Why is it better to have a good crypto coin in your possession than just money? That question is asked more often and more often, especially now that the prices for cryptocurrencies are rising.
To start with, all rules regarding cryptocurrencies are laid down in advance in a mathematical and encrypted manner in the blockchain. You cannot create coins or print notes, as is the case with the US dollar and the Euro.
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That is also a reason why the value of cryptocurrencies remains valid. There is no more and when the last coin is mined, the process is complete. It is then only a means of exchange. No cryptocurrency can be created, but no cryptocurrency can disappear either. So it keeps circling in the economy.
No banks are involved in a crypto currency. This puts banks out of the game and limits government control and interference.
In a very disadvantageous case, the government will issue its own cryptocurrency, which we are then obliged to purchase in order to retain that control. But the developments in cryptocurrencies are going so fast that even governments cannot keep up with them.
SEPA
Another reason for opting for cryptocurrencies as a payment method is the SEPA. The SEPA system was established in 2008 to create one large payment circle in Europe. The banking system was then greatly overhauled.
Transactions are provided with the IBAN account numbers and these are in the hands of the bank. You are not insured for the money that you have in your bank. Up to 100,000 euros at most. When a bank collapses, as in the Netherlands the DSB has collapsed, you can whistle for the money above the ton.
Cryptocurrencies are not located at a bank, but safely on a wallet in your possession. The only thing you could still use from the bank is the safe to store that wallet.
Money from your old sock
You can compare payment with cryptocurrency with money from your old sock. Nobody can see how much money is in it and how much you have to spend. You get out of what you need and you shift it to someone else.
You actually do that with cryptocurrency. You transfer the money to the recipient. You and the recipient know this from each other, but another does not.
A major advantage of this is that you do not have to pay any transaction costs. A transfer is from person to person and not from person to bank to person.