The Benefits of Cryptocurrency

the benefits of cryptocurrency and the problems they solve?

Cryptocurrency has great benefits. to understand those benefits let’s take a look back at the history of money.


The history of money :

since the begening of time, people used something as a source of value.

at the start people were only trading an object for an object.

but lets imagine you own only two eggs and you want to buy a car, how can you trade now? so a third entity was needed to complete the trade, for example seashells.

then people used coins made of precious metals, so what they did was weigh the coins and trade it for something else a car for example.

these coins didn’t have any value, they were just wieghed, so later people started to put a value on those coins.

next people used paper money backed with precious metals like gold or silver.

backthen you could walk into a bank and trade your bank notes in gold.

then this gold standard was removed and replaced with the printed money we use today.

but there is a  problem with printed money, they are not rare. the meaning is more money can be printed so with time its worth become less and less.

only gold can retain its value, but gold is not easy to store, subdivide nor transport.

so, unlike printed money, CryptoCurrency is rare. for example Bitcoins, only 21 million can be made, thats what makes it rare.

now lets talk about the benefits of cryptocurrency.

1. it doesn’t involve a third party:

to understand that, lets imagine you need to buy a car.
this process require a third party involvement for example, the old car owner or a lawyer, maybe extra fees etc.
this is going to consume more time, effort and money till at the end you might give up.

before we say how cryptos can solve this problem let me tell you a story that happened to me.

my company made a visa card for every employer and they send our salary on this card.

once i had a problem with the card and i couldn’t use it to withdraw my salary, so i had to go to a bank to get my sallary.

first, you take a number and wait your turn, when your turn finally come they need to check your identity and make papers for the withdrawal process, after that you need to go to the teller and wait another turn to get your money after signing more papers.

imagine how much time it took to complete this withdrawal process.

but, with cryptocurrency you can send botcoins direct from one computer to another within minutes, no third party involved and it only cost  a few money to complete this process. so cryptos are the way to save time and money. its called decentralised system because you have full control on your money.

2. Cryptocurrency has lower risk:

nowadays people don’t keep money in their pocket, instead they use payment cards. but what if the server is down or there is a problem with the atm machine and you don’t have cash, you can’t pay.

when you use your card you give the receiver access to your credit line which is considered a risk, yes now we have PIN numbers that lower the risk but there will always be a risk.

when you complete the payment with your card the money is pulled from your account using the information within your card.

with cryptos, this is different, the payment is completed without any personal information needed, and your account is encrypted which ensure the safety of money transactions.


3. protection from fraud:

imagine someone stole your card and used it for payments, this is what is called a fraud.

but with cryptos, your personal information is hidden which gives you more protection from fraud, also the cryptos transactions can not be reversed which ensure more security.

with cryptos you can’t cheat, the decentralised system can not be manipulated or hacked by anyone, its very secure no one can make any changes to it.

but can someone really hack the blockchain system? the answer, its impossiable because that system have thousands of comuters around the world connected to each other.

if someone wants to hack that system, he needs to hack thousands of comuters, not only that. the blockchain data refreshes and updates every few minutes so he needs to hack thousands of comuters with few minutes, can someone really do that?.


4. universality:

nowadays we can actually send and receive money online across the world, but with traditional money there is always a problem such as bank authorization, card issues (your card might not be acceptable in another country), unacceptable payment methods and more issues..

but cryptocurrency can be used in any part of the world, at any time with no problems.

cryptocurrency operates on an international platform which in turn save time, make transactions easier and saves more money.ei