The development of electronic payments around the world is proceeding quite rapidly. There are new projects and new opportunities. The real discovery in the world of electronic commerce has become crypto-currencies. Originating initially in 2009, they began to gain massive popularity only now. The demand for crypto-currencies generates an increase in their exchange value. The leader in this aspect is bitcoin. His current rate is 1 BTC – 10 000 $. But what does the cryptocurrency have earned such fame? Let’s try to understand.
Table of Contents
Complete decentralization
First of all, crypto-currencies are an independent monetary system. Their release is conducted solely as a result of mining. They are not tied to the banking sector, but they also do not have real reinforcements, as is the case with conventional money that is secured by gold. The whole system works exclusively on mutual trust of users. Such decentralization is beneficial for users and business structures, but the authorities of the states are wary of this. Opinions are expressed that cryptocurrencies can undermine the system of domestic currencies and bring down the economy in the country. In this regard, the introduction of digital money in every way is inhibited, and some are also on the road to a complete ban.
Anonymity
All transactions within the crypto-currency system are anonymous. The parties do not know anything about each other, except for a few lines of generated digital code. This approach attracts not only honest users, but also scammers, so when making payments, you should be careful and work only with proven resources.
Absence of a unified money-laundering center
In the traditional economy, only the state bank of the country can issue money. Crypto-currencies are “mined” by miners, who may be in entirely different countries. They are due to the internal support of the system. This rule is valid for bitcoin, and for the others, cryptocurrency.
Presence of a choice between crypto-currencies
By the time the technology was born, the only bitcoin was actively used. Currently, available cryptocurrency is more than one and a half thousand. As a result, each user can choose in which currency to make payments or where to invest the capital. Businessmen, stock exchanges, and trading platforms are also actively working to provide users with unhindered access to the range of crypto-currencies, to facilitate exchange and so on.
Small commission rates
In comparison with bank payments, payments in crypto-currencies significantly benefit regarding commission rates. This is because the system is loyal, decentralized and supported exclusively by its participants. There is no need to pay interest to the bank and payment services, which sometimes mercilessly cash in on customers, setting sky-high interest for conducting operations.
In general, it can be noted that the technology of crypto-currency in its idealized version has significant advantages over the traditional banking system and other types of digital money. However, we should not forget that there are no precise forecasts regarding cryptocurrency. This market remains spontaneous and not regulated. Therefore, any investment in this type of digital assets should be treated with caution. Investors should adequately assess their capabilities and trust only official resources.