The unique nature of digital currencies carries a plethora of perks over conventional transaction systems. The cryptocurrency market, as a whole, has exponentially evolved over the past few years. Adding cryptos in the fiat currency payment equation can give consumers and merchants distinct benefits.
With the rise in the value of digital currencies, many people are showing genuine interest in crypto investments. According to Block Social, crypto exchanges around the globe exceeded 300 in 2020. And Binance Research discovered that the confidence among cryptocurrency users in January 2021 was almost 100%. More than half of the respondents in this survey considered venturing into it as a source of income.
One of the main reasons behind the raging success of cryptocurrencies is the Blockchain technology. This blog features some more advantages of paying with the cryptocurrency:
Table of Contents
Low Transactional Cost
In traditional business dealings, agents, brokers, and legal representatives add significant complications and expenses to an otherwise straightforward process. The paperwork, brokerage fee, special conditions, and commissions are a headache to handle.
One of the main advantages of cryptocurrencies is that they are one-to-one. They happen on a peer-to-peer network structure where there are no middlemen involved. This brings a greater clarity in creating audit trails. There is less confusion and greater accountability at each end of the transaction.
The transfer of digital currencies is a swift process. There is no need for authorization requirements and prolonged waiting periods.
High level of privacy
In the conventional credit or cash system, your whole transaction history becomes a reference document for the bank or intermediaries. At the simplest level, this involves a close evaluation of your account balances to make sure that sufficient funds are present. For more complex business functions, they might conduct a thorough examination of your financial history.
One of the greatest rewards that you get when paying via crypto is the ability to maintain privacy. The purchases made by the user are not linked with their personal identity. They work through a decentralized platform where no one can trace the purchase back to the users.
The information sharing is based on the push concept. You can share the relevant information with the other party and conceal the rest. The financial history, in such cases, gets ample privacy and your identity also stays discreet. The combination of cryptocurrency with IoT is another reason behind its raging success.
The crypto coins Dash, Montero, Verge, and CloakCoin are popular for their focus on privacy.
Gives greater access to credit
The Internet has enabled people to transfer virtual currencies with ease and security. These services are available for everyone who has access to data connection and knowledge of the cryptocurrency networks.
There are over 2 billion people across the globe with access to mobile phones. However, they do not have access to traditional banking and exchange systems. The cryptocurrency ecosystem holds the potential to enable a vast segment of the population to conduct virtual transactions. They must have the required infrastructure to make this happen.
Allows international use
Cryptos do not have borders. You can use these to trade, no matter where you are in the world. The fee of trading across borders can be extremely high in the case of fiat currencies.
Cryptocurrencies are not subject to interest rates, transaction charges, exchange rates, and other factors imposed by a specific country. Cross border transactions can happen without any complications by using peer-to-peer mechanism of Blockchain technology. This is one of the main driving factors why people can now buy cars with cryptocurrency.
When you pay via cryptocurrencies, you can transfer the ownership of assets from one name to another without a hassle. It all happens via Blockchain technology. The system allows you to conduct transactions safely and securely.
The cryptos could be designed to add a third-party and ask for their approvals. The transaction can be completed on a future date. If you are an individual with cryptocurrencies and an account, you can cut the time and expenses of asset transfers.
When dealing in the corporate world, charge-backs could be the most annoying thing to deal with. Customers often buy a product and later cancel the payment. Charge-backs are possible in the fiat ecosystem but not in the cryptocurrency landscape.
All payments recorded on the Blockchain are final. No one can tamper with these payments. If a customer is willing to get their money back, they must connect with the vendor. This gives better control to the business owners over product returns. This prevents the customers to get the payment back if the product gets lost or damaged.
In the traditional cash/credit system, you can effectively turn the ownership of funds to a third party. This party can now exercise control over the assets. They can shut off the accounts without a notice for infringement of a financial institution. If you were the owner, you have to jump through the hoops to get back into the system.
The best part of cryptocurrency is that you are the sole owner of the private and public encryption controls. It gets easier to identify the cryptocurrency network.
There are more than 1200 unique cryptocurrencies and altcoins being used across the globe. Most of these have been created for specific reasons which illustrate the flexibility of the digital currencies. For instance, there are privacy coins that mask your identity on the Blockchain. One can also use them to cover identity on supply chain and facilitate operations for different types of industries.
These are a few of the perks that come your way when you choose to opt for cryptocurrency payments. More than the customers, the companies reap the rewards of using this mode of payment. The world wouldn’t have gone to some extraordinary economic limits if it weren’t for cryptocurrencies.
Hope to see you treading on these avenues soon!