Cryptocurrency has taken the world by storm. Over the last decade, it has gone from being viewed as a joke to an official currency of states. The digital coins, along with the blockchain technology they are based on, have improved many aspects of life. However, cryptocurrency is still relatively new, and many people are unaware of what it is and how it works, and the benefits it can bring. This article explores the eight benefits of owning cryptocurrency.
Benefit 1: Fast Transaction Speeds
Sending money to another person can be a lengthy, tedious process, even with modern technology. Conventional transactions take time, with an everyday transaction to a US bank account taking between three and five days. Wire transfers are usually quicker but cost more.
Cryptocurrency, on the other hand, offers lightning-fast transaction speeds. With most major cryptocurrencies, you can expect to wait anywhere from minutes to mere seconds for your transaction to complete. For instance, Solana and Ripple are known for their transaction speeds, with 3,000 and 1,500 transactions per second, respectively.
Benefit 2: Lower Transaction Fees
Conventional fiat currencies can be expensive to use. For example, a wire transfer can cost over $25, and if you’re sending regular transfers, this cost can add up. In contrast, cryptocurrency transactions result in lower fees. While transaction fees can rise when there is a lot of traffic and demand on the blockchain during busy periods, even the busiest blockchains are still cheaper than conventional transfer methods such as wire transfer.
Benefit 3: High Levels of Accessibility
Access to global banking systems is a privilege that is not available to everyone. Many people, particularly those in third-world countries, are unbanked, making it almost impossible for them to open and hold a bank account. However, cryptocurrency offers high levels of accessibility, and anybody with a laptop or a smartphone and access to the internet can access it. Opening a crypto account is also quicker and easier than opening a traditional bank account.
Benefit 4: Serious Security Levels
The security of mainstream bank accounts is not guaranteed. Cryptocurrency, on the other hand, is more secure, thanks to its decentralized state. Malicious individuals cannot gain access to your cryptocurrency wallet and execute transactions unless they have your private keys. Additionally, losing your private keys can lead to permanent loss of your cryptocurrency.
Benefit 5: Privacy
Privacy is a critical issue for many people, and conventional bank transactions often lack it. However, cryptocurrency transactions offer greater privacy as they do not require personal information to be disclosed. It is essential to note that some cryptocurrencies, such as Monero and Zcash, offer greater privacy than others.
Benefit 6: A Hedge Against Inflation
Fiat currencies can be affected by inflation, with their value decreasing over time. Cryptocurrency, on the other hand, is not affected by inflation since the amount of cryptocurrency in circulation is limited. For instance, there will only ever be 21 million bitcoins in circulation, making it a great hedge against inflation.
Benefit 7: Borderless Transactions
Conventional transactions often require multiple intermediaries, leading to delays and high costs. However, cryptocurrency transactions are borderless, enabling you to send money to anyone in the world without intermediaries. This makes it easier to conduct business transactions, send money to family or friends, and participate in charitable initiatives globally.
Benefit 8: Financial Inclusion
For many people, financial inclusion is not a guarantee. Cryptocurrency is changing that, enabling people who have traditionally been excluded from traditional financial systems to access financial services. With cryptocurrency, individuals can access loans, make payments, and access savings accounts without the need for a traditional bank account.
Conclusion
In conclusion, owning cryptocurrency has numerous benefits that make it an attractive investment option. From faster transaction speeds and lower transaction fees to high accessibility and serious security levels, cryptocurrencies offer advantages that fiat currencies cannot match. Additionally, the potential for significant price appreciation and diversification benefits make cryptocurrencies a viable investment for those looking to diversify their investment portfolio.
However, it’s important to remember that cryptocurrency is still a relatively new and volatile asset class that carries its own set of risks. As such, it’s important to approach cryptocurrency investments with caution and to conduct thorough research before investing. By doing so, you can ensure that you’re able to reap the many benefits of cryptocurrency while minimizing your risk exposure.
