Currently, there are about 30 different types of cryptocurrencies currently in use around the world. While all of them are all distinct, they all provide a number of benefits over the traditional type of paper and coin currency that most people are accustomed to using.
Cryptocurrency Is Digital
Perhaps the biggest difference between cryptocurrency and regular money is that the former is virtual and the latter is actual.
Another important difference is that cryptocurrency isn’t regulated by any government, bank, or corporation. Because there is no physical money – everything exists online rather than in the real world – there’s no money to print, control or circulate.
A third important difference is that traditional rules don’t apply to cryptocurrency. The interest rates you pay on credit cards and loans, transaction fees, surcharges and other additional charges don’t apply to cryptocurrency.
Opposition to Cryptocurrency
Because cryptocurrency operates “outside the law” – or at least without the realm of any government’s or business’s rules and regulations – there are many who oppose it or fear it as a form of currency.
Many people have a vested interest in maintaining the status quo when it comes to the world’s currencies. If banks, businesses and governments can’t physically or virtually seize your assets, they lose a certain amount of control over you.
That’s one of the biggest reasons cryptocurrency is becoming so popular worldwide. Many people embrace it because it works on its own terms, not according to rules dictated by somebody else. In fact, even the rate of inflation that can affect the purchasing power of any government-backed currency – such as the US dollar or the Euro – has no effect on cryptocurrency.
Cryptocurrency also can’t be seized by any government agency. It can’t be garnished or frozen. Because cryptocurrency exists outside the jurisdiction of any laws or regulations, you never have to worry about not being able to access your money because of government or commercial interference.
Another huge benefit of cryptocurrency is the anonymity it provides to the people who use it.
Anytime you make a purchase online using your credit card, bank card, or through your bank account, a wealth of personal information is attached to your method of payment. This can include your name, address, financial data, how much money you make, what your credit history is like, where you work, and whether or not you are married.
Businesses, banks and websites use this information all the time to track not only your purchases, but also what sites you visit, your preferences, and what you do online. And if former defense department consultant Edward Snowden is to be believed, government agencies also are monitoring this information and keeping files on the activities of millions of people just like you.
When you use cryptocurrency, however, there are no identifying characteristics attached to the transactions you make. That means you can do what you want, buy what you desire, and visit any place online you prefer without worrying about being tracked.
Benefits to Businesses
There also are a lot of benefits to businesses to accept cryptocurrency as a method of payment.
When you sign on to accept a certain type of cryptocurrency as payment – be it Apple Pay, PayPal, Bitcoin or another popular type of virtual money – both the buyer and the seller benefit from the transaction.
The issuers of cryptocurrency are eager to promote your business as one that accepts their form of payment. Similarly, when you advertise that you accept a particular type of cryptocurrency, it gives you access to an entirely new group of customers who use that particular method of payment.
So accepting cryptocurrency as a method of payment is a win/win for everybody involved.
Breaking Down Borders
Another important benefit of cryptocurrency is that it knows no borders. It has the same value regardless of which country it is used.
This is beneficial because with traditional currencies, governments, credit card companies, banks, and currency exchanges will almost always charge some sort of transaction fee to translate one form of payment into another country’s currency. For example, if you were to visit Canada from the US and exchange your US dollars for Canadian dollars, a portion of your funds would have to go to the party making the transaction.
The difference between the value of national currencies is also always changing. So the value of the Canadian dollars you get for your US dollars today is likely to be different than what you can get next week or next year.
Cryptocurrency, on the other hand, has no exchange rate and you don’t need to pay an extra fee to use it. The value of your currency will be the same in Canada, US or wherever you want to spend it.
No wonder cryptocurrency is rapidly becoming the currency of choice for so many people around the world.
Author Bio – This article is a work of John Williams from Bridge Advisors LLC, retirement planners based in Maryland and specializing in non-traditional retirement planning, Robotic Stock Trading Software, Bank of Gold IRA, Gold Savings Plan etc. If you’re looking to make money with cryptocurrency, do get in touch with John today.