Cryptocurrency has become a buzzword in today’s world which is why many investors are interested in investing in it. You might not know it, but as of now, Coinbase has approximately 89 million users worldwide. So, are you wondering what’s the reason behind the massive success of crypto and whether you should step into the world of crypto too or not?
Let us explain some of the features that make it unique. Once you know about these features, you can decide for yourself.
What Are Some Features That Make Crypto Unique?
Millions of people have adopted digital currency in retail stores, and you can pay for many things directly with your crypto wallet. If not directly, you can purchase gift cards for top brands using cryptocurrency from sites like Coingate and use them at stores or online to buy your favorite items.
Other than that, listed below are some of the unique features of cryptocurrencies that set them apart from traditional fiat currencies.
In case you’re not aware of this fact, let us tell you that, unlike traditional fiat currencies, cryptocurrency is decentralized. This means it neither has a governing authority nor a single person who looks after the framework.
A majority of the cryptocurrencies are decentralized on nodes – a distributed network of computers spread throughout the world. After verification through cryptography, the transactions are recorded in a publicly distributed ledger known as a blockchain. Everybody who is part of the network has a copy of the ledger, which eliminates the need to trust a single entity or organization.
Since crypto is decentralized, it doesn’t depend on human calculations, which makes it highly fault-tolerant. Other than that, the decentralized nature of this technology doesn’t make it rely on third parties, therefore reducing any risks.
Governing bodies and institutions have a long history of seizing private wealth and properties of individuals. When it comes to cryptocurrency, all transactions happen to be anonymous. The wallet address of the person initiating the transaction and the person receiving the transaction is the only information available.
However, the wallet address is completely anonymous and requires a private key that is only known to the wallet’s owner. Therefore, this makes cryptocurrency censorship resistant.
Central banks have the authority to manipulate the value of the countries’ currency in the name of their economic policies. This makes fiat currencies inflationary in nature and also brings an overall decrease in the value of the money over time.
However, this isn’t the case with cryptocurrencies, as they tend to have a predetermined supply that is coded into their underlying algorithm at the time of its creation. This means that no individual or association will be able to affect the supply of currency without the approval of the majority.
Hence, if the demand or adoption of any cryptocurrency is experienced, it will cause a corresponding increase in its price.
You must think that security may be compromised since there is no central authority to supervise everything. However, that isn’t the case, and nobody can change the characteristics of the network for their personal benefit.
Cryptocurrency uses cryptography which is a complex mathematical algorithm that serves as a firewall for attacks and ultimately adds an extra layer of protection for the users. All the information on the blockchain is hashed cryptographically, meaning the data’s true nature is hidden.
With cryptocurrency, you will make transactions using a public key, but you’ll be accessing the data using a private key.
Freedom From Extra Charges
Currently, being a user of banks, you would be aware of several fees that are a part of regular fiat currency exchanges. However, as far as cryptocurrencies are concerned, you will be able to free yourself from all standards, as well as hidden fees and charges.
The perks don’t end here, though, as you would get freedom from minimum balance fees, account maintenance fees, and overdraft charges as well. Plus, when it comes to international transactions, the cost tends to be generally lower as compared to an average bank’s fee.
Additionally, you should also know that crypto transactions aren’t like other bank transfers and don’t require you to wait for extended time periods. They are pretty fast and take place almost instantly.
Undoubtedly, cryptocurrencies have made it to the list of incredible investment opportunities. The unique features of crypto listed above contribute to its success of it and prove that without even having physical existence, cryptocurrencies can be of significant value.
If you’re thinking that crypto is just another hype and people will forget about it in the future, you’re wrong. With its application, adoption, and features, it can be safely said that crypto is here to stay and can potentially make a whole another level of impact on the world.