Crypto, or digital currency, is definitely the future and like it or not, we are heading towards a cashless society. The underlying principle of ‘cryptology’ means the currency resistant to hackers, which is essential for a currency. This technology operates on a secure blockchain platform, a transparent ledger-based system, reinforcing its security and reliability.
While governments are planning to issue digital currency, the existing cryptocurrencies are independent of governments and central banks, which, for many, is an attractive proposition. Nobody wants to have their financial transactions checked and using Bitcoin, or any of the other cryptocurrencies, you can remain anonymous.
Eliminate 3rd party involvement in financial transactions
When you pay by bank transfer or credit card, there is a 3rd party that takes a commission on the transaction, whereas paying with cryptocurrency eliminates the need for a 3rd party altogether. Banks are always looking for ways to make money and they are not happy that people now have a choice and can transfer money without the bank’s help. There is custom cryptocurrency accounting software that traders use to calculate taxation, which helps in many ways.
Like any other commodity, you need to have a solid understanding of crypto and the markets; traders use cutting-edge software to manage their trading and there are many different digital currencies, aside from Bitcoin, which is the leader at this time.
The retail sector is embracing cryptocurrencies; you can pay for your coffee in a Sydney or Melbourne coffee shop with Bitcoin, which is a reflection of its popularity. More and more retailers are offering digital payment gateways for their customers and as we move towards a cashless society, you can expect to see more retailers using Bitcoin as a form of payment, while other digital currencies are also becoming accepted as a form of payment.
Types of cryptocurrency
As you can imagine, there are different types of digital currency, such as:
- Utility – ETH and XRP are examples of utility crypto, which serve specific purposes on their particular blockchain.
- Transactional –Bitcoin is the best-known cryptocurrency that can be used to pay for a transaction.
- Governance – These tokens represent voting on a blockchain.
- Platform – Solana is a good example of a platform digital currency.
- Security tokens – These represent ownership, which is stored on a secure blockchain.
Not backed by governments
Fiat currencies are issued by governments, whereas crypto are private networks and some would say there is no security, yet fiat currencies can be devalued at the drop of a hat, so there isn’t really any more security with fiat than crypto.
Crypto is the future
Blockchain technology seems to be 100% secure and digital currencies have advanced to such a level that they must play a major part in the future of finance. Crypto mining is in full force and new digital currencies are emerging on a regular basis, which means they will certainly play a major role in the future.
If you would like to learn about cryptocurrencies, Google is your best friend and can take you to lots of free resources.