Cryptocurrency is a growing ecosystem that has slowly been making its way into the world’s traditional financial systems. According to statistics, the number of users of various cryptocurrencies in India has grown to 10.07 crore and around 350 startups are said to be working in the crypto market. Furthermore, both private and public sectors are adopting the idea of cryptocurrencies in their financial dealings such as making payments, value storage, and as an investment.
Now with over 6,000 cryptocurrencies and growing, these four reasons will answer your question, why the cryptocurrency is the future of finance?
The Beginning Of Decentralized Finance (DeFi)
The need for transparent, secure, and accessible financial systems is said to be rising and becoming more obvious. Many see decentralized finance or DeFi as a system that can offer more transparency and better transactional security and replace some conventional financial processes soon. Therefore, cryptocurrency is believed to continue to push changes to financial systems.
Varied Values Of Cryptocurrency:
While cryptocurrency doesn’t have an internal value, it holds value in the following ways:
- Payments: Cryptocurrency can be used to make transactions when buying goods or services without involving a third party.
- Value Storage: The shortage of cryptocurrencies can influence their value as the total supply of most cryptocurrencies is limited.
- Stable coins: Cryptocurrency can be attached to commodities such as gold or oil or currencies, such as Tether.
- Privacy: Cryptocurrency is built on a secure technology that can allow users and owners to remain anonymous during transactions.
- Digital Access: Anyone can enter the financial system using digital currency.
- Digital Gold: Cryptocurrencies and gold share attributes similar to money. Both can be used as a medium of exchange, has a store value, and possesses an account.
Transactional And Banking Benefits:
As cryptocurrency use grows day by day, acceptability and accessibility keep on rising. The cryptographic technique and technology also keep evolving which leads to the creation of a better and stronger cryptocurrency financial system.
The history of cryptocurrency is very clear on what stake it holds in the future of finance. Blockchain technology can potentially overthrow the traditional financial systems that currently require a trusted third party to verify and authorize transactions. As the technology grows, more sectors are being to accept cryptocurrency as a viable financial system. Cryptocurrency can and probably become the new financial system in the future.