payment in the market (for example, PayPal charges a 5.4% transaction fee plus 0.30 USD if money is received for goods or services).
There are no intermediaries in the transaction
Each operation you perform with cryptocurrencies is only given between the initial user and the end user. To better understand this you can review the previous article titled what are smart contracts? Where we explain how this represents an advance and a revolution in the way of seeing the economy and the way in which business is handled (for example Ether is the financial unit of the blockchain technology “Ethereum” and works under this modality of intelligent contracts)
Transactions are completely private and secure
The user’s identity is always hidden, unless he wants to reveal it himself. When operating with cryptocurrencies, only one source address and one destination address are handled, so that no personal data of any of the users involved in the transaction is needed, which generates more confidence in this methodology.
The way to make the transaction is very simple
If someone wants to make a payment with cryptocurrencies, they only need to know which digital wallet they will transfer to, place the amount and authorize the transaction, in a matter of seconds, minutes or hours (depending on the type of cryptocurrency). Money will arrive in the destination wallet in a safe and verifiable manner.
Cryptocurrency is completely decentralized
This means that there is no single company or business behind the operations. There is a blockchain network in which everyone can participate and everyone is responsible for the security of the money that operates there.
Minimizes the possibility of fraud
The transactions that have been made with cryptocurrencies can’t be reversed and the “accounting book” in which they are registered (the blockchain chain) is always available for everyone, that is, at any time they can be consulted but can’t be modified, because the security protocol implies that for a transaction to be completely valid, it must be approved by several entities in the chain and it must contain some minimum parameters that are linked together, this makes it almost impossible for any data to be altered to increase or decrease records.
What do you think about this topic? Is there any other advantage of using cryptocurrencies as a means of payment that you would like to share?
If you want more information about buying and selling cryptocurrencies you can contact us or write your query in the bottom part (comments section).
Image of WorldSpectrum via Pixabay.com under creative commons license.