What are the objective reasons to use cryptocurrencies? The question is sound, and there is a non-perplexed answer to it. The introduction of cryptocurrencies into the global trade system is a step towards creating the opportunities for everyone to engage in this system. If you’re no slouch at technology, a parallel can be drawn between the currently promoted idea of cryptocurrencies and the concept of Internet that began to gain momentum in the early 1990s. It would’ve been an unjustified foolery, had people neglected the former back in the day. The same applies to cryptocurrencies, which hold immense benefits for mankind. Let’s list the main of them for clarity.
The advantages cryptocurrencies offer:
- You are enabled to transfer the money to any individual in any corner of the world; the transaction is completed almost instantly; no middlemen are involved; no additional fees or charges;
- You can buy bitcoin with credit card;
- Cryptocurrencies can even be used by those individuals who lack access to the present-day banking system; thus, they expand the number of participants in the financial system, enabling everyone to become a part thereof;
- The blockchain mechanism is expandable, which can lead to ground-breaking changes in the modern principles of handling money;
- The mining of cryptocurrencies requires a huge computing capacity, which can be put to good use through forming a decentralized network of applications based on the blockchain technology. An example of a cryptocurrency targeted at creating a framework and foundation for applications rather than a payment system is Ethereum (aka ETH).
How ambitious is the concept of cryptocurrencies? Is its future promising?
Recently, the attention of the wider public has been aimed at BitCoin, the first big-name cryptocurrency. The future will certainly bring more of them. After the emergence of BitCoin in the world’s financial system, many developers engaged in the field of digital currencies made it their goal to improve certain aspects of the BitCoin mechanism and create something new on its basis. Need faster and more secure transactions? Welcome to Quark (QRK)! Need a light mining platform that doesn’t occupy every bit of your PC’s computing power? You’ll certainly enjoy GhostCoin (GHC)! Value the anonymity of transactions above all? Resort to DarkCoin (currently known as DASH). Chances are high one of these cryptocurrencies will become the “new BitCoin” in the coming decade.
All in all, the indisputable future-proof advantages of digital currencies are: users exercise full control over the money they bring into the system; across-the-globe transactions are carried out in a fast and secure manner; transactions are accompanied by nearly non-existent fees and charges, as opposed to the greediness of the existing currency transfer and banking systems. If we make the effort to understand the idea of cryptocurrencies and the principles of their functioning, it may change our understanding of the concept of money on a fundamental level. Last but not the least, digital currencies offer a way to do sort of a “social good” to assist the poor across the world who lack access to the traditional banking services.