In this tech-paced world, everyone has heard or read about cryptocurrency and blockchain technology. Although these technologies are still in their infancy, they have shown immense growth in a short period of time. Similar to any other newborn technology, these innovations also hold great potential to change our lives.
Most of the people are however clouded by the question: ‘what is a cryptocurrency?’. According to the definitions, cryptocurrency is known as a virtual currency which is built on cryptography. Due to its structuring on cryptography, it is highly secure and hard to break through. A major feature of cryptocurrency is its decentralized model which is due to its utilization of blockchain technology. This implies that the government of Hong Kong or any other authority cannot manipulate or hamper the value of this digital currency.
The conceptualization of cryptocurrency stemmed from the limitations that traditional banking systems in Hong Kong put forward such as threat to the safety of our funds. Moreover, concept of cryptocurrency also overcomes the danger of inflation and threat caused by Hong Kong’s government. With cryptocurrency, all these restrictions are set aside.
So here are some cutting edge advantages of cryptocurrency :
- It is completely decentralized: The primary benefit that cryptocurrency brings about is its decentralized system. Rather than being stored in a third party banking institution, you save your cryptocurrency in a decentralized manner online. This also eliminates the requirement to carry a physical wallet or paying traditional banking fees. Furthermore, cryptocurrency comes under no government regulations. Hence, it stands far away from the risk of inflation and it cannot get affected by any governmental issues.
- Anyone and everyone has equal access: There are millions of people who are cut away from the traditional banking system. These people have more probability of having internet connection and mobile phone. With just these two things, everyone and anyone can enjoy the ease presented by crypto world.
- It is more secure: With traditional bank entities like credit cards that hold your information, one can ‘pull’ money out. But with cryptocurrency, you can only ‘push’ or send the money. Hence, cryptocurrency leaves no way that would let anyone take out money without the private key access.
- It presents an earning opportunity through mining: Unlike fiat currencies, with cryptocurrency, you can initiate mining and earn a passive income. Although you require high-value computer equipment to mine, but you can repay the value of your equipment quickly through the process.
- Cryptocurrency is borderless: Cryptocurrency has brought around a method of international transaction that anyone can easily utilize. On the top, cryptocurrency is away from the fluctuating exchange rates, transaction charges, and interest rates. Cryptocurrencies have eliminated all these limitations. With cryptocurrency, you can send and receive money from anyone and anywhere as long as you have a computer and internet connection.
These are just a few strong points or advantages cryptocurrency possesses. Hence, it can be aptly stated that cryptocurrency has everything that a next generation currency must have. From low fees to quick and easy transaction, with cryptocurrency, you get everything under one umbrella.