THE HONEY (MERITS OF CRYPTOCURRENCY)

As we all know cryptocurrency has become popular in our current world. The reason for this trend is because of what I call its unique honey, by that I mean its benefit. We are going to talk about what makes cryptocurrency way better than fiat money. And we are going to talk about the following

Ease of transaction

Security

Decentralize database

Opposition to inflation

International money

Authenticity

Low transaction fee

EASE OF TRANSACTION

Operating with fiat currency you will notice that these currencies are restricted. For instance, if you are to carry out a transaction where you need to access the bank, you have to work within the time frame that the banks use, so if you are in urgent need to make a transaction at the bank at night or on a weekend you will be unable to perform any transaction.

The case is different when dealing with cryptocurrencies Transactions can be made at any time or any day of the week. it is open for transactions always once you have a smart device and the internet you can carry out any transaction without delay.

Another thing about cryptocurrency is that unlike fiat money it does not require a third party. Using fait money, a third party is always involved which is the bank this can lead to difficulty in some transactions.

Documents have to be presented after that they have to be verified by a third party before the transaction can be approved.

Cryptocurrency completely removes the third party unlike fiat money where the traditional banks have authority over your money when using digital currency, you have full power over your money and you can easily carry out your transactions with the other person.

SECURITY

It’s very common when using traditional banks certain things are needed by the banks your personal information is required before you can carry out any transaction such as your name home address and the amount of money you have in your account. Aside from that for every transaction made the bank which is the third party keeps the recorded this act increases the risk of identity theft or getting hacked.

Digital currencies have a very secure network due to the blockchain if a transaction is to be carried out no personal information such as name or house address is needed you can go about your transaction anonymously.

Moreover, no third party is required the transaction is always between the sender and the receiver which completely reduces the risk of being hacked. due to these strict measures, cryptocurrency has become safer for carrying out any transactions.

DECENTRALIZE DATABASE

This is one of the best things about cryptocurrencies it is completely free from any kind of government and cannot be monitored controlled or influenced by any government policies. The market decides the values of digital currencies, not the government. Any type of transaction done with cryptocurrency can’t be affected by the government be it buying or selling it is indent by the government.

OPPOSITION TO INFLATION

Inflation is something that occurs with fiat money the reason for this is because money is being printed and when done in excess it leads to inflation and when there is inflation the value of the money tends to decrease because of this.

Cryptocurrency has a trump card to ensure inflation doesn’t affect using bitcoin as an example. Bitcoin has a fixed amount of what can be available to the whole world. The fixed amount of bitcoin that can ever be produced is twenty-one million bitcoins once it reaches this limit it won’t be produced anymore. Due to this, the value of this currency is preserved.

Also, after every four years, the rate at which one can create or mine bitcoins reduces which makes them scarce hence it increases their value. cryptocurrency can’t be created in large numbers hence it can be a victim of inflation.

INTERNATIONAL MONEY

Anytime fait money is used it is under the rules of a government. For each government, there are different rules. This comes to play when making a transaction with a different country you have to follow the rules guiding that country.

This brings us to the conversion of money, if you have a hundred dollars and you want to make a transaction to a bank in London you will have to convert your money to what is been used before you can carry out your transaction, so if you are to make a such transaction to five different countries you will have to do five different conversions and also for each transaction you will be charged an exchange fee.

Using cryptocurrency, it is far easier to do your transactions in any part of the world at any time being immune to any rules or conditions by any government, and when you are charged a fee for the transaction it way cheaper than that of traditional banks.

AUTHENTICITY

Compared to fait money where there are cases of counterfeit money or having just one central bank to resolve issues of falsified or unclear records cryptocurrency is preferable this is because of the ledgers it has on the blockchain.

First of all, it is not fait money so it cannot be faked this is because of the specific process it requires to be created. And when these are unclear transaction, it is resolved swiftly this is because it is crosschecked with ten of thousands of computers that hold that record so the issues are taken care of because of this it becomes impossible to manipulate the blockchain or to falsify any transactions.

LOW TRANSACTION FEE

Transaction fees are way cheaper when using cryptocurrency than fiat money which makes use of a third party. One of the reasons why cryptocurrency comes out cheaper than fait money transactions is because of the cryptocurrency network.

This network pays the data miners and people who work for the blockchain which leads to a low or no fee paid when carrying out any transaction. When a third party is brought in by the choice of the individual to help manage the wallet for example the fee charged is still cheaper than that of traditional banks.

In our world today because of the huge advantages cryptocurrency carries so many big companies have decided to embrace cryptocurrency a few of them are listed below

Microsoft, Google KFC Apple Tesla, etc.

another major reason for this currency is that it is very volatile and has a risk but if done properly it can be a large gain. In December 2015 the price of one bitcoin was 424.96 dollars in December 2021 the price of one bitcoin was 47,128 dollars.

Cryptocurrency can bring lots of benefits when done properly. However, before stepping in you should get the right information to know how the system works.