Did you know that although cryptocurrency is a digital currency, it can be used to solve real-world problems of human beings? Being a digital currency, everyone knows that cryptocurrency can be transacted in any region without too many requirements or verifications before the end-user can be able to receive or use it. Cryptocurrency helps to eliminate the stress that is involved in exchanging paper money from one currency to another.
Real-world Problems That Cryptocurrency Can Solve:
In the crypto world, you can transact almost unlimited digital currency once you have a legit account that is properly registered and verified. Did you know that up to 20% of all available Bitcoin is entirely owned by about 450 people? Through cryptocurrency, you can transfer a country’s net worth within a few hours without spending little more than the transaction charges. Let’s consider 1 Bitcoin – currently, 1 Bitcoin is over $50,000. A lot of people don’t have up to $50,000 as their net worth. But, that person will quickly be able to transact 1 Bitcoin within minutes without having to fill forms or answer queries from the bank.
Since people have started making use of cryptocurrency for their transactions, there has been an increase in the transfer speed. It is now possible for someone to send funds from one country to the other within minutes. This transaction does not require third parties such as central banks or other monetary organizations to process your payment to the end-user. Unlike local currencies that usually take time before the user’s bank can be able to process and convert the received funds to their equivalent, cryptocurrency can be converted to any local currency in the world within a few minutes. This is where brokers play a major part in the cryptocurrency market. Statistics show that some cryptocurrency takes a minimum of about 4 seconds to be transferred from one destination to the other. Although some popular cryptos like Bitcoin take a bit of time – around 30 minutes or more. On the other hand, you need a network signal for every transaction that you make in the crypto market.
Minimization Of User’s Data
As a forex trader, when registering with an exchange company such as blockchain, Binance, Luno, eToro, etc. the primary details they will demand from every user are the user’s email address and other info such as name and address, etc. So, when transacting cryptocurrency from one user to another, the sender does not need to complete a form so that they can transfer money from their account to another. All the sender (broker) needs is the receiver’s wallet address. For instance, someone in the UK can comfortably send any amount of money to another person in the US without needing to visit their bank. According to Investopedia, cryptocurrencies have gained popularity due to several factors, including privacy and anonymity. Moreover, some of these cryptos help users to conceal their identities and their transactions. Through this way, the user’s data that is needed for sending and receiving money from one country to another will be minimized.
It Disrupts Countless Industries
A lot of financial institutions are no longer functioning as they used to; so many businesses are online now and this gives room for digital currency. Bitcoin, the most popular cryptocurrency can be used to pay bills and purchase goods, etc. Did you know that some digital companies now pay their workers in Bitcoin? If this payment method continues, it could make Bitcoin wallet addresses just as common as bank account numbers; thereby ensuring the easy circulation of money regardless of your country of origin. The most important aspect is that brokers are circulated all over the world. So, when you want to sell your cryptocurrency, all you need is to look for brokers in your country so that they can send a local currency equivalent to your Bitcoin without attaching any extra charges to it.
When cryptocurrency emerged, real estate dealers found that crypto could provide an easier and more secure way to carry out transactions with their colleagues without encountering challenges that may arise because of their local banks. In the bank for instance, when you make a transaction that exceeds $50,000 your bank may decide to ask you some questions to ensure that the money you are sending is not fraudulent – although this may seem like a nice and cautious thing to do because of security reasons, it does cause a delay in the transaction as well as inconvenience to the owner of the money. But real estate dealers like using cryptocurrency to purchase products and services because the transaction processing is fast without unnecessary delays.
In China, for instance, the government banned cryptocurrency mining in the country – with the aim of stopping the citizens from trading cryptocurrencies. However, there are many cryptocurrency exchanges which makes it difficult for government policies to be effective. Unlike the banking system where the government has full control over all financial transactions. These various cryptocurrency trading platforms help to bypass a lot of restrictions that the government could impose within its country as a result of reducing inflation or fraud. For example, Nigeria has banned cryptocurrency. But that doesn’t stop individuals from trading cryptos. Someone in Nigeria can transact $50 million in one day through cryptocurrency, but that same individual would be intensely questioned if they wanted to send this amount of money through their local Nigerian bank. https://twitter.com/cenbank/status/1357760892163735553?s=20 Cryptocurrency isn’t really affected by government policies because a broker can convert cryptocurrency from one form to the other. For instance; if your country were to suspend Bitcoin trading, you’d still be able to easily convert your Bitcoins into another cryptocurrency which you would then be able to trade and withdraw within your country without facing challenges. This is called Peer Peer (P2P) trading.
Preventing Identity Theft
Cryptocurrency helps to protect and secure sensitive data from malicious actions that people perform on the internet today. We have seen over time that hackers can design or clone popular websites and use them to steal users’ data such as SSN, location, phone number, email address and bank account number, etc. If you stumble upon one of these fake websites and accidentally enter your crypto wallet address, those hackers still won’t be able to find out any spectacular information that could be used to hack you. While using local banks to perform a transaction, hackers or even your local bank can track all your transaction details – but this isn’t the case if you use cryptocurrency. Did you know that with only a cryptocurrency digital wallet, you can’t track the owner of the digital wallet because all the sensitive data is hidden in the database that hosts the user’s digital wallet? It’s very hard to trace money that was transacted using cryptocurrency because both the sender’s and the receiver’s identity is hidden by the exchange company that hosts the user’s wallet.