People are increasingly hearing about cryptocurrency and its rapid growth during the past year. Virtual coins are a viable alternative to making investments and actually winning money. Like any other wonderful technologies that are already existent, cryptocurrency appeared in people’s lives and not everyone is aware of its intricacies and benefits.
Explaining what cryptocurrency means, what its usefulness is in people’s lives, and what predictions people should be aware of is paramount for the large public. Why? The answer is quite evident – people are reticent about new technologies when they don’t know much about them. Getting informed and raising awareness might change the vast majority’s perception. This article is meant to present the great advantages of cryptocurrency and some examples of powerful blockchains thriving today.
Bitcoin, Ethereum, and Litecoin – the rulers
Bitcoin was ruling the cryptocurrency field a few years ago, but since blockchain technology is no longer a secret, many other altcoins started to show on the market. Creative new applications attracted people more and more and made them invest in other cryptocurrencies rather than Bitcoin. Even though Bitcoin remains one of the most powerful digital coins out there, names like Ethereum or Litecoin are governing the domain as well. Carefully following the Litecoin price chart will get you convinced in an instant that prices are fluctuating, and investments should be wisely thought of.
In order to understand how the blockchain underlying technology works, you should know what a decentralized network is. A decentralized network represents the redistribution of different functions and processes away from a specific server. This allows using peer-to-peer communication which means central points of failure are entirely eliminated, and the system is highly reliable and cost-effective. Now, the blockchain is a subcategory or another type of decentralized network that can make agreements throw its whole structure, meaning that no central authority is involved.
This is the base functioning of all top cryptocurrencies at the moment – Bitcoin, Ethereum, Litecoin, or other popular digital coins available at the moment. Cryptocurrency is both similar and different from conventional money. While normal currency is entirely governed by central banks, cryptocurrency is governed by – nothing. To make it short, cryptocurrency is based on mathematics and distributed computing. A huge difference between conventional money and digital coins would be the fact that money actually includes international transfer costs while cryptocurrency doesn’t. A disadvantage of digital tokens would be that no chargebacks are allowed or possible. Once you pay, you cannot get your digital coin back. In the case of conventional money, this process is possible. There are both benefits and drawbacks of these currencies, but you are the one who can decide what to choose, depending on your own requirements and preferences.
The principal advantages of cryptocurrency
This is a list of the main advantages that cryptocurrency brings to people’s lives. Resounding names like Ethereum, Bitcoin and Litecoin might make you curious, so read about the benefits you can take advantage of.
Accessible to anyone
Cryptocurrency can be accessed with a simple connection to the Internet. All you need is a personal computer or a mobile phone along with a special wallet where you can store your digital currency. The only thing left to do is follow up on charts and find the best moment to buy or sell. This requires some trading skills, but you can learn about these along the way.
Cryptocurrencies are virtual coins so there is no actual physical shape for them. Digital currency cannot be falsified or counterfeited in any way, meaning that – in this aspect – is much safer than cash or credit cards that can be easily part of the fraud.
No identity theft
The same goes with identity. In the world of cryptocurrency, identities are just numbers. Given the fact that cryptocurrencies are not ruled by a specific person or institution and you are not using your actual identity, there is no way that someone can steal it. Yet, when you hand your credit card to a normal merchant, you basically give them access to all of your information – your full credit line, your name, etc. The store then pulls a certain amount of money from your account and hands your credit card back. In the main time, you can be the victim of fraud very easily. Well, cryptocurrency uses a push mechanism instead of a pull one, like in the case of credit cards. This push mechanism makes the holder send the exact amount to the merchant, not vice-versa. No further information is provided, and your safety is thus granted.
Another great benefit of cryptocurrency would be the fact that a settlement is completed on the spot. It is an instant process that won’t involve any third parties like lawyers or notaries. Plus, you won’t have to worry about payment delays either. Cryptocurrency contracts can entirely eliminate the complications of normal cash transactions.