The popularity of cryptocurrency is not without cause. There are numerous ways in which cryptocurrency improves upon traditional fiat currencies. Many people in the industry simply see it as the next step in the evolution of money, such as when we transitioned to using bills and coins or to using credit cards. To gain a better understanding of cryptocurrency, look at some of the biggest advantages it offers over traditional currency.
One of the biggest benefits of cryptocurrency is the fact that it is decentralized. Instead of a third-party bank storing the currency, it is stored online in a decentralized manner with all the transactions appearing on public ledgers. Since cryptocurrency does not follow the traditional centralized system of banks, you do not have to worry about carrying a physical wallet or paying traditional bank fees.
The fact that crypto is decentralized also means that it can be used anywhere. There is no need to exchange cryptocurrency when you travel and you will not have to pay pesky conversion fees. This is particularly convenient for those who frequently travel or have international transactions.
When it comes down to it, the fees associated with decentralization are a huge advantage for cryptocurrency. Those traditional bank fees can add up, particularly when you deal with currency conversions or fees for using ATMs in another country. By contrast, the fees associated with cryptocurrencies tend to be significantly lower.
Because cryptocurrency is decentralized, it improves accessibility. This can greatly help the people around the world who are unbanked. Those who do not have any banks near them or do not meet the strict requirements of the banks to open an account can still purchase cryptocurrencies if they have internet access.
Going back to a comparison with traditional banks, it is the norm for credit card transactions, bank wires, and other transactions to take days to settle, or at the very least hours. By contrast, many cryptocurrencies can settle transactions instantly, so you do not have to wait around and keep an eye on your account for days.
Some people wonder how cryptocurrency can be more secure than fiat, but it comes to a push vs. pull method. With traditional credit cards, any entity that has your information can “pull” money out of your account. With crypto, by contrast, you need to “push” or send money. There is no way to take money from a crypto wallet without having the private access key.
The fact that you can mine cryptocurrency is also a benefit as it allows regular people to earn passive income. While it is no longer possible for an average person with normal hardware to mine Bitcoin and make a profit, this is still the case with many other cryptocurrencies. Mining is straightforward once you get the hang of it and can quickly pay for the cost of the equipment depending on the coin you choose to mine. Those who cannot afford the equipment can also find alternatives via cloud mining companies.
With access for everyone, better security, lower fees, quicker settling of transactions, and other benefits, it is clear to see why cryptocurrencies are so popular. Even with skeptics airing their views, the overwhelming consensus among experts is that crypto represents numerous advantages over traditional currency and is a step toward the future of money.