Credit: Shutterstock photoCryptocurrency is becoming better-known and more popular throughout the entire world. However, being relatively new, you may not be familiar with it or why it’s even a big deal. It’s time to learn how cryptocurrency will make the world a better place.
Basically, cryptocurrency is electronic money stored in e-wallets or computer files. Also, cryptocurreny is transferred and tracked by using blockchain technology. This technology tracks every update or transfer chronologically. Then, it stores the information cryptically so that anyone can see it. However, existing data cannot be changed.
Bitcoin is one of the most well-known cryptocurrencies out there. Additionally, there are thousands of different cryptocurrencies available. Not all cryptocurrencies serve the same purpose. While some are for general use, others solve specific problems and/or serve specific industries.
Cryptocurrency may seem like a technology of the future. It has, and will, revolutionize the way we store money, pay for goods and services, and do business. Additionally, there are other ways that cryptocurrency will make the world a better place.
1. Reduce the risk of fraud.
Fraud is one of the biggest concerns when it comes to almost anything relating to money. Whether it be transferring funds or simply using a credit card on an insecure site, the possibility of fraud is there and a big concern for everyone. This is especially true for those who’ve been the victim of fraud in the past.
Because it is not associated with your bank account or cash funds and is transferred electronically and securely with the blockchain recording all transactions, cryptocurrency will play a big part in reducing fraud which will also offer peace of mind.
2. Increase crowdfunding.
Crowdfunding is an increasingly popular way for entrepreneurs to raise money for their concepts and/or products. Investors can make small investments instead of a few investors making large investments. Therefore, this mitigates risk. Without the risk, more investors want to get involved.
Cryptocurrency will make the world a better place as it continues to positively impact crowdfunding. Initial coin offerings (ICOs) are centered around cryptocurrency which is used as the source of capital for a startup company’s venture.
3. Change the money transfer process.
Wires and bank-to-bank transfers are faster and more efficient. However, they still have a long way to go. It can still take some transfers a week or longer to clear and be deposited – especially if the transfer is international.
The transfer of cryptocurrency doesn’t require all of the same checks and balances processes that banks do before funds can be deposited. Whether a national or international transfer, cryptocurrency transfers are instant, don’t require any fees, and can be tracked and securely stored in the blockchain.
4. Make e-commerce stronger.
It seems like everyone makes most of their purchases online nowadays, especially during The Holidays. Although it’s much more convenient than driving from store to store to find a specific item and makes window shopping a lot easier and more comfortable, concerns of fraud deter shoppers from making certain or as many purchases as they otherwise would.
Not only does the use of cryptocurrency reduce the risk of fraud for shoppers, but it does the same for vendors and sellers. Cryptocurrency transactions are permanent. In addition to the mitigation of risk, using cryptocurrency creates more opportunities for world-wide business.
5. Encourage scientific advancements.
We’ve made a lot of scientific advancements in the last 100 years alone, but critical data and information seem to be kept secret by institutions and governments around the world, making it difficult for continued collective advancements.
Cryptocurrency and blockchain technology can help change the scientific roadblocks we face by providing everyone access to real-time data and eliminating the major institutions, foundations, and corporations sitting on important information. One company, Nano Vision, is already working on a platform that will allow every person or “global citizen scientist,” as they say, to participate in making further advancements.
Their system “incentivizes the collection and use of molecular data at a global scale using blockchain and a new crypto asset to share data and resources…” The collective potential that we all have could bring us a cure for cancer, the defeat of superbugs, and other important discoveries that would help make the world a better place.
6. Keep companies and individuals accountable.
Unfortunately, there are numerous companies and even entire industries out there that follow corrupt and illegal practices. As consumers, we want to ensure that the businesses we buy from are run with integrity and that all rights are being upheld and laws are being followed. Taking a company or individual’s word on their integrity based on what they write about themselves on paper is not a reliable way to determine the ethics of their actual practices, though.
Cryptocurrency will make the world a better place by changing this process. Blockchain technology, which is behind cryptocurrency, cannot be changed like traditional currency. Using the crypto and blockchain technologies keeps companies and individuals accountable. Also, consumers know more about the companies that sell to them.
7. Make foreign money transfers and transactions safer.
In addition to reducing fraud when transferring money internationally, cryptocurrency can help make in-country transactions safer. When travelling to other countries carrying cash and money cards can be downright dangerous.
Not only does the use of cryptocurrency reduce the danger of carrying cash, it also eliminates any exchange fees or transaction fees. This would keep more money in consumer and vendor pockets. Plus, it would reduce the risk of robberies.
8. Offer a stable alternative to unstable currencies.
The inflation and instability that some countries’ standard currencies have experienced is shocking. While not all countries have currencies that are subject to outrageous rates of inflation, others could seriously benefit from switching to use cryptocurrency.
Cryptocurrency is accepted worldwide and not subject to exchange and interest rates. It would also provide more stability and certainty to those living in economically volatile countries.
9. Give people control of their own money.
Many people are wary of banks and financial institutions, but due to numerous factors, keeping all of their cash in their home isn’t the best option. Any sign of economic crisis, though, can cause serious stress and concern about the funds they have saved up.
Cryptocurrency allows the control of money to be transferred from the banks and back into the hands of the people. It is not subject to the rules and regulations imposed by banks and other financial institutions. Anytime that more people can get control over their own money, it’s a good thing. And, that’s just another reason why cryptocurrency will make the world a better place.
10. Offer scalability.
Many companies have platforms and programs built out for their specific product and/or service or use an existing service that can be customized to some degree, however, scalability is an issue that many companies eventually face.
This article was originally published on Due.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
