As the business and financial world moves forward in technological advances, social media, and e-commerce, the need for currency to keep up becomes critical. The practice of currency has seen advances and changes over time, but has not moved toward cyber existence in any large scale way. Until 2009, when the creation of the Bitcoin made its public appearance. It revolutionized the way currency is created, stored, and spent. But if a Bitcoin sounds like something you might achieve in a video game, let's backtrack.
Cryptocurrencies are virtual currencies that use cryptography for its security. Bitcoin was the emerging leader in this domain, but many have been formed since like Litecoin, Namecoin, and Ethereum to name a few. As with anything innovative and new, the views of this are mixed with positive and negative. But as business is going mobile and the cyber world affects so much of the rest, maybe this practice needs to be given a fair shake. This type of currency does carry many advantages over it's minted counterpart, but, to break it down for better consideration, there are really two main categories that the benefits can be summarized into.
Security
Although cyberspace has changed the very fabric of business and financial operations, it also carries with it a very expensive problem, hacking. Since technology is an ever-evolving field, it can be nearly impossible to stay one step ahead of potential threats. No matter how large or seemingly secure, anyone is vulnerable to cyber attacks. And, as technology advances, so does the scale of damage. In this article, you can find that an "estimated global annual cost of malicious cyber activity ranges from US $ 300 B to US $ 1 Trillion." That's a lot of cash. And this is where cryptocurrency gets a shiny gold star.
Since cryptocurrencies are encrypted and digital, the risk of counterfeit, theft, and bad transactions are greatly reduced compared to physical currency. According to Nasdaq, "there is currently no transaction mechanism that is currently more safe and secure than those that use cryptocurrency." Not to mention, other currencies are based on a centralized system, which can be seized or shut down by the government at any time. Cryptocurrencies are decentralized, so the threat of government intervention is much lower. Although this does open doors and is very tempting for criminals, large, legitimate organizations won't have concerns over false government shut downs, and the cost it takes to right them.
Of course, cryptocurrencies are not immune to attacks, hacking, and threats. But, as intelligence and means only grows in this arena, having the highest security possible to protect your assets is critical.
Convenience
Cryptocurrencies take away boundaries of space, time, and culture. Since your funds are electronic, transferring, purchasing, or doing business can be conducted at any time, across any border, and in your control. There are no brokers, lawyers, banks or other channels that must be crossed in order to access your funds. From international recognition to full ownership of property, cybercurrency creates a convenience like no other.
This in conjunction with the low-cost associated with cryptocurrency, the user ease is above standard. There are no cost transaction fees, and with things like reversal of payments for situations like refunds or in the case of fraud or disputes, that can save a chunk of change. Also, funds can be immediately delivered to the recipient without the traditional wait in cases like this. These together create a convenience that physical currency simply cannot compete with.
Cryptocurrency is primed to take off and become more mainstreamed and widespread. Understanding what they are and the benefits that can be assumed from them, will allow you to feel educated as this wave of the future of currency crashes into the world. Be sure to subscribe to our blog for more insight into other financial and professional aspects.
