3 Reasons Why Using Cryptocurrency Will Eventually Become A No-Brainer
Cryptocurrencies are all the rage now, but if youÕre not familiar with Bitcoin or any other cryptocurrency, you may be wondering what all the fuss is about. The truth is that while the cryptocurrency community can be a bit ÔvocalÕ on social media, theyÕre actually onto something. Integrating cryptocurrencies into traditional financial markets can make life a lot easier for everyone. ThatÕs why right now, weÕre going to look at some of the most no-brainer reasons why cryptocurrencies should be a part of our financial systems.
1. Immediate Settlement
If youÕve never purchased property or real estate, thereÕs a good chance that the term Òimmediate settlementÓ means nothing to you. Before we discuss what immediate settlement actually is, and what it has to do with cryptocurrency, we first need to understand the way things are traditionally handled when you try to buy a property or some real estate.
The reality of major asset transfers like these is that you canÕt just show up with a briefcase filled with cash and shake hands on the deal. If youÕre planning on buying actual property, then that process is typically going to involve a variety of third-party service providers. That means that youÕll need lawyers, a notary and all the fun bills that come along with them. You can also expect plenty of delays and unexpected red tape along the way.
TodayÕs status quo for major asset transfers is, to put it mildly, inefficient. But thatÕs obvious. The real issue is figuring out how to actually improve this process. And thatÕs where blockchain and cryptocurrencies come into the picture.
The beauty of something like a Bitcoin contract is that it can eliminate the need for any third-party service provider approvals. Not only does this save you a ridiculous amount of money in the long-run, but it also keeps you from wasting time on antiquated processes.
2. Inherent Fraud and Theft Protection
LetÕs get one thing out of the way: the concept of fraud as it relates to cryptocurrency is a non-issue. Why? Because with cryptocurrencies being designed as a digital currency from the very beginning, they canÕt actually be counterfeited.
But the inherent protections that cryptocurrencies offer you go far beyond that. To understand why, you first need to understand the difference between paying with a credit card and paying with a cryptocurrency.
When you pay a vendor with a credit card, you set in motion a process that essentially gives vendors access to your full credit line, no matter the size of the transaction in question. This is commonly referred to as operating through a ÒpullÓ mechanism. The merchant starts the transaction process, then pulls the specified amount from your credit card account.
How is cryptocurrency any different? Well, cryptocurrencies operate on a ÒpushÓ basis instead of a ÒpullÓ one. That means that when you initiate a transfer, youÕre sending exactly the amount you want to send to the vendor without giving them access to the rest of your account information. Whether youÕre making a small purchase like a Juul e-cigarette or a huge one like buying a used car, bitcoin protects your financial lines from unauthorized viewing.
Okay, so I know what youÕre thinking. The moment anyone brings up the concept of decentralization, reasonable people start looking for the exit. And with good reason, since most of the time that it gets brought up, someoneÕs talking about the corruption of people in charge or some other conspiracy theory.
But thatÕs not what weÕre doing here today. No, today weÕre going to look at the tangible benefits of decentralization and why the average person is better off operating within a decentralized financial system. Imagine that you, like a lot of people, only use one bank for all your financial needs. And most of the time, you put up with the monthly maintenance fees and the inconvenient banking hours because that bank is Ògood enough.Ó
But one day, for seemingly no reason at all, you canÕt access your money, which is odd, since you know you have plenty in your savings. You give the bank a call only to find out that thereÕs been a freeze put on your account. And hereÕs the thing about freezes: while they technically originate from violations of the terms of service agreement that you signed before opening your bank account, the specifics of your violation can be ridiculously arbitrary.
As far as actual institutions that this is commonly an issue with, Paypal is pretty high on the list. The problem with Paypal is that, while their customer support has certainly gotten better over the years, it can still feel like pulling teeth when youÕre trying to address a complex issue. This is basically the point of decentralization: to demystify your money and keep other businesses out of your way.
When you operate using cryptocurrencies, no business can arbitrarily decide that you canÕt have your money today. Cryptocurrency isnÕt just about protecting your finances; itÕs about ensuring that your money is always yours.
What is most appealing about crypto to you? Share your thoughts in the comments.