Cryptocurrency has recently been a topic on many investors’ radars, with the technology industry continuing to innovate and create new advancements. Cryptocurrency is an additional layer of security that inherently provides a way to transfer money online without relying on traditional banking institutions. Here are some of the key benefits of investing in cryptocurrency.
1. Fraud Protection
Because cryptocurrency is generated through cryptography or coding, it eliminates the risk of fraud that consumers typically face when using credit cards or other means to make purchases. Furthermore, the blockchain – an encryption database used in many cryptocurrencies that records all transactions – prevents double spending, which can occur with traditional currency.
2. International Transactions are Fast and Cheap
Many online payment platforms charge a flat fee for sending money internationally (typically 3-4%), and transactions take several days to process. Additionally, banks charge an additional charge for international wire transfers.
Cryptocurrency transactions, however, cost significantly less to complete – between 1% and 3% – depending on the payment method and size of the marketing. Additionally, there are no fees for cryptocurrency transactions conducted at home or overseas.
3. Very Lucrative Short-Term Investments
While the long-term potential of cryptocurrency investments is still uncertain, investing in these currencies can be very lucrative in the short term. Usually sold at a steep discount on the market, cryptocurrency is purchased in small amounts that can quickly snowball into significant gains.
4. Cryptocurrency Can Be Used as a Store of Value
Cryptocurrency provides additional security and eliminates third-party fraud during online transactions. As more money flows online and credit card fraud rates continue to increase, cryptocurrency may prove promising for consumers and businesses. Many financial experts predict cryptocurrency could emerge as an alternative currency over the next decade.
5. High Rate of Adoption
According to Goldman Sachs, more than 300,000 businesses across the globe accept Bitcoin as a form of payment. Financial institutions and national governments are also beginning to work with cryptocurrency. Consumers can purchase airline tickets using Litecoin, flights using Dogecoin, and even pay for college tuition using Bitcoin on some platforms.
6. Accessibility and Global Implications
Cryptocurrency is the first global currency, allowing consumers to purchase and send money to anyone worldwide. Additionally, anyone with Internet access can conduct exchanges and use cryptocurrency to transact online.
Cryptocurrency has made a name for itself because of its incredible benefits, and as it continues to gain popularity, it is evident that technology will only be advancing. The future of cryptocurrency will bring much-needed improvements to the financial system and benefit consumers and businesses.