Cryptocurrencies have been around for a while now. However, it was not until 2009, when Bitcoin popularized them. Today, they have moved from being an obscure online cash alternative for online transactions to one that governments are now seriously considering adopting.
The only challenge that has hindered the growth and adoption of cryptocurrencies as a viable way to fully transact digitally is the fact that many people see them as a conduit for financial scams such as ransom-ware scams and other dark web transactions. It is true that many fraudsters, criminals and terrorists have in the past hidden behind the anonymity of cryptocurrencies to do their illegal business.
However, the adoption of the currencies into mainstream trading has led to governments and financial institutions putting in place measures to curb these crimes. The process of adopting cryptocurrencies into the mainstream has not been easy, in fact, many governments still hold strong reservations.
However, these governments and institutions which have not adopted Bitcoin are missing out on the possible benefits that they can bring in unlocking the digital economy.
The traditional mode of transaction is not easy. It involves a lot of cumbersome bureaucracies. For instance, you have to deal with middlemen such as brokers, agents, legal representatives and others whose role is to make sure the transaction goes according to the set safety standards.
Bitcoin, and the entire Blockchain technology eliminates the middleman. Each transaction you make using Blockchain technology receives a special signature, which can help trance the transaction back to the one who made it. The digital signature simplifies the audit process because everyone with access to the system can simply log in and check the trail of any questionable transaction and establish where the irregularity occurred if there is one.
When the middleman is cut out, the transactions become easier and the two parties involved have less of a headache trying to figure out who is responsible for certain processes.
Adding to the Confidentiality of Transactions
One of the main reasons people shy away from digital transactions is that their personal details might get compromised. Some of the common ways in which this information gets compromised include when hackers access data from online stores.
The other facet of regular transactions is that when you are making a transaction such as a bank transfer to pay for an item, the middlemen involved in the transaction may have access to your entire transaction history in the process. If the transaction is complex, the middleman may even demand for your complete transaction history record.
Cryptocurrencies address these two confidentiality problems quite easily. First, when you use a cryptocurrency from a crypto casino, the exchange is unique, and the only people who will know its terms are you as the buyer and the seller.
Second, as stated, cryptocurrency transactions use Blockchain technology. While the special digital signature will trace the transaction back to its source, it also ensures that your identity is hidden the entire time. Cryptocurrencies, therefore protect you from identity theft more than any other mode of digital transaction.
Reduction of Transaction Fees
A lot of processes are involved in the traditional financial transactions. This leads to transaction charges, and if you are keen enough, you will notice that your monthly statement will have a few hundred dollars going towards paying transaction charges.
Transaction fees are common when you are carrying out transactions such as transferring funds, writing checks, and even maintaining an active account. Online transactions do a great job when it comes to cutting out these costs. However, cryptocurrencies are excellent in eliminating all these charges.
The people who do data mining receive their compensation from the cryptocurrency companies, and they do not need to charge you as much to manage the transactions.
Simplification of International Trade
International trade using the current methods can be a headache. It takes days for the financial transaction to be approved, and at times, transactions fail altogether.
Another common complication that arises when you are doing international transactions using the old methods is that your transaction will be subject to the levies, charges and even forex rates of the country you are buying from or selling into.
The amazing thing about cryptocurrencies is that they operate independently from all these financial loopholes set by the different countries. Blockchain technology ensures that you make your transactions without facing hindrances such as currency exchange fluctuations.
Other benefits that you can reap from investing in cryptocurrencies for your transactions include greater access to credit and improved security of the transactions. You just need to make sure that you are getting your cryptocurrency from a reliable source. As long as you have a quality currency source, you can eliminate all the common hurdles related to dealing with digital trade. You can even use cryptocurrency as the edge to beat your competitors in business.