Cryptocurrency It is a growing ecosystem and in recent years Bitcoin users and its transactions have grown by an average of about 60% per year.
Meanwhile, private and public investors have expanded their commitment to cryptocurrencies such as Ripple, Ethereum, and many other digital currencies in the industry.
Cryptocurrency has turned into a $ 200 billion industry. The history of cryptocurrency goes back to the 1980s, with the advancement of cryptocurrency This eventually led to the formation of cryptographic techniques designed to secure networks in cryptocurrencies.
We can also consider crypto to be an investment in emerging financial systems like DeFi (Decentralized Finance), Decentralized Financial System (DeFi), as an alternative finance system. Built on a blockchain that allows anyone to connect to this system. In addition, transactions are conducted publicly, which increases the transparency of this financial system. Here are some of the advantages that this crypto system has to offer.
The disadvantages of traditional banking systems include:
- Inflation can negatively affect the value of money.
- Lack of transparency
- The bank’s operating costs are high.
- Exchanging information between banks in different countries is very slow, especially when it comes to different currencies.
What are the advantages of cryptocurrency?
Unlike traditional banking, there is no centralized control on the blockchain. Exchange rates are influenced only by the market economy, not by government regulations, while transactions themselves are much simpler and more transparent than standard bank transfers.
- Faster transactions
Transactions between banks can take several days and are usually held only on business days. Blockchain allows you to cut transaction times down to a few minutes and can be processed 24/7.
- High level of transparency and security
Any changes to the blockchain will be made public to all parties. This increases the transparency and integrity of the process. This is because the user can be confident that the transaction will proceed as intended. In addition, all transactions cannot be changed or deleted.
- Eliminate unnecessary intermediates
With blockchain technology, employees can collaborate without the need for complex hierarchies. The technology eliminates the need to go through payment verification, insurance, deposit, and other processes that complicate the process all at once. So from so many useless intermediaries.
- Lower operating costs
By excluding third-party intermediaries and additional operating costs, the blockchain can significantly reduce payment costs.
What will happen next? When people turn to cryptocurrency, finally together with a convenient solution In a more accessible platform Of course, in the future, it is possible for people to turn their attention and start using cryptocurrencies in their daily lives.