In this video we’ll go through why people use cryptocurrencies and if it’s digital money what is it used for? The benefits of cryptocurrency include, fraud-free and safer because cryptocurrencies are encrypted string of data as one unit of currency.
They can’t be counterfeited or reversed as a credit card chargeback can, identity theft can’t occur with cryptocurrencies because of the way it works, while a credit card does allow for it, immediate settlement, much lower fees if any, because the miners, the people who record transactions are compensated by the network, they aren’t usually transaction fees for cryptocurrency exchanges.
Access for those who don’t have access to the traditional exchanges, an example are Kenyans, currently, one in three people from Kenya own a Bitcoin wallet, cryptocurrency is not governed by the government or a company but instead is open to everyone.
No international issues because cryptocurrency is all digital and there are no exchange rates, interest rates, transnational fees, and country charges it operates universally so all transactions are simplified and cheaper.
No company has the power over your money, for example, some banks make use of PayPal, between the bank and PayPal they control your money and fees and if PayPal decides that your account has been misused they can freeze it, forcing you to do what they say to get it unfrozen, this is not the case with cryptocurrencies, you can transfer your digital money into real money, inflation is not likely, cryptocurrency is easily transported no matter the amount.
There are also cons to cryptocurrency and these cons include, not all companies currently accept cryptocurrency as a method of payment because it’s still relatively new, people don’t understand cryptocurrency nor do they trust that it’s safe. If digital money gets lost it can’t be recovered, whoever is in possession of the codes is the owner of the money.
Cryptocurrency transactions can’t be traced, although of course, this is not always a bad thing, cryptocurrency is a commodity, and as such, subject to the changing market prices. Now we’ve covered the pros and the cons of cryptocurrency. What do people use it for? We use it as a gift for clients, it is both meaningful to them and is easy to give and can be given to clients that are located anywhere in the world.
You can make private transactions that you don’t need to explain, you can give non-cash remittances to anyone in the world, for example, send to friends, family, clients, or remote workers money that pays for the utility bills or mobile data top-ups.
Without needing to be an experienced venture capitalist, cryptocurrency allows more investors to buy into early startups that show potential Travel the world and pay for everything with cryptocurrency.
You can use directories to find merchants who accept cryptocurrencies, these are just some of the benefits of cryptocurrency.
But we haven’t even covered the tip of the iceberg, although the cryptocurrency is by no means mainstream, and we still need banks for many transactions, the more people turn to cryptocurrency, the more demand there will be created for sellers to accept it as a payment method and the more choice you’ll have with regards to spending your digital money.