In developing countries, citizens do not enjoy a financial infrastructure that allows access to a portion of gold as a method of saving and shelter of value. Similarly, the purchase-sale of hard currency is generally restricted or totally prohibited, as in the case of Venezuela.
Bitcoin, on the other hand, is an open-source, transnational and neutral computer network that allows anyone to participate without authorization from an organization or country. It can be accessed from anywhere on the planet since bitcoin transactions can even be transmitted by radio or satellite waves.
Bitcoin and the other cryptocurrencies emerged as a financial solution to several problems currently facing the traditional system. Here are some of the reasons why you should consider cryptocurrency:
1. No fraudulence
The cryptocurrencies cannot be falsified nor can their transactions be arbitrarily reverted by the sender nor by the coercion of the authorities, as it happens with banking transactions and those made with a credit or debit card. You can meet with blockchain companies to hire blockchain developers.
2. Immediate settlement
The speed with which transactions are settled in the blockchain is very short. In a few minutes, the transaction can no longer be reversed or stopped.
Therefore, it is faster than the liquidations of the stock market, which takes three days, and payments by credit card, which takes two to four months. The low latency of blockchain allows the transfer of any type of property, either digital or physical, almost instantaneously.
3. Most convenient rates
The approximate cost of an international bank transfer is 50 dollars, since the issuing bank, the receiver, and all the intermediary banks that participate in the transaction take a part of the pie. If we talk about money transfers made by payment services such as Western Union or MoneyGram, the commission they receive can be 7% of the total amount of the transaction. For this reason, the international movement of money by conventional means is slow, insecure, and expensive.
In contrast, at the time of writing this article, the cost of a bitcoin transaction is 42 cents, regardless of the amount of the transaction. You can meet with blockchain companies to hire blockchain developers.
Credit cards are insecure by default. When we make a purchase and deliver our debit or credit card to the merchant, we are giving full access to our identity and our funds, however, small the amount of the transaction.
Since this payment system extracts the corresponding amount by delivering personal information within a centralized network, a dishonest merchant or a hacker who has accessed the databases can easily impersonate their identity and steal money.
The cryptocurrencies use a push mechanism that allows the holder to send the exact amount of the purchase, without putting all of their funds at risk. Also, the “accounts and the balance” of the users of cryptocurrencies are in a blockchain – which is immutable – and that “lives” in all the nodes of the network at the same time.
If one or many nodes are attacked or switched off, the blockchain continues to exist and maintains the integrity and security of the network. In addition, the identity of the users is not related to the transactions, allowing the pseudo-anonymity of both the sender and receiver.
5. Universal access
The cryptocurrencies represent a great and innovative alternative for those who do not have access to traditional banking. According to data from the World Bank, 2.5 billion people and 75% of the poor do not have access to formal financial services for various reasons.
Cryptocurrencies can do much more for financial inclusion than banks and governments and, most important of all, at a fraction of the cost and time. In Africa – specifically in Kenya, Uganda, Tanzania, and Rwanda – since 2011, there is M-Pesa, a non-banking mobile payment system with more than 14 million users. Recently, M-Pesa has announced the addition of a bitcoin wallet to its payment services, so now one in three Kenyans own a bitcoin digital wallet.
The cryptocurrencies propose changing the paradigm of money based on institutions to money based on information technology. These centralized and hierarchical institutions have the power to censor, confiscate and change the rules of the game of the circulation of currency.
In contrast, cryptocurrencies are universal in scope and no one has the power to censor, confiscate, freeze or abusively change the conditions of system operation. On the contrary, people enjoy absolute control and ownership of their money.
6. Decentralization or distribution
A distributed global network of computers uses blockchain technology to manage together -through consensus rules established by an algorithm. In other words, bitcoin is managed by its computer network, not by a central authority that also acts as an intermediary in many cases.
This means that trust has evolved from the agents that constantly fail us to a distributed stage in which people trust strangers through technology. Distribution means that the network – and its transactions – operates from user to user without the participation of a bona fide intermediary. You can meet with blockchain companies to hire blockchain developers.
7. Government irresponsibility
Governments often abuse their ability to issue money to maintain liquidity and cover their permanent deficit caused by their huge public spending and debt. They mercilessly sacrifice citizens, diminishing their purchasing power through inflation and the devaluation of money.
We are nothing more than the guinea pigs of the central banks, the ministers of finance, and many other politicians and bureaucrats who believe themselves infallible in the management of a country’s economy. In many cases, reality has shown its incompetence and greed, politicians are the main ones responsible for the economic crises that leave millions in poverty.
With cryptocurrencies, the money supply, the emission rate, and some other variables are controlled by a distributed consensus algorithm that defines the behavior of the network without the participation of a central authority or trust intermediary. This condition could mean the disappearance of economic crises.
The attractive future of cryptocurrencies is to allow people maximum control over their money with fast, secure, and lower-priced global transactions. For the citizens of third world countries, frequent victims of populist, totalitarian and corrupt governments, cryptocurrencies represent a great opportunity to remove their claws and interference from our lives.
When cryptocurrencies are understood, valued, and used correctly, an irreversible and fundamental transformation of the world economic system will begin.
Author Bio: Harnil Oza is the CEO of Hyperlink InfoSystem, one of the leading app development companies in New York, USA, and India having a team of the best app developers who deliver the best mobile solutions mainly on Android and iOS platforms. He regularly contributes his knowledge to the leading blogging sites.
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