One does not need to mention the importance of cryptocurrencies and the role they have to play in this world. An idea that was merely as good as a concept a few years ago, has now assumed such a stature that it is impossible to envision a world without the existence of cryptocurrencies in it. Now, cryptocurrencies might not have been adopted into the mainstream financial market with much gusto yet, but they are slowly making a move towards its mainstream adoption and will probably not rest until the goal is reached. Speaking of cryptocurrencies, there still remains a gap in our holistic understanding of the domain. But, it is imperative that we understand the quite complex field of cryptocurrencies in order to make wise decisions in the near future. Cryptocurrencies have the potential of replacing the fiat currency in its entirety. Therefore, it is important that we understand what these digital currencies are and the reasons why they could possibly replace traditional money in the future.
The Inception and Subsequent Development:
The idea of a form of digital currency that could enable faster transactions all across the globe took birth in 2008. The idea seemed ludicrous since the driving force behind cryptocurrencies was its nature of decentralization and running a means of financial transaction without the involvement of a third-party did not bode well. However, once the highly ambitious project rolled out, there remained no smidgen of doubt regarding its potential. Cryptocurrency (Bitcoin to be the first of its kind) and the technology running it, the blockchain network, were declared a massive success at once. However, like every great endeavour faces criticisms and has impediments to overcome, cryptocurrencies also had its fair share of struggle in its initial days to cross. There was a minor debacle that Bitcoin faced soon after its launch. However, it managed to work its way through them and rose stronger than ever. Now, after more than a decade, the world has seen several cryptocurrencies on the fore, and the blockchain network has more security and transparency than ever before.
The Ways in Which Cryptos Can Replace Fiat Currency:
It might not occur to you now, but cryptocurrencies have all the potential in the world to wipe fiat currency out of its existence and emerge as the only currency to grace the planet ever. This might seem like a far-fetched dream, but one could cite several reasons as to why it is a possibility nevertheless. We shall now move on to look into a few points that would help you gain more insight into the said topic.
Cryptocurrencies Are Safer Than Any Form of Currency-
Cryptocurrencies might not require any third-party overviewing its functioning, but it definitely requires a medium for the transactions to go through. The blockchain serves as that medium, and it is a transparent and secure medium of transactions. Therefore, indulging in criminal activities like money laundering and the like become a rarity.
Cryptocurrencies Can Be Controlled 24/7-
The problem with the government interfering with the transactions of traditional currency is that it is not possible to deal with them all day long. You cannot run to a bank in the middle of the night and transfer quick funds. However, with cryptocurrencies, this is a possibility. Cryptocurrencies can be transferred at all times and instantly. And speaking of fund transfers all day long, payment gateways like Flexipay
must be considered as options when you have transactions using cryptocurrencies to make.
It Has A Low Transfer Fees-
It is way too easy to transfer funds all across the globe because it does not require a high transferring fee. This is a winning point for cryptocurrencies given that any fund transfer requires quite a heavy amount of money. Therefore, when people eventually find out that cryptocurrencies have the benefit of a lower processing and fund transfer fee, it is normal that people would flock more towards its territory and ditch the fiat currency.
Cryptocurrencies are amazing little things when you think about it and factor every aspect associated with it. From making money transfer easy as ever to ensuring complete anonymity and safety, cryptocurrencies are definitely the way to go.