There are a handful of benefits to making use of cryptocurrency for transactions. Let’s take a quick look at the advantages of using cryptocurrencies such as Bitcoin over fiat currencies.
EQUAL SHARE OF AUTHORITY
Cryptocurrency payments are decentralized meaning that transactions that are involved take place in a decentralized accounting ledger. There are no middlemen or Banks or government parastatals involved. In the blockchain, decentralization refers to the transfer of control and decision-making from one central point (individual, organization, or group) to a distributed network. The authority is separated and dispersed evenly to all users hence each individual using this payment system has equal authority by the power of the transactions that they make.
There is actually no central authority that decides on the proceedings of the cryptocurrency landscape and fluctuations solely depend on demand and supply.
Related: How to start trading bitcoin with Yellow Card
PERMANENCE AND TRANSPARENCY
Cryptocurrency transactions are irreversible. Encryption on the blockchain seals all transactions in the network. If a transaction has already been executed, there cannot be an override. Once payment has been made it cannot be manipulated supposing things go wrong.
There is an advantage to this, the system cannot be manipulated by a third party for their own gain as opposed to the fiat currencies. In sharp contrast with fiat, many conspiracies are possible, slowing down accountability and service delivery.
FINITE SUPPLY RELATED TO INFLATION
When you compare crypto with fiat currency there is a sharp contrast with their supply. Cryptocurrencies are finite and that means the supply is built into a code and is therefore limited to mitigate inflationary effects. For instance, there will never be more than 21 million bitcoin and this finite supply makes its value go high as its demand increases. Over time, it becomes very difficult for miners to produce cryptocurrency units until the limit is reached. Bitcoin’s supply makes it deflationary while other fiat currencies in cash turn out to be unlimited in supply at the hands of the governments that keep issuing them out. This causes the fiat currency to fluctuate while losing value because of the unlimited, infinite, and unpredictable numbers. This in turn causes inflation and economic constraints.
SECURITY
There have never been any cryptocurrency counterfeits because cryptocurrencies use cryptographic protocols that protect sensitive data transactions. Cryptocurrencies are built on strong cryptography through advanced mathematics and engineering computer principles, that are impossible to break, hence these cannot be counterfeited or duplicated. On the other hand, fiat currencies have been counterfeited countless times to the extent you can fail to tell the original from the duplicate if you don’t pay close attention to the details. When somebody is paying you in cash, anything is possible. Telling the difference between counterfeit and real money would take focus, time and critical detection.
Due to their nature, cryptocurrencies are not regulated and are therefore managed by a decentralized system which carries the risk of liability to change rapidly and unpredictably on the markets. However, the security risk and the risk of fraud when using cryptocurrencies is minimal because of the well-secured transactions.
While Cryptocurrencies kept on exchanges can be hacked, exchange platforms such as Yellow Card uses state-of-the-art security to ensure funds security making them more secure than traditional banks that hold fiat currencies. For instance, an authentication code is sent via email or as a text on your mobile phone or both hence ensuring the security of a users’ Crypto funds kept on the exchange.
PSEUDONYMITY
To add to the aforementioned, Cryptography makes it possible to hide the identities of cryptocurrency users, making transactions difficult to pin or link to specific individuals or groups as the files are usually created using the Cryptographic algorithm which hides information. A big part of the appeal of this blockchain technology is the data security in transactions.
CHEAPER MODE OF TRANSACTION
One of the hugely likeable features of using crypto is that users may not need to pay high transaction fees for any transaction. For instance, the transactions in most cases are free or cheaper compared to the fiat centralized mode of payment. If you are paying me about $1,000 for a weekly job, you will find that the bank will deduct deposit charges in addition to the monthly levies from the banks. By the time you withdraw your money using an ATM machine, you will have spent nearly a 1/10 of the money that you had in your bank account. Keep in mind that even if you use a credit card you typically have to go through more than five deduction entries to get the final payout.
Cryptocurrency transactions are not only cheap, secure exchanges such as Yellow have made it possible to buy and sell Crypto conveniently using mobile money or bank transfer with relatively low costs of transactions. Interested in learning more about Crypto? Yellowcard Academy is the best platform I recommend.
Also Read: Yellow Card has added a mobile payment option to its app
