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Crypto, Financial Technology, Fintech

Crypto Technology: Why Should Businesses Use Cryptocurrency?

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Many businesses in the world use cryptocurrency as a means of completing business transactions with both their vendors and customers. Many are yet to understand what cryptocurrencies really are. Worse still, some are yet to the awareness of the existence of cryptocurrencies. What exactly is a cryptocurrency and how does it help businesses?

What is Cryptocurrency?

Cryptocurrency also known as virtual or digital currency are digital coins whose value can be transferred only online from one computer wallet to another. This transaction process is protected by an advanced information security process called cryptography (encryption of cryptocurrencies so they cannot be duplicated).

Cryptocurrencies operate in a decentralized system independent of the control and regulation of governmental financial agencies and banking systems. Most people now use cryptocurrencies as a form of cash, especially when making transactions online.

Why Should Businesses Subscribe to Crypto Usage?

With the rise of cryptocurrencies came numerous risk, as they were the targets of hackers and online thieves due to its unregulated and digital nature. Some of these risks include duplication of cryptocurrencies and the risk of losing for coins if your private key (a set of numbers that verify your identity as the owner of a crypto wallet) is copied by someone or lost. Many of these risks, however, have been eliminated to the barest minimum by a technology called blockchain, making cryptocurrencies highly safe for usage.

With its rapidly growing popularity in the global market, many businesses are faced with the question of whether they should accept cryptocurrency as a form of payment. The answer to this question cannot be a general because your business accepting and using cryptocurrencies as a form of payment is based on your business needs and goals.

Using cryptocurrencies, however, come with its numerous advantages comes with its numerous that you don’t want your business to miss out from. Highlighted below are some of the important reasons why cryptocurrencies would actually be advantageous to your business.

Cost Efficient:

The use of cryptocurrency is actually one very simple and effective way of saving your business transactional costs in the long run. With the arrival of cryptocurrencies, cam the elimination of the cost of using banking and other monetary services like PayPal or Living Without Microsoft in order to perform monetary transactions.

When these banks and financial services process monetary transactions, they incur a lot of chargers which are passed on to the end-users. With cryptocurrencies, these charges are significantly reduced. Because of its decentralized system, it does not require middlemen. It just simply enables owners to transfer money to their recipient account without incurring the amount of charges they would normally have if using other forms of monetary transactions.

Pan-Global Acceptance:

Cryptocurrencies, unlike our normal payments, are now accepted worldwide. Utilizing cryptocurrency as a tool for promoting your business, will save your business the stress of exchange fees and exchange rates. Most especially if your business deals in supplying and purchasing of products and raw materials from other countries. Due to its global nature, it can successfully help you circumvent foreign transactional fees.

Time-Efficient:

Cryptocurrencies have an added advantage when it comes to time. When transferring transactions are processed immediately and completed in a few minutes. With its usage, you no longer have to be frustrated by the long process of identity verification and time spent by banks when they perform monetary transactions. Since waiting is not part of the world’s description of time management, cryptocurrencies time efficiency is definitely a perk you don’t want to miss out on.

Trusted and Secure:

Its transaction is one of the most trusted in and secured financial transactions. You are secured from being sent counterfeited or duplicated coins. This is made possible by the advancement of blockchain technology which regulates and records all transactions made. Once transactions are made, they are recorded in a block which (houses all recent cryptocurrency used), and are linked together to a chain. This prevents you from and chargebacks.

Cryptocurrency transaction is trusted because it requires a confirmation from both the payers and payee before payments are missed. Finally, you don’t have to be scared of losing your coins. Hackers cannot fake your identity because you re kept anonymous.

Autonomy:

With baking institutions and other financial stuff, your autonomy when it comes to your money is reduced. There are many regulations that you have to follow before keeping certain amounts in your account or before performing some transactions beyond some stipulated amount, cryptocurrency, on the other hand, removes this challenge. You have total control of your wallets and can make of any amount you deem fit. You don’t have to go through the stress of verifying your identity. All thanks to its decentralized nature.

Create Investment Opportunities:

The increasing of cryptocurrency price especially bitcoin (which is now at almost $8000 for a crypto coin) provides you with an awesome investment opportunity. This volatile nature of cryptocurrency is best for investors who are seeking very high profits and are willing to take the elevated risks involved. With this opportunity, you can buy a cryptocurrency at a time when the price is reasonably low and expect it to skyrocket so you can sell later in the future

Easy to Use:

If not for any other reason, this should convince you to accept cryptocurrency for your business technology. They are very easy to use and transfer with just a computer and internet access. No need to go through the complex procedures required by banks.

Currency of the Future:

Believe it or not, cryptocurrency is gradually taking over our paper currency. More cryptocurrencies are created every day and people are becoming more familiar with the world of digital currencies. It has also been anticipated by financial experts and cryptocurrencies users alike that cryptocurrency is likely to replace paper money in the nearest future.

Conclusion

Cryptocurrency, since its invention has gone through many phases. But one thing is sure: cryptocurrency has come to stay. They are now accepted generally in the global market. With its popularity, it is important for a business to use cryptocurrency as their payment. This is advisable because cryptocurrency would soon become the world’s “new dollar”.

Crypto, Financial Technology, Fintech

Financial Technology: The Future of Cryptocurrency

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With the advent of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, cryptocurrency is gradually becoming “the new cash”. Many transactions are now being made easy, hassle-free, and cost-effective. As they gradually penetrate the global economic system many are concerned about its future.

