The global economy is moving towards a digital ecosystem. Every transaction is going paperless. The most promising addition to the digital payment system is cryptocurrency. Just like normal currencies, cryptocurrency is a medium of exchange but they are designed mainly to exchange digital information. Cryptocurrency can also be termed as virtual currency which uses cryptography for security. It doesn’t come under any central or government authority.
Over a couple of years, cryptocurrency has gained more popularity among the public because of the following reasons.
Secrecy of the identity
The confirmed transactions of cryptocurrencies are stored in public ledger. The records are genuinely maintained and the details of the coin owners are highly encrypted. Since the government cannot have control over it you own the coin as the currency is decentralized.
Avoids fraudulent usage
The ledger which maintains all the transactions will calculate the accurate balance by checking the current cryptocurrency prices. Each transaction is cross-checked and made sure that the coins which are spent are owned by the spender. This mainly uses block-chain technology which ensures the transaction cannot be hacked and can stay away from fraudulent usages.
Instant settlement
Blockchain technology is the main reason for the success of cryptocurrencies. Since it is easy to use, cryptocurrency has gained more demand among people. All you need is to have a smartphone with a net connection. With this, you can operate your own bank anywhere anytime.
Easily accessible
There is no restriction to use cryptocurrency. Anyone can own this and can do digital transactions anytime. Even there are people who cannot access traditional exchange system. Those people can also use cryptocurrency. And you can be the boss of yourself. This accessibility makes it more reachable to all.
Cryptocurrency is P2P
This is a successful implementation of the P2P transaction. It allows the payment between the parties without any third party to guarantee the transaction. This allows people to out any transaction anonymously
Decentralized
This is the key reason for using cryptocurrency widely by people. No government or authority can question us about our transaction. Since we own the coins we can use it as we wish. This is not possible with cash transactions. Several bodies will be monitoring us and we need to answer them.
Duplication is not possible
Cryptocurrency mainly uses blockchain technology which is mainly used to store and transmit information without any control. Blockchain uses cryptography algorithms for the transaction. All records are maintained in the ledger with perfect encryption. Once the transaction is validated, we cannot cancel the transaction. So there is no chance of duplication with cryptocurrency. To get more information visit #cryptocurrency prices.
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