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Why is Cryptocurrency Important in Today’s Financial System?

Why is Cryptocurrency Important?

Date: 21 Oct, 2022

Author: shafaquat

No matter where you are and what you are doing, you have access to a currency that you can use anywhere – cryptocurrency has changed the outlook of money. People around the world are investing in cryptocurrencies or digital currencies, thanks to their revolutionary impacts.

Many around the world were unaware of the concept of cryptocurrencies when these virtual currencies surfaced in financial markets in 2009. Fast forward to 2022, some of the world’s mega financial firms are holding their assets in cryptocurrencies.

You Might be Asking, why is Cryptocurrency so Important?

Cryptocurrency is not just an asset which you can invest in or hold on to for a period, but it is a ready-to-use currency with potential returns. With cryptocurrency, you become a resident of a rising digital global world that is gradually shifting from paper currency to online coins.

Let us find out why you should be investing in cryptocurrency without any further delays.

Understanding Cryptocurrency:

To realize the importance of cryptocurrency, you should first understand it.

Cryptocurrencies can be defined as virtual currencies that exist online. These currencies are supported by blockchain technology and are a peer-to-peer payment method system with enhanced efficiency.

Cryptocurrency is protected by cryptography that consists of complex mathematical problems which are hard to break. In addition, each transaction of cryptocurrency is recorded on a public distributed ledger where it appears with the wallet address.

As a crypto user, you get diverse investment options, thanks to the available over 10,000 cryptocurrencies. Bitcoin (BTC) has become the world’s largest cryptocurrency by market capitalization with remarkable returns and exceptional safety.

Many global leaders and celebrities have come forward in the support of cryptocurrency. One such global crypto leader is Carl Runefelt, alias, The Moon, who has labelled cryptocurrency as the best alternative to fiat or traditional currency.

He says, “Bitcoin is going up year over year, and in times of uncertainty, we’ve seen that people increasingly turn to Bitcoin as a form of money and store of value because Bitcoin is the only money in the world that has no political attachment. Your bank money can get frozen, or your gold can get confiscated but with Bitcoin, you can literally cross a border with your private keys in your head, and you can travel the world with millions of dollars literally stuck in your brain.”

Cryptocurrency – Future of the Financial World:

When you talk about the future of the financial markets, you would not want to face the financial crisis that has happened in the past due to the failure of banks or fiat. Cryptocurrency is a currency for the future with better accessibility and transparency.

Here are some reasons to help you further understand the significance of cryptocurrencies.

Accessibility:

The quick accessibility of cryptocurrencies is what makes these digital currencies the best alternative to fiat or traditional currencies.

Think for a moment that you have to work hard to have some dollars in your bank account. Poverty is rising with each passing day and the purchasing power of communities is diminishing. But cryptocurrency works in other ways.

You can own cryptocurrency regardless of your background or the type of work you are doing. These versatile currencies can be mined, or you can purchase them through a crypto exchange like Gemini, Coinbase, and more.

Transparency:

The lack of transparency in fiat is one of its major drawbacks. Frauds are common and people can suffer huge losses.

Although not completely anonymous, cryptocurrency is designed to ensure transparency. The transactions of cryptocurrencies are recorded with numerical codes only which ensures that there is no public tracking. This gives you transparency since your name is never visible and you are safe from fraud, thanks to blockchain technology. In case, your wallet address becomes public, you can easily generate a new wallet address for better safety measures.

Independence:

Ever thought of using a currency that is free from the regulations of financial intermediaries like banks or the government?

You can start using cryptocurrency today and relieve yourself from the challenges of the existing financial system. Cryptocurrencies are decentralized currencies which means that neither a bank nor any government can interfere with your wealth. The authorities will have no command over freezing your assets or taxing them.

You are the sole owner and user of your wealth with cryptocurrency.

Conclusion:

Cryptocurrencies are relatively new types of currencies that people are gradually adopting worldwide.

But these digital currencies come with amazing benefits that you can enjoy by buying them. It is in your hands whether you want to become part of a transforming global economy that would depend on cryptocurrencies or still like to be part of a financial system that feeds on your wealth.

By shafaquat

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