6 Ways Cryptocurrency Will Change the World
Cryptocurrency is an electronic currency that is used for online transactions. They utilize bitcoin...
Cryptocurrency is an electronic currency that is used for online transactions. They utilize bitcoin technology and are considered by many to be the future of how we will transact. It is a digital asset that uses strong cryptography to ensure safe financial transactions by verifying the transfer of digital currency.
The blockchain technology is complex in itself, but its use in monitoring and transferring the currency to different users is unmatchable.
It's part of the reason why these currencies are considered to be quite secure. Many people in the space envision the world moving into a blockchain economy. There are definitely some real-life use cases for cryptocurrencies in the real world.
Let's explore the top 6 ways blockchain could change the world.
1. In E-commerce to reduce fraud
E-commerce is expected to get to greater strengths once cryptocurrency is widely adopted. The underlying technology used by these currencies (blockchain) allows for every transaction done to be verified.
By doing this, there is a reduced risk of fraud of both parties for fraudulent transactions will be minimized.
Cryptocurrencies are also expected to ease how people do business as the currency isn't subject to the same international laws and trade restrictions.
2. Increase cross border transactions
Most of the cryptocurrencies available have fast processing times and low transaction costs. Money transfers are instant and secure when using cryptocurrencies. These currencies have low regulations (aren't covered by the same regulations as financial institutions) and are easily convertible.
All of the above makes them the best option for cross border transactions. This is especially so when compared to what's available in the market currently.
3. Increase global remittances
Wire, bank to bank money transfers, Western Union and MoneyGram are a few of the best methods for remittances. These methods tend to be costly and take quite some time for your money to clear.
Cryptocurrencies eliminate this problem because of the low transaction costs, security and fast transaction times. Let's not forget that they are also easily convertible.
It's popular with freelancers as it reduces the cost since there is no foreign currency exchange rate applied and no transaction amount is levied. Virtual employees in countries like Kenya, India, Philippines, and many other countries, who work as writers, developers, writing term papers online, this is a good way of getting paid.
Once widely adopted, industry experts expect more people to use cryptocurrency as a means to transfer funds between borders.
4. More crowdfunding
Cryptocurrencies have allowed for a concept called an ICO (Initial Coin Offering). An ICO is similar to an IPO where the company raises funds but instead of giving away a part of their ownership, they give away a cryptocurrency token specific to the ICO.
For the investor, they buy into the ICO in hopes that the token will perform better in the future and allow them to reap the rewards.
An ICO mitigates risk for both investors and startups. For the startups, its less costly than an IPO and it's not governed by the same standards and allows for more investors to participate.
With ICOs and cryptocurrencies and reviewing business case studies, more startups have been able to crowdfund and get access to money that would have been difficult to raise in the past.
5. More control over your own money
Many crises have occurred in recent times, the financial crisis of 2008 being one of them (still fresh in many people's mind). People have seen the power that many banks and financial institutions yield. They are not accountable with their customer's money and are not answerable to anyone.
This has led to a growing distrust of banks as people have realized that they don't have as much control of their money as they thought.
Cryptocurrency changes that. It brings the power of money back to the people. It's not guided by the same regulations that financial institutions use. Instead, it utilizes blockchain technology, one of the most secure peer to peer technologies available. This is how blockchains could change the world.
6. A stable alternative to FIAT money
We do admit that not all cryptocurrencies are stable, many have seen just as high a rise as they have seen a fall (we're looking at you Bitcoin). With that said, many of the other currencies have been stable and prove to be a great option.
FIAT money has been unstable ever since the abolition of the gold standard. With some countries experiencing worrisome levels of inflation. Cryptocurrencies with this regard offer a more stable alternative.
Like with any new technology, you stand to gain if you adopt and use this technology before it becomes mainstream. Cryptocurrency is going to change the world and we think for the better. Blockchain technology also will affect many other industries as its use cases to transfer and verify the information is quite useful. We see cryptocurrency continuing to become popular as time goes by.
The crypto industry is evolving and changing with adoption rates rising. Be it tomorrow or ten years from now, cryptocurrency and blockchain technology will change the world for the better.
Bryan Davis is a famous FX blogger who writes informative and trending posts on blockchain technology and the rise of cryptocurrency. Many organizations have utilized his superior knowledge to gain insights to launch ICO's and join the crypto bandwagon. In his free time, Bryan loves cycling around the city, trying various salads in the kitchen and helping new authors build their careers.