The reason why digital currency is the future of money?

In 1995, there was a serious claim that the use of Internet would collapse soon. Well, this was one of the worst predictions of all time. Innovation and digitization have paved a way to a futuristic world we wouldn’t have imagined otherwise. Cryptocurrency, Metaverse, and Web 3.0 are taking the world by storm in a sense of spending digitally, providing secure information on the internet, or offering a whole virtual experience altogether.

In the span of a few years, cryptocurrencies have grown from digital novelties to trillion-dollar technologies with the potential to disrupt the global financial system. Globally government officials have also expressed concern over the stability and risk of digital currencies. After witnessing all of the Internet fads, we believe this isn’t one. Our future holds dealing in digital currencies soon.

 

Dawn of decentralization: We have set foot in the era where we can solely own and control all our assets. Decentralization provides financial freedom that can remain unaffected by the vicissitude of the banks and government. As there is no third-party involvement, it can offer more transparency and better transactional security. Networks built on blockchain do not require any trust or knowledge of others. Decentralized finance (Defi) as a system can easily replace the conventional financial processes for obvious reasons.

 

Peer to peer transaction: ‘Save extra cost’, is the utmost persuading factor for all. Earlier, the presence of middlemen in the financial blockchain incurred extra cost on the transactions. More middle man, more money! The appeal of P2P is that you can transfer wealth or ownership of commodities without the involvement of a third party. A peer-to-peer transaction is transparent, secured and less complicated. In short, peer-to-peer transactions offer privacy and no additional cost on the transfer. 

 

Ease of use: We have spent our precious times in long queues, filing, filling forms and slips only for sending and receiving money. Remember when our financial work was halted due to down servers and bank holidays? Quite a horror! The advent of digital currencies is paving the way for endless opportunities. The undebatable advantage of digital currencies is its ease of use. Having a smart device allows you to be your own bank and make transactions much easier and time saving. 

 

Fraud proof/ transparent: We are living in a constant fear whether the bank details we have fed in will lead to malpractices, or is some third-party system tracking our transactions and usage? Digital currency is dedicated to focus on user privacy, so data breaches would be rare since it contains limited personal details. All transactions are encrypted between “digital wallets” and will result in an exact parity calculation on the ledger. Essentially, blockchain technology is poised to disrupt every aspect of our existence with this type of security.  

 

Global acceptance: Earlier, people had to pour in more money to send or receive payments across borders. By transcending global borders, digital currency promises flexibility and economic growth. Adding to the big picture, it also would be inexpensive, easy and fast. Digital currencies can boost trade and open up multiple opportunities to strengthen the financial health of the countries. Undeniably, digital currency is securing itself as the chosen currency for generations to come.

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