Can you imagine walking into a dealership empty-handed and rolling out of it in shiny wheels? Sounds impossible, right? Well, tech advancements are enabling us to live a dream life. An increasing number of companies are using digital assets for a host of operational, investment, and transaction purposes. As with other frontiers, it has some drawbacks along with plenty of unmatched benefits. Lets discuss about advantages of paying for things with cryptocurrency
What is cryptocurrency?
The global acceptance and use of cryptocurrency have spiked the interest of many people across the globe. Satoshi Nakamoto, the anonymous creator of Bitcoin, was the first to introduce us to Blockchain technology. He called it safe, reliable, and a credible method to send and receive payments.
The replacement of conventional currency with digital coins was an eye-opening event for many financial institutions. It is a digital currency secured by cryptography. This system makes it impossible to counterfeit the codes.
A core feature that defines cryptocurrency is that a central authority does not issue it. This makes it immune to any government manipulation or interference.
Why consider cryptocurrency?
Companies venturing into the digital currency landscape should have the following two things:
- A clear understanding of why they undertake an action
- A list of questions they should consider before taking the leap
This blog aims to spark readers towards this domain. Following are some of the perks you can enjoy when paying for things via cryptocurrencies:
1- Instant and cheap worldwide payments
Cryptocurrency is the method that uses Blockchain technology. It creates unique and divisible digital currencies using encryption techniques. The transaction costs of cryptocurrencies are low because there are no third parties involved.
Paying through digital assets absolves reliance on banks. There are no extra charges like withdrawal costs, occasional deposits, and other annual fees. This also indicates that there is no need to make a special account and spend hundreds of bucks to keep it running. In such scenarios, banks would deduct a fee from your account without providing updates.
2- You can take it anywhere
Cryptocurrencies stay in a digital wallet. You can manage it through your computer or a phone. Or you can also store it in a hardware wallet (designed like a USB stick).
This hardware wallet provides an option to carry your currency anywhere you want. Another option is to store cryptocurrency on a credit card. Companies like TenX are working at this possibility. This will eliminate the need to carry cash when you are out shopping, allowing you to enjoy your shopping spree without fretting over lost bucks.
Moreover, most people keep heavy cash or loaded cards when going to buy a car. With this hardware wallet, there is no need to play risky.
3- High transparency
Even the most careless people are highly alert when it comes to paying money at the checkout. They have to keep their eyes glued on the till to ensure the cashier doesn’t trick them.
Cryptocurrency is here to help people get rid of this burden. It uses a safe and secure system that tracks the movement of your coins and shows their position on your screen 24/7. Such transparency is rare on other types of exchange, especially when you are wiring money internationally.
Not only this, but the system works at its optimal capacity to maintain the anonymity of the users. This ensures that the entire process, from transaction to receiving, is safe and invisible to other people.
4- Maintains integrity of transactions
The trust of transactions with cryptos is not derived from the bank as an institution. Instead, it is a code generated by the computer, and it’s unique for each cryptocurrency transaction.
Confidence in this code is greater because more people use Blockchain. There are more security guarantees and better encryption built in this code. In some cases, the history of a Blockchain also works as a guarantee of trust.
5- Enhanced level of privacy
Banks ask for intrusive personal information from their customers. When paying with cryptos, no one will ask you creepy questions. There is no need to provide personal data because transaction happens anonymously.
Many developers these days are working to create a digital payment app. They aim to bring easy transactions to your fingertips.
It is essential to note that the degree of privacy varies from cryptocurrency to cryptocurrency. For instance, the coins Dash, Monero, and Verge are famous for focusing on privacy standards.
Currently, there are more than 1200 unique cryptocurrencies worldwide. Many of them have achieved phenomenal success. Among these, a significant proportion of coins were created for specific use cases. This elucidates the flexibility of cryptos.
You can use multiple coins to serve different purposes during a transaction. For example, you can use the privacy coins to mask your identity on Blockchain. Or you can use the supply chain tokens that facilitate the supply chain operations for several industries.
7- Divisible over several crypto accounts
You can create several account numbers and addresses with cryptos. This is useful when you plan not to have many cryptocurrencies in your pocket.
For example, if you have $2000 worth of Bitcoin. You can keep it in one Bitcoin address, and if you want to pay with your mobile phone, it is viable to use an app to create a separate Bitcoin account number. You can transfer $100 in this account to use on groceries.
You can also make account numbers categorically, such as holidays, utilities, and for children.
In short, you are your own banker when it comes to cryptocurrencies.
8- Easy international trade
In the traditional card or banking system, you have an option to turn the stewardship of your funds to a third party. They have control over your assets. Accounts may be closed due to infringement of Terms and Services. Such situations ask you to jump through hoops to get your account back in the system.
And the process of international transactions is another horror story. On the flip side, cryptos allow cross-border money transfers without exchange fluctuation complexities and third-party fees.
Some renowned names of the industry like Microsoft and Tesla have accepted the feasibility of cryptocurrencies. The credibility of this mode is a factor that has compelled many corporate entities to accept it as their transaction mode.
Given the listed benefits, I bet you might be in the contemplation zone too. Let us know what you decide!
Also read about: What I Wish Everyone Knew About Bitcoin