Despite the fact that cryptocurrency has become more of an investment over the years, the original cryptocurrencies were designed to be a store of value and a digital currency for those who were seeking a break from traditional fiat. Even now, that mission stands strong as developers continue to work on new and improved stablecoin models that seek to hold up against the strong volatility that we see in the crypto market. Should we see more widespread use of these products or should you be interested in trying to use your own cryptocurrency for payments, here is a list of some of the benefits that come with using cryptocurrency over traditional fiat.
1. Lower Transaction Fees, Especially Across Borders
Sending money often comes with fees, especially if you are sending it to individuals who live in different countries or if you are using a payment service instead of a bank. These larger fees chip away at the overall amount and make it costly for both sides to send and receive money. With cryptocurrency, however, transaction fees are significantly lower so that the recipient of your transaction gets the money that you intended to send. Considering the weight and number of these fees, this is a major benefit for those who are constantly sending payments to others.
2. Faster Transactions
Another major problem that plagues regular fiat is the amount of time that it takes to send and receive money. While you may be able to get access to money in as little as 24 hours, some payments may take longer to process, which can be very inconvenient to those who need access to this money immediately. Cryptocurrency solves this by making payments immediately so that the money you send is in someone else’s wallets within seconds (or if it takes longer, minutes). Even if your cryptocurrency takes a couple of minutes to become accessible, this is still much better than having to wait days to touch your money.
3. Control Over Your Funds
Banks allow us to hold and use our funds and are necessary if we want to live in today’s world. However, some people may not always be comfortable with keeping their money in the bank, which may or may not truly be a concern for some individuals. Others may want to simply have money stored away in a safer alternative that only they have access to. Fortunately, crypto provides this safer, more secure storage method as it allows users to store their funds on their own personal wallet for safekeeping. Instead of having a bank manage your assets, you manage all of your own crypto on your own personal wallet. Having control over their money can often be a plus for certain individuals.
4. More Secure Payments
Cryptocurrencies are inherently more secure than other payment methods. Fiat currency can put you at risk because of the personal information needed to make transactions. There are other issues as well. One great example lies in chargebacks, which can be used to revoke payments after services or products have been purchased. Cryptocurrencies eliminate these issues by making payments irreversible and eliminating the need of having to use personal identification to make payments. Therefore, everyone using digital currencies runs less risk of having personal details stolen or money taken back after it has exchanged hands.
While there is still much work to be done in terms of cryptocurrency solutions, the ideas underlying the technology hold a lot of promise for those who want to try something other than fiat.