The cryptocurrency market has grown in popularity in recent years, with more and more users enjoying the benefits of crypto trading.
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El Salvador, for example, declared Bitcoin its legal currency in 2021, which only goes to show how huge this market has become. If you are not so familiar with cryptography, know that a cryptocurrency is a digital asset developed as a medium of exchange. So, instead of making transactions or purchases with physical money, you can now use digital coins to perform these common operations.
Forbes also suggests that around 15% of Americans currently use some form of e-money like Bitcoin, Ethereum, and XRP. Undoubtedly, this advancement in payments technology has changed the global economy and continues to leave its mark on the world.
Here are some of the many ways cryptocurrency has positively impacted the world:
Change the money transfer process
Bank-to-bank transfers can be efficient, but they still have some drawbacks. Some transfers, especially international transfers, can take weeks to deposit. But with cryptocurrency, things are different – these don’t involve the same balance and verification processes as banks, so funds find their way to deposit faster. Whether you need to make a domestic or international transfer, you can be confident that digital coins are transferred instantly and no fees are required. Moreover, you don’t have to worry about security issues because the blockchain is based on data decentralization, which means that your electronic money is securely stored and tracked.
Crypto as a Viable Means of Payment
Although cryptocurrency has no safe value (due to its newness in the market), it could be a feasible form of payment. As we have already mentioned, it allows instant domestic or international transfers, which may influence its demand in the future. Since the value of cryptocurrency is the value that people provide to it, chances are that this form of payment will one day be the most popular (and possibly the only) form available.
Additionally, intense money printing can lead to the devaluation of currencies that we often use. The hope that cryptocurrencies will sooner or later be the future of payments is prompting crypto enthusiasts around the world to keep their coins safe in an e-wallet. If the demand increases, the value of the cryptocurrency also increases.
If you are new to the world of crypto, you need to do some serious research before trading any currency. It can be useful to invest in popular currencies such as Bitcoin and Ethereum. The latter, for example, is the second largest blockchain network in the world, with Ether (ETH) as its native digital coin. Unlike Bitcoin, Ethereum can be used for various purposes, so developers praise it so much. Participants can also use Ethereum to develop other payment applications and platforms in addition to buying and holding it as store value. The first step to take when buying Ethereum is choosing your exchange. Depending on your particular needs (and your familiarity with the platform), you can choose from centralized and decentralized crypto exchanges or buy it from an online stockbroker. However, since Ethereum and cryptocurrency in general are highly volatile, it is recommended to analyze the price of ETH before making the big move.
Hold businesses and individuals accountable
You might be wondering what crypto has to do with corporate practices. Well, a lot. Although it is hard to believe, some companies follow illegal and corrupt practices related to financial operations. This is why you should never take for granted what companies write on paper; more often than not, the reality is different. Transactions and purchases made with cryptocurrencies are traceable, so there is no risk of being cheated.
Paying Employees Could Be More Convenient With Crypto
Cryptocurrency has found its place in the business world. Since the pandemic, many companies have pushed for digital payments. Thus, virtual coins like Bitcoin and Ethereum have been adopted by employers and are now relatively normalized compared to speculative assets. According Entrepreneur, a growing number of large organizations are driving the adoption of e-money. After Elon Musk announced in early 2021 that individuals could pay for vehicles with bitcoins, many other big names like Burger King and Coca-Cola followed suit.
With digital currencies becoming so popular among businesses, employers are considering paying their employees with crypto. Employers running a remote business are even more advised to go the crypto route. Dealing with payroll for workers living in various parts of the world can be downright stressful. This means you need to convert dollars into other currencies to pay your team. But that’s not even the worst: dealing with hundreds of currency conversion fees is. Traditional conversions cost you money, but they are also uncertain – it takes a long time for workers to see the status of the transaction and receive their pay. Instead, cryptocurrency allows instant transactions across state lines with minimal or zero rates.
Reduce fraud
Fraud is a common problem that should not be overlooked when it comes to money. Both individuals and businesses frequently transfer funds or use a credit card for an online purchase, but it’s just that nothing is safe on the Internet; thousands of insecure websites can cheat you and take your money, and either you get it back after long efforts or you never know what happened to it. Cryptocurrency has nothing to do with cash funds or bank accounts, and is transferred digitally and securely via blockchain. As blockchain technology is developed to prevent malicious actors from tampering with stored data or hacking the system, cryptocurrency is the safest method to avoid fraud.
Cryptos are having a real moment
Although crypto continues to rise and fall, it is slowly but surely shaping the future of finance. No one knows exactly when digital coins will be our only available payment option, but it’s believed to be in the near future.