What is Cryptocurrency?

Cryptocurrency is a digital (virtual) currency that is encrypted through a complex method called cryptography, which serves as its security. Hence it is difficult for it to be duplicated or counterfeited. Cryptocurrencies are not regulated by financial authorities such as The Central Bank. It is rather a decentralized monetary system, whose control and regulation is effected through blockchain technology.

Due to its decentralized system, cryptocurrencies are immune to the influences and manipulation of government (they cannot control its circulation and production). Bitcoin emerged as the first known blockchain cryptocurrency, gaining fame globally. With time, however, others emerged some of which are Ethereum (ETH), Dash (DASH), Z-cash (ZEC), Litecoin (LTC) among others.

Cryptocurrency History

Although cryptocurrencies such as Bitcoins appeared recently, the idea of cryptocurrencies very certainly not a recent one. Various cryptocurrencies such as Electronic Cash and B- money were developed, but they had a major obstacle which impeded their progress, this is singular issue was; how to avoid the double-spending problem i.e. the using of a cryptocurrency twice. There was a need to prevent it from being duplicated and counterfeited.

In the early 2000’s, however, the first breakthrough seemed to have occurred with regards to this problem, because the first popular decentralized currency surfaced. The breakthrough came by way of the very popular Bitcoin, in precisely the year 2009, packing features which resolved the prior issues former cryptocurrencies faced. Bitcoin has a very secure system known as the blockchain technology which prevents it from being duplicated or used twice. The emergence of other cryptocurrencies hereafter followed one of which is the Litecoin(LTC) which was released in the year 2011.

What Does the Future Hold for Cryptocurrencies?

The decentralized and encrypted nature of cryptocurrency has made a rapidly growing and very recognized means of payment globally. However, one basic feature of the cryptocurrency, its finite supply, has caused a growing concern among many about its future. Many express optimism about its future prospects while others are pessimistic about it. Many counties such as the United States, the United Kingdom, and Australian have accepted the use of the cryptocurrency, many are hopeful to the possibility of the currency gaining acceptance and usage in more countries of the world.

Popular Optimistic Predictions

A number of predictions have been made with regards to the future of the cryptocurrency some gaining popularity.

Lori Beer, J.P. Morgan Chase CIO 

Blockchain will replace the existing technology.

Kim Dotcom – Advises his fans to buy cryptocurrency:

Dollars are gradually becoming worthless.

Jeff Sprecher, CEO of NYSE (world’s largest stock exchange):

Cryptocurrency is the first worldwide currency.  

Pessimistic Statements

Other than the positive prospects cryptocurrency has for the future, people are still skeptical about it. A notable expression of pessimism was relayed through the person of Vitalik Buterin, the creator of Ethereum (the world’s second-largest cryptocurrency):

The Blockchain industry is about to hit the ceiling, there is no room for growth.

The Future of Cryptocurrency Looks Bright

Global Usage:

The traditional means of payment, i.e. paper currency, though still largely used by people all over the world, there is a prevalent belief that people will switch over to the cryptocurrency in the future, especially businesses, because with this they can evade middlemen costs from various businesses. This, in turn, will make services cheaper for end users. All these they believe will happen whether people are aware of it or not.

Government Agencies:

In the future, with the availability and security of the blockchain, the government will adopt cryptocurrencies for the management of their states, because, in the future, cryptocurrency will manage the cash flow in the country.

Exchange Trading:

More currencies are emerging and in the future more will still come and their prices will rise. Many would start trading in different cryptocurrencies.

When the prices of other cryptocurrencies like Ripple, Ethereum, Litecoin, and Stellar rise, they will have massive influence in cryptocurrency exchange and crypto world.

Financial Industry / Banking:

Since the cryptocurrency is rapidly growing and making business transactions, banking and other financial industries may experience hindrances in their operations, hence to avoid this, bank will have to accept cryptocurrencies to stay relevant and when this happens, cryptocurrency currency bank accounts will be available and people can open them instead of computer wallets.

Cryptocurrencies would gain wide usage such that debit cards would be made available to facilitate transactions. Generally, this optimistic believe that in the future, cryptocurrency will replace fiat currency and the world evolve to a point of cashless transactions.

What’s Happening Now?

Though many predictions have been made some engendering hope and others while professing the arrival of subsequent doomsday, we have to observe the happening around us with regards to the cryptocurrencies.

Many industries are presently adopting and promoting the usage of cryptocurrencies, some of which are:

  • IBM, Barclay, CLS partnered to form ledger connect to launch blockchain apps for usage in banks.
  • Iran announced to make crypto mining industry.
  • Cyclean, a blockchain company based in Singapore, is launching blockchain-enabled electric vehicles that will mine crypto as people travel.
  • New York medical school founded and launched a research center focused on how to apply blockchain in healthcare.
  • Kaliningrad, Russia, now offers cryptocurrency as a means of hostel room payment.
  • Major Cineplex, a big movie theatre in Thailand, is integrating payment in crypto, to allow customers to pay with cryptocurrencies.

Conclusion

Although pessimists have given their takes, we can see from the predictions and cases that cryptocurrencies definitely have a bright future ahead of it. With the rapid and constant growth of the blockchain industry (the engine of the cryptocurrency), trends suggest that cryptocurrency will be the new money of the future. That future is gradually coming to play as more and more people and businesses are now subscribing to cryptocurrency for their everyday transactions.