How does cryptocurrency work to assist the easy flow of money? This question can be answered quite precisely through the below mentioned points by Yee Kok Siong.
Theft Identification – Handing over a credit card to a merchant offers him/her access to your full credit line, regardless of the amount being processed. Also, credit cards work on a “pull” concept, where a merchant initiates the payment and pulls the chosen amount from your account. However, cryptocurrency uses a “push” scheme which sanctions the cryptocurrency holder to send the exact amount he/she wants to offer the recipient without the requirement of any further information.
Lesser Fee – The best aspect about cryptocurrency exchanges is the absence of transaction fees. This is primarily because the compensation of the miner directly comes from the network. For the readers, even though there is no bitcoin/cryptocurrency transaction charge, engagement with a third-party service for creating and maintaining of bitcoin wallets isn’t free of cost. Just like Paypal, which charges cash or credit card users for the online exchange for bitcoin, there is a certain (low) fee that has to be offered.
Universal Acknowledgment – Since cryptocurrency isn’t bound by exchange rates, transactions charges, interest rates or other charges related to regional boundaries; hence it can be utilized at the global level without any trouble. For businesses, this transaction medium helps to save time for managing cross-country dealings.
No Third-party Disruptions – Considering all the different benefits of Bitcoin, the most striking point focuses on the fact that governments, banks, and different financial intermediaries do not play any role in the cryptocurrency transactions. In simple terms, these bodies do not hold any say to interrupt a user’s transaction or freeze Bitcoin accounts. This allows the user to experience a greater amount of freedom as compared to dealing related to national currencies.
Mobile Transactions – Similar to other types of online payment systems, the cryptocurrency users can make payments for their coin from anywhere through internet access. This cuts short the need to travel to a bank or store for the physical purchase of products. However, unlike online payments made with U.S. bank accounts, the need for presenting personal information is not necessary.
With the growth of the industrial as well as IT sector, the need for cryptocurrency has progressed significantly. Not because this medium is safe and quick, but it serves as a convenient platform for storing money that can be utilized all across the globe for trading products and services. Even though the bitcoin market hasn’t fully grown across different work sectors, there are strong indications that its path would strengthen in the next few years.