Over the past few decades, the world has been rapidly transitioning from fiat money to digital money. Our means of payment are no longer unique metal discs with embossed portraits or paper rectangles with watermarks and unique numbers. Today, the means of payment in transactions is a set of zeros and ones stored in a specific memory cell on the bank’s server. Two basic parameters remain: each digital dollar is unique and can be identified and accounted for, and there is a high level of trust in the electronic payment system because it is regulated by governments, federal systems and central banks.
By the way, if you want the most complete and up-to-date information about cryptocurrency exchanges with good conditions, we advise – https://wellcrypto.io.
Benefits of investing in cryptocurrency
Cryptocurrencies are completely anonymous. When depositing money into a bank account, any user provides the bank and all associated systems with a lot of information about himself, without which the account simply will not open and the money will not be credited. When making payments, the bank analyzes a lot of information about us: passport details, address, family composition, sources of income, debts. This information we provide ourselves by signing an agreement on the processing of personal data. Our data then enters the database, and from there it is often leaked. In addition, a number of bank employees have access to the database, which is not pleasant for everyone. Cryptocurrency has no such thing. All that is known about the chain member is his public key numbers. No personal data is transmitted anywhere, and it is not asked for – there is simply no need for it. This quality of cryptocurrency is very valuable in this age.
No intermediaries in transactions. Since all data changes are made programmatically, no bank employees, custodians, or other “third parties” are required in the process. Unlike, say, bank transfers: when transferring money, the client does not have to blindly rely on the quality of the banking system and the honesty of all participants; it does not take much time for the process itself (in bank transfers sometimes the crediting period is 3-5 business days due to verification procedures). There is no need to open additional accounts for transfers to other countries; cryptocurrency settlements have no borders.
Decentralization. Cryptocurrencies are not regulated by any banks, reserve systems, or governments. Even the creators themselves have no control over the process. Cryptocurrencies are issued and managed by many people included in the chain. In such a situation, it is impossible to impose restrictions on the distribution of coins. The lack of a single central data custodian (e.g., a central server in a bank) also eliminates the situation where a single crash will cause the entire payment system to collapse.
What’s the conclusion?
New technologies appearing on the stock market cause a stir among investors. Each “novelty” that has attracted enough attention and gained the trust of market participants can soar high in a short time and produce a couple of dozen new millionaires and billionaires. At the same time, a reasonable investor is far from the “casino principle” and understands that creating a serious fortune and keeping it requires thoughtful steps and investments in really promising technologies for the long term.