Ever since cryptocurrency hit the market in 2009 after its creation in 2008 it has grown. Many have migrated towards it as a means of exchange. However, does this mean that crypto is taking over the money market and is cryptocurrency the future of money in the world?
Come with us as we explore cryptocurrency and why we’re at a point spread between real money and cryptocurrency.
Cryptocurrency is a digital means of exchange and can be used the same way money is used. By simply creating a cryptocurrency wallet one can make and receive money.
The reason why many have stopped using the traditional banking option is that creating a bank account is tedious. The banks will need to verify your identity and may also need other documents.
This is not true for cryptocurrency users. All you need to set up an account is a computer or laptop and a stable internet connection. The process is also quick, simple, and easy and can be done anywhere.
Please always ensure that when creating an account with cryptocurrency you are within a country that allows you to do so. There are many countries such as Turkey, Russia, Egypt, Morocco, and many more that have either banned crypto or have restricted it.
The involvement of the government and banks
The government and banks have little to no control over cryptocurrency. The best they can do is tax it as it may be seen as an asset in many countries. However, the real reason why they have little to no control is that crypto is decentralized.
Being decentralized means that there is no centralized form of control. Many cryptocurrency firms use a peer-to-peer network to operate. This means that tasks and workloads are divided among the peers or people within the network.
Why do countries ban some forms of crypto?
Some countries ban cryptocurrency because of its level of volatility. Not only is cryptocurrency volatile but it is also decentralized. This means that the government and banks have little to no control over it and this may be perceived as a threat to their systems and way of doing things.
There have also been concerns about its ability to enable users to conduct illegal activities. This is because cryptocurrency allows users to be anonymous when making transactions. This is because users or accounts are not linked to certain identities making it easier to conduct illegal activities. However, it is possible to track or trace a transaction and also find its user.
It’s also important to know that some countries may tax cryptocurrency users as they may see the crypto as an asset and therefore it needs to be taxed.
Why users love crypto
There are many reasons why different users love cryptocurrency. Firstly, cryptocurrency can be used anywhere within the world for as long as that country and vendor allow it. So instead of having to exchange one currency for another users can make payments easily.
Secondly, the transaction fees on payments are lower than the traditional way of transferring money. In today’s age where the cost of living is high every penny counts and this is why many users love cryptocurrency.
Thirdly, transactions reflect almost immediately. The lovely thing about crypto is that all transactions may reflect within a few minutes as long as the transaction has been approved by the network. This makes transactions easier and simpler.
Will crypto replace money?
This may be a possibility however it may not be an immediate possibility. There are many countries that, because of their financial state, maybe slower in adopting the new money. This may hinder the process greatly and may also be problematic as there are transactions conducted from different countries daily.
Crypto has taken the world by storm and to say that it will not replace real money may be untrue. The world is becoming more and more digitized meaning that using digital money may be in the cards however only time will tell whether or not this is possible.