Man went from trading in barter to hard cash, to the birth of the card and finally to paying through your smartphone.
The birth of the cryptocurrency through Bitcoin has changed the way people look at trading through a monetary medium since then. It is a globally engaged medium that has gained the interest of the common man, small companies, larger companies, and whole countries as well. After Bitcoin, other digital currencies like Bitcoin Cash and Litecoin have emerged among others, giving people the chance to choose between different cryptocurrencies.
Read also — How digital currency will change the world
More people are switching over to invest in crypto and use crypto for a host of reasons that have an advantage over traditional fiat money. While the reasons for this positive switch may be endless, I wish to concentrate on the following five:
Introducing People to a Secure Wallet
Many people around the globe have used the services of traditional banks for several reasons. They either do not have access to the service in their area, overestimate the paperwork that goes into opening an account, they do not trust banks because of the hidden charges or they are worried they will lose their money in some sort of catastrophe. Even if banks are not available in many areas, almost every person has access to a smartphone. This new Avenue allows for people to trade financially, straight through their phones, in a secure manner.
Privacy
Banks take in a lot of personal information that can be stolen. When it comes to cryptocurrencies, you provide much lesser personal information. Depending on the type of cryptocurrency you invest in, some focus on keeping your privacy intact and keep your transactions anonymous.
Ease of Use
When you pay with crypto, you can apply for a crypto card according to the cryptocurrency you invest in. So if you decide to use Bitcoin, you can get yourself of Bitcoin card and swipe it at an establishment that allows you to pay with Bitcoin (like Starbucks), just like a Debit card.
Besides the simple swipe method, you could much easily just transact using your phone directly for payments locally, nationally, or even globally, directly to individual buyers or companies, using platforms like Ethereum.
Security
Cryptocurrencies are encrypted in a decentralized system and hence can be traced within the blockchain through nodes. All transactions follow this in a previously set code that is chronological and makes it impossible to hack or reverse the payment like with traditional third parties. You can verify the transaction of follow it anonymously.
Taxation
Cryptocurrencies are taxable in some countries, but most do not tax you until you exchange your digital currency for fiat currency. In this way, you can store up your currency and exchange amounts you require, thus controlling your taxable income. There are sites like Ripple that show you exchange rates of the cryptocurrency you have to the fiat currency you want to exchange it with. It is always wise to check the exchange rate before changing over your currency, to ensure that your taxable amount is controlled.
Cryptocurrencies are highly beneficial, especially for the individual and the small business. It allows you secure currency without the need for an external party, it is easy to use on the go, it is highly beneficial when it comes to taxation in most countries and allows for stress-free, cheaper transactions, globally.
Cryptocurrencies are not without their faults, but they pose a much superior case to the traditional methods of transaction. Most of the flak you hear online on cryptocurrencies are from traditional institutions that have not based their statements on facts. The advantages mentioned here are a few, but there are many more as well. Just like digital currency, the information is all just a click away.
