Cryptocurrency is a digital currency and payment system that is completely different from usual currencies. Bitcoin is the first invented cryptocurrency by Satoshi Nakamoto (2009). It’s called as the decentralized digital asset or digital gold. Bitcoin is an open source software which means that not any particular person, company or nation owns it (just like the internet). This follows peer-to-peer network i.e. 2 or more participants can transact individually without any involvement of bank or any central authority.
Some investors prefer to invest in Bitcoin while others find it risky even now. I have collected 5 points to describe the benefits of investing in cryptocurrency:
1. Increasing acceptance for Cryptocurrency
Cryptocurrency user acceptance is growing all over the world. There will be more investors investing in crypto currency and more sellers/merchants using it as a payment mode. It’s increased usability has also helped in growing capital market investment of Cryptocurrency. The world is rapidly adopting Cryptocurrency, India, China, South America, Africa and much more. Many new tools have been discovered to make Blockchain more advanced.
When cryptocurrency was launched, it was used only for private exchanges but nowadays, its applications have increased and more people are being favorable towards this concept. Decentralized nature of cryptocurrency makes it an asset that can drag anybody’s attention due to the benefits it may introduce. Extreme returns and adaptable volatility are responsible to increase its demand.
2. Flexible Trade
The Cryptocurrency-trading is very convenient and flexible. To buy cryptocurrencies, a credit/debit/PayPal or a bank account is needed. Blockchain technology makes it super easy to buy and sell a Cryptocurrencies. Transferring as well as exchange process of Cryptocurrencies is also very easy. One thing to consider here is that transfer process is irreversible that’s why it should be performed with utmost care.
3. Immune to Inflation
While using regular currency, a risk of inflation keeps on revolving. regular currency can use its value anytime when the government doesn’t stop to print more of it. But while considering Cryptocurrency, it is free of any government regulation that’s why no such act can create a situation of inflation. Another thing to discuss here is that supply i.e. production of Bitcoin or any cryptocurrency is kept fixed to a certain level which helps to maintain its value.
4. Increased Protection
Due to the blockchain technology being used in Cryptocurrencies, it cannot be counterfeited, hacked, change or manipulated. Cryptocurrencies transactions are being processed using cryptography and once cryptocurrency has been sent, the process cannot be reversed.
Cryptocurrencies decrease the possibility of intrusion. Unlike credit cards (pull mechanism), Cryptocurrencies use a “push” mechanism that avails the Cryptocurrency holder to send anything without adding any redundant information. At the time of the transaction or before that, there is no need to provide your name; Digital wallet IDs work well with Cryptocurrency.
Using a cryptocurrency, you can send or receive money from any corner of the world to anywhere. The transactions are all digital, that’s why cryptocurrencies operations can be done anytime. The crypto-world knows no limits and it benefits its users with the same. While transacting using cryptocurrency, you have full access to your money without any interference of government bodies. Only a peer-to-peer network is established. Through Blockchain, public ledger of transactions is maintained that avails complete transparency.