Last updated on February 9th, 2023 at 08:05 pm
Cryptocurrency is increasingly impacting the world with its ability to provide faster, more secure money transfers, improved crowdfunding, and greater security. This article explores the numerous benefits the use of cryptocurrency has to offer and why people shouldn't be worried about its impact.
Cryptocurrency continues to become more and more popular across the world. With an increased number of tokens getting made, more people investing in currencies and businesses beginning to accept coins as a legitimate form of payment, cryptocurrency is on track to change the world.
This might sound daunting to someone who doesn’t like change, but the truth is that the ways that crypto will change things are predominantly positive. This article will discuss in more detail what some of these changes are.
What is Cryptocurrency?
So, what is this thing that is changing the world? Cryptocurrency is a term that applies to different types of currency that exist digitally on the blockchain and are completely decentralized. This means that they don’t have an overarching governing body looming over them. They exist in a peer-to-peer system that means that anyone from anywhere in the world is able to send and also receive payments.
It’s not the same as the physical money that we are used to as it exists purely on the internet, in an online database that enables the purchase and sale of tokens. All these sales will be recorded and stored in a digital wallet.
The name cryptocurrency came about because encryption is needed to verify different transactions. For encryption, advanced coding is necessary to both store and transmit cryptocurrency between separate wallets. That said, there are sites such as Cosmos available now which make the movement of tokens a lot smoother. More information can be found at https://www.okx.com/learn/what-is-cosmos but essentially, Cosmos is a decentralized network of independent blockchains. The blockchains stored on Cosmos are called Zones and they are all linked so that coins from one can be moved to the other very easily.
The first cryptocurrency created was Bitcoin and since then, there have been a number of alternative tokens created and it doesn’t look like there is any sign of crypto’s popularity slowing down. So, how is this going to change the world?
The Impact on The World
Some of the major ways that the increased use of cryptocurrency is going to change the world include the following:
Minimizing the Risk of Fraud
Fraud is a big concern whenever people think of money. When individuals transfer funds using their credit card on a site which isn’t secure, it’s possible that they’ll be at risk of fraud. This is a growing concern for everyone, particularly those who have fallen victim to cybercriminals in the past.
Cryptocurrency isn’t associated with your cash funds or your bank account. Everything is transferred online and securely thanks to the blockchain. All transactions are recorded and with digital wallets, it’s easy to keep tokens safe once they’ve been purchased. Because of this, cryptocurrency is going to play a large part in reducing the risk of fraud, allowing people to trade and purchase with peace of mind.
When an entrepreneur wants to raise money for an idea that they have, rather than borrowing large amounts from an individual investor, a lot of businesses are turning toward crowdfunding. This is where there will be multiple investors (who are usually just members of the public) that voluntarily contribute small funds to the business so that the entrepreneur can get their idea off the crowd. This method is preferred by many as it mitigates risk, meaning more investors will be keen to get involved.
Cryptocurrency continues to positively impact the crowdfunding process. Initial Coin Offerings have been created around crypto and can be used as a form of capital for start-up organizations.
Improvements to Money Transfer
The current process used to transfer money between banks is safe and efficient, but that doesn’t mean that there isn’t room for improvement. When large amounts of money are transferred, the process can take longer than a week, or even longer if the transfer is international. When cryptocurrency is transferred, the checks and balances that banks need to adhere to no longer apply. Regardless of the amount being sent, whether the payment is international or what kind of token is being used, the transfer can be carried out quickly, safely, and cheap.
Should People Be Worried About Crypto’s Impact on The World?
A lot of people don’t like change and as more individuals and organizations turn to the world of crypto, many still find the thought of crypto very daunting. There are actually a number of benefits thanks to the increased use of crypto. Some of these have been discussed in more detail above, for instance, increased use means there’s more crowdfunding, quicker transactions, and more security. Other benefits include stronger e-commerce, encouragements in advances in science, accountability for companies and individuals, plus foreign transfers become a lot safer. So, to answer the question whether you should be worried about crypto’s impact on the world: no, no you shouldn’t.
I'm a freelance writer from Israel. I like to write about just about anything. English is my 2nd language so please forgive me if my writing isn't perfect.
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