The cryptocurrency market has gained in popularity in the last few years, with more and more users reaping the benefits of crypto trading.
El Salvador, for example, declared Bitcoin its legal currency in 2021, which only demonstrates how huge this market has become. If you are not so familiar with crypto, learn 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 complete these common operations.
Forbes also suggests that approximately 15% of Americans presently use some form of electronic currency like Bitcoin, Ethereum, and XRP. Undoubtedly, this advancement in payment technology changed the global economy and continues to leave its mark on the world.
Here are just some of the many ways cryptocurrency has positively impacted the world:
Change the money transfer process
Bank-to-bank transfers may be efficient, but they still have some drawbacks. Some transfers, particularly the international ones, can take weeks to be deposited. But with cryptocurrency, things are different – these do not involve the same balance and check processes as banks, so funds find their way to the deposit faster. Whether you have to make a national or international transfer, you have the certainty that digital coins are transferred instantly, and no fees are required. Besides, you do not have to worry about security issues as the blockchain is based on data decentralization, which means that your electronic money is securely stored and tracked.
Crypto as a viable form of payment
Although cryptocurrency has no sure value (due to its novelty on the market), it could make for a feasible form of payment. As we already mentioned, it allows for instant national or international transfers, which can influence its demand in the future. Since the value of cryptocurrency is the value people provide it, there are chances that this form of payment will one day be the most popular (and maybe the only) form available.
Moreover, the intense printing of money can lead to the devaluation of the currencies we often use. The hope that cryptocurrencies would sooner or later be the future of payments makes crypto enthusiasts worldwide keep their coins secured in an electronic wallet. If the demand increases, so does the cryptocurrency’s value.
If you are new to the crypto world, you need to do serious research before trading any currency. It may be helpful to invest in popular currencies like Bitcoin and Ethereum. The latter, for example, is the world’s second-largest blockchain network, with Ether (ETH) as its native digital coin. Unlike Bitcoin, Ethereum can serve various purposes, so developers praise it so much. Participants can also use Ethereum to develop further applications and payment platforms besides purchasing and holding it as a store value. The first step to take when buying Ethereum is to choose your exchange. Depending on your particular needs (and familiarity with the platform), you can select 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 ETH price before making the big move.
Keep businesses and individuals accountable
You may be wondering what crypto has to do with companies’ practices. Well, a lot. Although it is hard to believe, some companies follow illegal and corrupt practices relating to financial operations. That is why you should never take for granted what companies write about themselves on paper; more often than not, the reality is different. Transactions and purchases made with cryptocurrencies are trackable, so there is no risk of being tricked.
Paying employees could be more convenient with crypto
Cryptocurrency has found its place in the business world. Since the pandemic, numerous businesses have pushed for digital payments. Thus, virtual coins like Bitcoin and Ethereum have been adopted by employers and are now relatively normalized than speculative assets. According to BusinessChief, a growing number of large organizations are driving electronic currency adoption. After Elon Musk had announced early in 2021 that individuals can 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 consider paying their workers with crypto. It is even more advisable for employers running a remote company to take the crypto route. Dealing with payroll for workers living in various parts of the world can be downright stressful. That means you have to convert dollars into other currencies to pay your team. But this is not even the worst part: handling the hundreds of currency conversion fees is. The traditional conversions cost you money, but they are also uncertain – it takes a long time for workers to see the transaction’s status and receive their salary. Cryptocurrency, instead, allows for instant transactions across state lines with minimal-to-no rates.
Reduce fraud
Fraud is a common issue that should not be overlooked regarding money. Individuals and companies alike frequently transfer funds or use a credit card for an online purchase, but it is just that nothing is sure on the Internet; thousands of insecure websites can deceive you and take your money, and you either recover it after long efforts or never know what happened to it. Cryptocurrency has nothing to do with cash funds or bank accounts, and it is transferred digitally and safely through the blockchain. As blockchain technology is developed to make it impossible for malicious actors to forge the data stored on or hack the system, cryptocurrency is the safest method to avoid fraud.
Cryptos have a real moment
Although crypto continues to go up and down, it slowly but surely shapes the future of finance. No one knows exactly when digital coins will be our only available payment option, but it is believed to happen in the near future.
