Cryptocurrency has a lot of benefits that make it a more ideal mode of payment. But if it is better than fiat currency, why isn’t it more widely used today?
Cryptocurrency, though not a lot of people know it, initially came out as a way to give the public an easier and more secure method of purchasing goods. Despite its apparent benefits though, the true potential of cryptocurrency has yet to be fulfilled. Not a lot of people have in-depth knowledge about what goes on when using cryptocurrency, or even in the ways on how you can use it. And even among those who know the ins and outs of the digital medium, there are different opinions regarding its viability as an alternative to fiat money.
The first group see cryptocurrency as an easier and more secure way of paying for goods. Some businesses, both online and brick-and-mortar, have taken to accept certain cryptocurrency as payment for services and products. Then there is the other group who see crypto as just a means to scam people.
The general perception of cryptocurrency is still positive, though. Even though the market valuation of most of the coins is still well below their all-time high, most people would still choose to trust in a decentralized ledger when they know of the benefits and the potential it carries. But what exactly are the advantages cryptocurrency has over national currency?
1. Confidentiality and Security
When making use of credit/debit cards when purchasing goods, you are actually putting yourself in a substantial amount of risk. When you swipe your card, or when you punch in the numbers in order to make an online payment, you actually have to input or give out your private information, such as billing address, name, actual address, and others. A lot of hackers are able to easily grab this information, and do many things with the information they got from your card.
Cryptocurrency significantly lessens that danger when making use of digital payment. Due to blockchain technology, where it records all the information of your transactions and balances on to other blockchains in the same network, outside sources would not be able to easily purchase things in your name compared to credit or debit cards. We aren’t saying it is impossible to hack or steal your money in cryptocurrency, but it is easily preventable by being a bit more careful, and hackers also have a significantly harder time trying to steal from you when your money is in cryptocoins.
Another thing cryptocurrency has over credit cards are that there are no charge-backs. Once a transaction has been cleared and authorized, there is no chance for a reversal.
2. Accessibility
Research shows there are a little over two billion people in the world that have access to mobile phones, or internet, or both, and yet they don’t have the ability to use traditional credit and debit cards. When cryptocurrency becomes more accepted globally, everyone will be able to transact around the world with their phones alone. Because of cryptocurrency’s nature as a digital mode of payment, it belongs to no country. When you want to purchase something in Europe, and then have it shipped back to the U.S., there is no need for any exchange rates, or the like.
Once a price has been agreed upon by the seller and buyer, the transaction will take place, and then the item is received. Because of it being largely unregulated, cryptocurrency isn’t closely scrutinized by regulatory entities that would delay the purchasing process. Also, because you can already trust that your currency is secure with a record of your balance in the distributed ledger, transferring and receiving coins is quick and easy as well.
3. Recognition
Because cryptocurrency is not tied down by exchange rates and interest rates, or similar charges of other countries, it can easily be made use of globally without having to experience the inconveniences that usually happen with fiat money. On the business’ part, it also saves a large amount of money and time. Transferring funds from one country to another costs money and time, which is bypassed when using cryptocurrency. As of now, there is no other digital mode of payment where your currency isn’t owned by someone else.
We say “owned” because most traditional virtual payment systems rely on a third party to record transactions and such. Because of this, they will have access to every single detail about your account, and they will be able to do things even without your consent. For example, the authorized party detects something wrong in your account, they would then immediately freeze it in order to make sure your account is secure. This might take days at a time, and you wouldn’t be able to access a single cent of your money in that account.
4. Easier transactions for real estate
When you put your house up for sale, or when you buy one, there are a lot of things you need to prepare, and a lot of people you need to pay, in order to finalize the transferring ownership. Commissions, paperwork, and brokerage and legal fees are only some of the examples of the services you need to pay for just to get a house. Not only do these cost a significant amount of money, they add a level of complication that could so easily be bypassed by cryptocurrency.
Cryptocurrency transactions are strictly one-to-one affairs. There’s the seller and the buyer; the seller states the amount he asks for payment, and, if the buyer accepts, they begin the transaction. No middleman involved; no other authorities you need to hire in order to make sure everything is shipshape. Once that is validated and the coins have been successfully transferred, it’s done. It is that simple, and compared to traditional ways of investing in real estate, cryptocurrency transactions are extremely less complicated, and you get to save money as well.
In conclusion
After reading all of this, it is clear cryptocurrency has significant advantages over traditional currency. But if that is so, why isn’t it being widely accepted or implemented today? Although there are shops that are getting more and more interested and are allowing payment through cryptocoins, there are still those who are wary. Truth is, though cryptocurrency has the potential to totally replace fiat money, there are a lot of factors that are preventing it from happening right now. A lot of people are still quite dubious about cryptocurrency, and despite all the media attention it has been garnering, people are still generally in the dark about what it could do.
The CafeCoin Foundation has plans in store in order to have cryptocurrency be more widely accepted and usable. It has determined the factors that are blocking cryptocurrency from global integration, and it specifically targets those blocks to have everyone be able to easily make use of cryptocurrency’s full potential. At the same time, it also magnifies the benefits cryptocurrency has over fiat money, and in time, cryptocurrency like CafeCoin will become the conventional way to pay for goods.
