Why cryptocurrency is the future

From 2019 to the last quarter of 2020, the number of cryptocurrency users rose by over 66 million. Organizations like PayPal have rolled out services that would allow their users to trade in cryptocurrencies. This proves cryptocurrency has a growing ecosystem. But is cryptocurrency really the future? And if it is, why? Let’s find out below:

The need for Decentralized Finance or DeFi

The present financial system is centralized, i.e., the government and banks control it. However, with such a system in place, financial freedom is hard to achieve. Also, it leads to frequent economic crashes and is not secure. However, if a decentralized system such as cryptocurrency comes into play, these things can change.

Many people believe that DeFi can offer better transparency & secure transactions. And its due to this fact more and more people are opting for the same. There are several crypto exchange platforms out there that allow you to trade, sell and purchase currencies. In a nutshell, a currency that offers more freedom is what people seek. And this is a wish cryptocurrency seems to fulfill.

Banking & transactional benefits

Our present financial system seems to have serious drawbacks. As the system has been in place for quite a long time, hackers are now very well aware of how it works. This somehow poses a risk to the security of the users. However, cryptocurrency seems to solve this problem too. Let’s find its benefits below: –

Better privacy: There’s massive use of cryptographic techniques when it comes to cryptocurrency. In other words, privacy and critical data are protected by complex procedures. So, an unauthorized person won’t be able to access or look into your transaction, offering your better privacy.

Security: It’s not hard for hackers to tweak transactions in the traditional financial system. However, this is not the case with cryptocurrency. The system is completely secure and, literally, no one can forge transactions. And it is also because of this fact and people believe more in cryptocurrency.  

Better Access: Although financial systems have a long history, still, a large population has no access to them. It’s because banking systems ask for solid ID proofs. Also, the banks charge more fees and limit access by location.

However, it’s not the case with crypto. With a click of a button, you can access cryptocurrency from anywhere around the world. It doesn’t matter whether you have a bank account or not. This financial model offers ease of access, fast transactions, and low transactional costs. And it is due to these factors, cryptocurrency is believed to be the future.

Mainstream Adoption

Believe it or not, large organizations have adopted crypto as a mainstream currency. Here are some examples:

  • Tesla

Led by Elon Musk, Tesla, a tech giant, has invested $1.5 Billion dollars in Bitcoin. Also, Tesla announced that its customers can now pay in Bitcoin to purchase its vehicles. Now, how good is that?

  • Paypal

Paypal has recently allowed its customers to transact using cryptocurrencies.

  • Mastercard & Visa

Lastly, Visa & Mastercard have indicated that they would allow their customers to use cryptocurrency.

Even though the cryptocurrency market poses some risks, people are slowly accepting it. And it won’t be long when local store owners start accepting Bitcoins.