Cryptocurrency is revolutionizing the way we think about money. It changes the way we store our money, do business and pay for services and products. As with all new technology, it has its supporters and detractors.
Some investors refuse to accept cryptocurrency because they feel it encourages speculative investment and they believe that the current bubble will burst. Others believe cryptocurrencies are here to stay and will change the world as we know it.
Cryptocurrency is a transfer of value that is stored digitally. Its movement is tracked using blockchain technology that stores transactions in chronological order and in a way that data can be seen but not changed. Bitcoin might be the most high profile name, but there are thousands of other cryptocurrencies gaining popularity. Here are some ways in which they can make the world a better place.
1. Revolutionizes money transfer
Cryptocurrency transfer does not require the same processes used by banks. Transfers do not require any fees and are tracked and stored securely by blockchain technology. Some bank transfers, by contrast, can take a week or longer to clear, especially when an international transfer is made.
2. Allows people control over their own money
Cryptocurrency takes the control of money from banks and puts it into the hands of people. High-interest rates and other fees charged by banks make people want to keep cash at home rather than using banks. Cryptocurrency could offer an alternative option, allowing individuals more control over their finances.
3. Provides a stable solution in times of uncertainty
Economic crises in some countries cause concern about funds saved in banks. In countries where standard currencies are subject to extreme instability and inflation, switching to cryptocurrency could prove beneficial and provide more certainty and stability.
4. Provides new ways to crowdfund
Crowdfunding is becoming a popular way for entrepreneurs to raise money. Their risk is mitigated by many people making small contributions.
ICOs (initial coin offerings) and other types of token sales are used as a source of capital for the startup of ventures centered on cryptocurrency. This gives entrepreneurs access to a wide pool of potential funders.
5. Promotes scientific advancements
Blockchain technology means that information and data can be stored and shared in a secure way. This can eliminate barriers to the sharing of knowledge and spread access to important data and information.