Digital currency may have been a myth even a few decades back. But, now it is a reality. With the increasing popularity that cryptocurrency is gaining, it is a natural reaction to accept it as a part of our life.
Some pros that these digital currency offers are:
- This form of currency offers the maximum level of transparency possible. Cryptocurrency is made possible by the technology of blockchain. Blockchain allows cryptocurrency transactions to be visible across several devices. Therefore, the owners of bitcoin can access the same records from anywhere in the world at any point in time.
- Since there is no intermediary involved like banks etc., crypto transactions are much faster as compared to regular currency. The transaction is significantly lower and less likely to be. There are separate bitcoin hosting agencies that can help you manage them if you want them to.
- Cryptocurrency demands a very low transactional cost from its users. There are only two parties involved. And, they are the buyer and the seller of cryptocurrency. Therefore one does not have to pay a hefty commission to trade in cryptocurrency. Moreover, no taxes have been imposed on cryptocurrency yet. Therefore, not only does it reduce the transaction cost, but it reduces the tax liability of the owner as well.
- The chances of fraud are considerably lower. Cryptocurrencies are secured by cryptography. This technique makes it nearly impossible for someone to counterfeit the currency or use it twice.
- The records are available for viewing at all times. Since the entire database is stored online, it becomes very easy for the owners to access it anytime they wish.
- There is a complete anonymity of transactions. The transactions in a blockchain are secured using cryptography. Cryptocurrencies are digital and hidden in nature. Therefore, the owner of a crypto does not hold it under his or her name. Even if the transactions are analysed later, it will be difficult to track the transaction back to an individual. Unless you are aware of the exact details of that person.
Just like regular currency, cryptocurrency also has both positives as well as negatives.