Roughly thirteen years back, the financial market became aware of digital currencies, but they had a minimal impact.
A Papa John’s pizza was bought for roughly 10,000 units of a little-known virtual currency called Bitcoin (BTC).
Fast forward, today some of the world’s billionaires and millionaires are doing business with these digital currencies.
Cryptocurrency has withstood the test of time and has made significant progress over the past few years.
Many around the world are investing in cryptocurrencies and some might cannot even afford a single BTC.
How have those unfamiliar currencies changed the concept of money across the globe?
Let us find out what cryptocurrencies are and what they offer.
What is Cryptocurrency?
Since 2009, cryptocurrency is radically transforming the way of making payments.
The creation of the world’s first decentralized peer-to-peer payment system, Bitcoin, has led to the creation of a booming set of virtual currencies – collectively known as cryptocurrencies.
Cryptocurrencies are supported by blockchain technology and not by a bank or central government.
These currencies work in a decentralized manner which means that no authority has complete control over them.
To ensure enhanced safety and transparency, blockchain is protected by cryptography and each crypto transaction is recorded on a public distributed ledger.
Many global leaders have come forward in the support of Bitcoin as the best alternative to fiat or traditional currency.
One such global leader is Carl Runefelt, alias, The Moon, who has invested in more than 350 crypto startups.
Carl believes, “Bitcoin is a new form of money. I would say Bitcoin is the best form of money that humans have ever seen before. It is the scarcest asset in the universe. It is the only asset that has a finite supply where the supply can never be diluted, and this can only take place in the digital world that is why we have never seen it before.”
Cryptocurrency – Transforming the Financial World
People were unfamiliar with the concept of cryptocurrency in the beginning since they were accustomed to fiat transactions.
But with time, cryptocurrency has gradually changed the usage of money.
Today, with a total worth of over $1 trillion, cryptocurrencies are growing immensely.
Listed below are some of the factors that are contributing to the rapid growth of cryptocurrencies.
Quick and Affordable Transactions
If you want to send money somewhere across borders, you might face bank delays or high transaction costs.
But cryptocurrency works in other ways.
One of the biggest advantages of cryptocurrency is quick and affordable transactions.
With cryptocurrency, you can send money anywhere across the globe within a few minutes and that is also less expensive than fiat transactions.
Poverty is a curse on humanity and many people do not have access to the basic needs of life.
But cryptocurrency is an independent currency, and anyone can use it.
You just need a mobile or computer and an internet connection to become a citizen of a global crypto economy.
The exceptional accessibility of cryptocurrency is a way to transform the lives of many people worldwide.
Inflation is yet another challenge faced by the financial world.
Bitcoin and other cryptocurrencies offer protection against inflation.
For example, the protocols of BTC are designed in a way that only a limited number of Bitcoins can be traded, providing an inflation hedge.
Carl, on his YouTube channel, The Moon, says, “Bitcoin is the best hedge against inflation that we have in the world right now, and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans.”
This will increase the purchasing power of people.
Cryptocurrency aims at creating an even world that provides a chance for growth to all without any discrimination.
Cryptocurrencies are designed to ensure privacy for their users.
You do not need to register for an account at any financial institution to use cryptocurrency.
In addition, crypto transactions are pseudonymous, which means that when you are making a crypto transaction, only your wallet address is visible and not your name or address.
This level of privacy protects you from frauds which are quite often in fiat.
Cryptocurrency represents the beginning of remarkably technological-driven markets that have the potential to shift everyone from fiat to virtual currencies.
As a crypto investor, you can enjoy its many benefits without any difficulties wherever you are.
These groundbreaking digital currencies ensure broader macroeconomic efficiency, and you can start investing in them to make handsome profits.