Cryptocurrency adoption is a widely discussed topic in the community. But really, why should we use cryptocurrency? Are there some great perks crypto will bring to our lives?
From the very beginning of Bitcoin, cryptocurrency was sparking the interest in the investment community. As the crypto market started to grow rapidly, more and more eyes were turning to blockchains as, if not an alternative, but a good option for cash substitution. With all this happening all around the financial world, how many people actually started to use cryptocurrency and why? Guarda will help you make sense of it.
Let’s start with the basics.
What is cryptocurrency?
If you put aside all the fuzz around crypto, you will be left with quite a simple definition. Cryptocurrencies are limited entries in a database. Yes, that’s it. Actually, if you talk about any currency (including the real-world money) you will find that when stripped of all the ideological and financial meanings, money is limited entries (in some kind of database).
Cryptocurrency originated in 2008. The discovery was made by the mysterious Satoshi Nakamoto. Satoshi’s invention is not only important because of the rise of Bitcoin, but because this person found a way to build the first decentralised digital payment system. Creating this Peer-to-Peer network was the birth of cryptocurrency.
Why exactly should we use cryptocurrency?
Bitcoin was invented as an alternative online payment method that aimed to solve many problems of the existing online payment systems. The main benefits of blockchain technology are:
Decentralization. The beautiful buzzword that defines the crypto space. The data is stored with all the users, there are no central servers, information is immutable, the users are kept moderately anonymous and so on, and so forth.
Transparency. The blockchain exists on such a transparency level that can never be reached by any fiat currency.
Transactions cannot be changed. As it was already mentioned above, the information stored on the ledger is immutable. So, once you make a transaction, there can be no changing. Merchants are the ones winning the most from this feature. Transaction reversals can cost a great deal of money for a business – blockchain eliminates this issue.
These are the main points cryptocurrency users have in mind when talking about adoption. Surely, there are other benefits to using cryptocurrency.
How will using crypto help you?
Cryptocurrencies are entities recognised universally. Think about it this way – crypto is not bound by the exchange rates, charges of a taken country or high transaction costs. If you are to use cryptocurrency internationally, nobody can really say no to you. This may potentially save a lot of time and money for both the businesses and the customers. Easy transactions are the key.
All the well-known electronic cash systems are owned by someone. If a company in charge decides to take actions and, for instance, block your account, you are left with nothing. With crypto, you own your private keys (if you are using non-custodial services, of course) and nobody can take away your right to own the funds.
When will everyone start using cryptocurrency?
This is possibly the most complicated question of all. The use of cryptocurrency still has a very long way to go before we can talk of crypto replacing bank cards and fiat (traditional) currencies. Many people are still in the dark about cryptocurrencies, blockchain technology and their abilities. This is why we need more education about cryptocurrencies in use. For wider adoption, the word needs to be spread out. The future of cryptocurrencies definitely is in the potential of the full fund control – so, if understood properly and put in use, crypto certainly could be the initiator of many changes in the financial systems, business and global economy.