Cryptocurrency is a relatively new asset class that began with the creation of the block chain bitcoin in 2009. Despite the fact that crypto has been around for more than 10 years, people are still learning about cryptocurrency and how the networks are working together. The biggest benefit of cryptocurrency bitcoin as well as most other cryptocurrencies based on block chain technology is that there is no central authority.
This means there is no government, no central bank and no payment processor or company owner taking shares. Instead, when you use your crypto bank, your cryptocurrency is dealt with peer-to-peer. People can transact directly with one another which means there are no fees. In this article, we have put together five other benefits of cryptocurrency you may not have been aware of.
- The transactions are easy. Crypto transactions are not difficult at all, nor are they high cost. They are also much more private than most other transactions because there is a factor of no central authority. All you need is a smart phone app, a hardware wallet, or an exchange wallet, and you can send or receive a variety of cryptocurrencies including bitcoin and ethereum. Some types of cryptocurrencies can be bought with cash at a bitcoin ATM, so you don’t always need a bank account to use crypto. Somebody could buy bitcoin at an ATM using cash and then send those coins to the phone.
- The security is top-notch. Cryptocurrency security is determined by the hash rate. The higher the hash rate the more computer power it would take to compromise the network. Cryptocurrencies are based on a cryptography and Blockchain security model, and the decentralized cryptocurrencies tend to make for much more secure forms of payments. This might be one of the biggest benefits of cryptocurrency. It’s the most secure cryptocurrency, with bitcoin having the highest hash rate of any network so far. Using a cryptocurrency exchange is just as secure as going for it directly.
- The settlement times are short. Some people just want to invest in cryptocurrency for the price appreciation, whereas others might like to invest as a medium of exchange. Transactions can cost anywhere from nickels and dimes for several dollars or more, and why are transfers could cost so much more than this and take 3 to 5 business days to settle. Payments in cryptocurrency take minutes or even seconds to settle, which means you get your money much faster.
- The industry is growing. The cryptocurrency industry has been one of the fastest growing markets for many years now, and it’s the future of finance. If you’re involved in cryptocurrency now, you’re going to see the biggest differences in the next few years compared to where we were in the 90s. The market For cryptocurrency in 2013 was $1.6 billion but within 10 years of that by June 2021, the market had raised to over $1.4 trillion.
- Is the future. Cryptocurrency is the future, and investing now means that you are going to be a big part of that future that will take time to develop that will be beneficial to all one-day.