Cryptocurrency stands for and implies use of digital currency wherein, encryption techniques are employed to monitor the generation of particular number of currency units as well as validate the transfer of these funds. The key point to be noted here is that these transactions are independent and not regulated under the guidance of a central bank. Cryptocurrency can replace traditional banks for a number of reasons such as:
Use of the internet:
Cryptocurrency can make the expansion of business and work easier by using a simple thing like the internet. There is least human interference and people no longer need to wait for hours in queues or keep calm till the bank workers get to work. It’s great to avoid the uncourteous bank staff!
Easy availability and access:
The biggest benefit of cryptocurrency is that it is easily available to the public. It makes connecting to investors easy, owing to its decentralized progress. One must know how to transfer funds online and then be a part of the large and ever-increasing network of cryptocurrency. It is a great aid in realizing the dream of universal digitalization.
Cryptocurrency is managed, expanded and sustained by its dense network of users. There is zero middleman engagement and computers involve blockchain to maintain safe database records. The network functions on a peer-to-peer basis. The country’s Government or banks do not need to be given any data.
Less chances of fraud:
Chargebacks means that once a transaction is successful, frauds endeavor to reverse it. This implies heavy loss to the recipient. Cryptocurrency ensures there are no chargebacks. This saves victims from being scammed by fake callers who pose as bank officials and others from the higher authorities.
Universal and international:
Cryptocurrency is recognized internationally. It is unaffected by exchange rates, transaction charges, interest rates or any other related charges. Thus, it makes the task more profitable and can also be used while travelling. The cherry on the creamy cake is that there are no external or imposed taxes that need to be cleared.
The user’s information is always kept confidential. A profile can be created without having to give away or disclose details about your identity and whereabouts. The traditional banking method involved the merchant getting every detail about you and your card through the “pull” mechanism on which the system works. Cryptocurrency works on the “push” mechanism where only the specified amount is pushed out.
Banks often charge hefty handling charges. The solution to this problem is cryptocurrency. In case of cryptocurrency, the charges are nil or negligible.In case third parties are employed to maintain or create the cryptocurrency accounts, they may charge commissions. This is totally between you and them and not the cryptocurrency platform that is employed.
Fast and simple transactions:
Since credit card or debit card details are not needed, the transaction can be done successfully within minutes by the watch. Only the recipient’s wallet address is mandatory. There is immediate settlement of deals. Third party approvals are removed by the blockchain system.
Thus, cryptocurrency has the potential to soon replace traditional banks.