The Bitcoin Boom:In Cryptos We Trust
Updated: Oct 9, 2019
Bitcoin can never be killed, thanks to its decentralized structure. Whether you are a business or an individual not yet part of the crypto community, I’d like to point out the awesome benefits that you, the prospective crypto user, may like to know about and hopefully tempt you into investing in some of your first crypto assets. The truth is, cryptocurrency offers many advantages that traditional fiat currencies don’t and these benefits far outweigh any potential risks.
Cryptocurrency is based on public-key encryption and peer-to-peer networking. The blockchain technology that backs digital currency gives you the luxury and security to maintain full control over your money, data and privacy online. It is also very easy to set up a digital wallet given the accessibility and accompanying low transaction costs, along with speedy transactions and identity protection. You never reveal your personal data, unlike when you opened your traditional bank account. This system sets up a payment scheme that could lower transaction costs in business and remittances, cutting out the middle man.
It’s extremely encouraging to see that more and more businesses are embracing digital currency because of their low transaction costs. Many companies want to be associated with innovation and with the cutting edge of digital technology. They are coming up with many creative ways to appeal to customers now using Bitcoin and other cryptos. Let’s say you own a small business. Anytime you receive credit card payments, each card swipe costs you a fee, in addition to having to remit 3 to 6 percent of your total sales to the credit card company. Some credit card companies also charge extravagant fees for businesses to join the network. With Bitcoin and with cryptos in general, there is no cost in joining the network and most fees are less than 1%.
Say goodbye to identity theft! Blockchain technology uses a rigorous combination of hashing and proof-of-work, which makes the network tamper-evident. Cryptocurrency transactions are bullet-proof because it is virtually impossible to tamper with the information in any of the blocks within the network. What's more, cryptos like Bitcoin let you make payments without divulging personal information that is subject to hackers.
The permanent nature of Bitcoin allows "abstraction of personal information and significantly reduces the risk of fraud, something that merchants, card processors, and banks spend billions of dollars per year combating. With Bitcoin, for example, the target data breach that comprised 40 million consumers' credit card information, would not have been possible.” (https://tedium.co/2017/11/27/digicash-ecash-bitcoin-history/)
Digital Currency is also proving itself valuable in the developing world. The World Bank has had its eye on blockchain, which could signal a worldwide adoption of cryptocurrency. As of this year, there are 1.7 billion unbanked adults in the world, restricted not just by poverty but by paperwork, travel costs, lack of transport to and from institutions, illiteracy and countless other factors. By expanding digital payment instruments, digitizing government (G2P) payments and developing and implementing national financial inclusion strategies (NFIS) developing countries could have a great shot at enabling access to a transaction account among other financial services.
Cryptos are taking over - so you might as well get in sooner rather than later!