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Cryptocurrency offers a variety of benefits over normal money. These include;
Anonymity - Transactions with cryptocurrencies can be done without divulging much, if any personal information about yourself. This ties in very closely with identify theft, the conventional way of transacting opens us up to identify fraud where one’s credit card and all associating information can be skimmed and copied. Credit card purchases “pull” a payment from a person and this can be initiated without your authority whereas cryptocurrency payments are “pushed” by the payer. Cryptocurrency payments cannot be “pulled” by a merchant. However recurring payments can be set up using cryptocurrency, but this is still a push, not a pull.
Cheaper fees - cryptocurrency transactions cost a fraction of regular banking transactions.
Ownership - cryptocurrencies cannot be taken away from you by anyone unless you give it up. Cyprus 2013 is a prime example of this where the central bank wanted to take back any uninsured deposits over $100,000 to recapitalize itself. As you can imagine this cause a huge outcry. Cryptocurrencies prevent this from happening as no one can take control of your money without your permission or without holding a gun to your head.
Global recognition - The cost of doing business across countries includes the process of converting from 1 currency into another - often at a cost that eats into profit. Cryptocurrencies can be sent from 1 country to another with very low cost and no exchange rates applied.
Speed - The average cryptocurrency transaction can take anywhere between 2 and 20 minutes to complete from sending to spending the received amount. Conventional banking can often take days to complete. An international wire can take up to 7 working days to be complete.
Accessibility - There are many countries with rural areas where the residents have little or no access to conventional banking. In the world of cryptocurrencies, anyone with a wallet on their mobile device, laptop or desktop can have access to money without the need of a conventional bank. Even if you do not own a mobile device or computer - your cryptocurrency “bank” can be accessed from any internet cafe or library with a computer (Although this is not recommended as key loggers may be installed on public computers and your passwords can be accessed)
Fraud prevention - Many online merchants and sellers have been subjected to buyer fraud where the buyer charges back to their credit card once they have received an item they purchased online. Cryptocurrencies prevent this because you cannot charge back.
Anti-counterfeiting - A cryptocurrency cannot be counterfeited because every coin in the system is accounted for. This alone plays a major role in economics because often the cost of counterfeiting is passed back to tax payers to recoup any losses due to counterfeiting.
While counterfeiting has become harder over the years because of the materials used, it is still not possible to completely and utterly prevent people from counterfeiting money.
What if the process of buying or selling anything with paper money had to include a step that scrutinized the money, checked the material used, double and triple checked the registration number of the note and checked that number against a massive database to see if a duplicate of that note exists anywhere? And if there is a duplicate or the note is proven to be a forgery, the transaction is halted and cannot proceed? What if the note contained a very secret identity number with a built in secret password that must correlate when checked against the database of money and if the database’s entry does not match the note you are holding, the transaction is rejected?
Wouldn’t that be a sure way of beating counterfeiting? Probably - but that’s not how things work, when you go into a store and buy a bag of groceries and hand over $100, the cashier has no way of checking the validity of that note other than looking at it, using a light or feeling it. And the reverse is also true, when they hand you your change - how do you check to see if the change you received is real? It may look real and feel real but could be a very good forgey, you just don’t know.
Traditional money handling processes have absolutely no way of ensuring that you are not handling a counterfeit.
Cryptocurrencies however do provide a way to ensure that no one can cheat, fake or try and create a fake coin because the entire network must accept the validity of the coins being used in the transaction - the entire network must agree that everything is good and well and the transaction is allowed to go forth. Every single cryptocurrency mining computer or node carries a copy of the cryptocurrency database, and everyone of them checks and validates every single transaction and confirms it. Every transaction is protected through the use of cryptography - where a secret key is used to validate the coin and transaction hence why it is referred to as a cryptocurrency.
Credit: iCoinPro Want to learn more?: http://www.discovericoinpro.com/DreamTeam