Guest Post by Dan Miller/BizzMarkBlog
When it comes to online trading, the greatest concern is unpredictability of the digital environment. One of the greatest fears is identity theft, seeing how the party making a purchase is usually required to leave confidential information to the online merchant. We are talking about things like your credit card information. On the other hand, paying with cryptocurrency is often compared to paying with cash and there is no way in which it can be traced back to you. As an additional benefit, they also have an advantage over cash payments – they cannot be counterfeited. Cryptocurrency is a digital money and it is created straight from the code.
- Deflationary currency
You don’t have to be an expert analyst to know that the inflation is one of the biggest problems of the modern economy. All you need to do is use a simple inflation calculator to see that in 1970, $10 held the value of the modern $64.04. This alone is a truly alarming fact and one that just goes to prove that the world’s economy isn’t heading in the right direction. Luckily, cryptocurrency is both deflationary (seeing how they are capped) and decentralized alternative to these major currencies, such as dollar or euro, which makes it an ideal solution to this particular problem
2. The number of currencies is rising
Another thing you need to keep in mind is that the number of currencies is currently on the rise, as well. Just several years ago, Bitcoin was considered to be synonymous with the term cryptocurrency. Today, however, the rules have changed. For instance, one can buy and sell digital currency and have quite a lucrative business. Although Bitcoin may still reign supreme for some time, in the future, we can expect that the number of these cryptocurrencies rise and, in a way, mimic the trend of traditional currencies.
3. Transparency is the biggest problem
Finally, it is not all sunshine and roses in the world of cryptocurrency either and there is one problem that has a lot of businessmen worried. We are talking about the obvious lack of transparency. While every single dollar has the U.S. Treasury Department standing behind it, people who mine cryptocurrency are often completely unknown to the public. However, this creates a curious and unprecedented situation. Instead of having the power of the currency in the hands of the few, this control now belongs to the entirety of the internet population. While this may seem terrifying to some, in practice things are running quite smoothly so far.
At the end of the day, trading in cryptocurrencies is safer, cheaper, and faster. These three benefits alone are enough to explain why it is inevitable for cryptocurrencies to take a bigger role in the global economy. When you take into consideration the two above-listed perks of being deflationary and decentralized, it becomes more than clear just how far ahead they are when compared to the traditional currency. According to one comparison, the difference between cryptocurrency and the traditional currency is nothing like the difference between the email and the traditional physical mail.