Those were the days when humans solely rely on clearing-houses and banks for moving their transactions. But as time passed, people find these processes a little lengthy and time-consuming with many people involved. As the new century aspires to digitize financial services, a new fast and uninterruptable alternative financial currency system came into existence.
The biggest example of this can be Cryptocurrency. Cryptocurrency is a type of digital currency that helps in trading between two parties. It behaves as a medium of exchange where a person record keeps in an open ledger existing in a computerized database. It is safe because it uses cryptography-a smart encryption technology makes it difficult to imitate. Some examples of cryptocurrencies are Bitcoin, Ripple, Dash, Litecoin, Ether, etc. The central authorities do not issue them.
Exchanging with crypto refers to the act when a person wants to trade real money into cryptocurrencies. The process is executed either through a cryptocurrency exchange or through peers to peer transactions or receive a payment stored in a digital wallet. Nowadays, business houses and individuals are looking for a path that may help shorten the payment cycle and less interruption of third parties. There cryptocurrency work as a safe and fast alternative.
The Good side
When any technology is launched or come into existence, it comes with lots of advantages. Some pros are powerful and attractive enough, which gives rise to technology. Some pros change the working environment. Let’s see the good side of exchanging with crypto:
- One to one dealing:
The more the people involved, the more the time and expenses involved. Using Cryptocurrency, deals can be taken place between the two people. The involvement of many people in the line increases the commission charges, lengthy the process, and sometimes creates confusion.
- Lesser transaction fees:
While using other modes of exchange, one has to pay the transaction fees involved. Sometimes transaction fees increase with the amount and people involved. While using cryptocurrencies, a person doesn’t need to pay for transaction fees as the network’s transaction fees are compensated. It eliminates the process of costly payment.
- Ease in international trading:
Businesses are going global and increasing their international boundaries. Every business depends on other businesses to complete their business cycle. For that, they need steady cash flows. Cryptocurrency gives them a chance to shortening their payment cycle. It is a fast and secure method that expands the ease of trading.
- Twenty-four-hour availability:
Cryptocurrency works on an internet-based platform where an individual requires an internet connection to do the transaction. The transaction does not hinder the time lag between the countries or opening or closing exchanges. One can do an instant transfer. Generally, it takes ten to ninety minutes to get the process done. This advantage increases the uses of Cryptocurrency.
- Push mechanism
A credit card uses a ‘pull’ mechanism where a cardholder or in charge pull the card in the swipe machine where the person gets access to credit amount information. Sometimes this information is misused by the other person. But Cryptocurrency uses a ‘push’ mechanism where he sends the exact amount to the sender with no further information.
- Safe and secure
All the transactions are stored in the open ledger, which is encrypted by the cryptography method. So it saves the people from the fraud.
- Privacy
When the transaction occurs, the person does not need to share their account history or personal information, which increases privacy.
The Bad Side
No technology is truly good; they have their bad sides too. Well, the bad side helps us to weigh the technology before using it. It also helps the technology to improve its versatility. Let’s see the bad side of using cryptocurrencies:
- Lack of awareness
Cryptocurrencies are not too old. The first Cryptocurrency came to the surface in 2009, known as Bitcoin, which is not regulated by central authorities and hence does not get immense exposure. Most of the worldwide population still did not hear about these currencies. Hence, the wide uses of these currencies need education and awareness about these currencies.
- Human errors
Though cryptography mechanisms regulate these types of currencies, one cannot decrease human error chances. The digital can be lost, or sometimes people forget about it. The failure of hard drives and malware attacks also leads to problems.
- Not regulated
Central authorities or any banks do not regulate these types of currencies. Some countries still doubting their presence, and some even banned it. The lack of regulation decreases the trust and uses of these currencies.
- Limited scope
These currencies are used as payment for those who want to receive in the forms of Cryptocurrency. Not everyone knows about it, or not everyone takes the risk to use them. One also cannot use a shopping mall or other kinds of payments. The cryptocurrency debit cards are only accessible at cryptocurrency ATMs.
- Unknown future
Mass acceptance is still a lot to go. Some business houses and individual uses these cryptocurrencies, but the future is still unknown. The prices of Cryptocurrency are subject to market behavior. Those also decrease the use.
The Ugly side
Cryptocurrency has that side too. Maybe one thinks how can be that possible? But it is. Sometimes some extremes misuse leads to make the ugly side of anything. That also happens with Cryptocurrency too. Let’s see the grey points:
- Gambling
These currencies are also created for the use of gambling. Some casinos support these types of currency, also known as Casino coin. The person only needs to have an internet connection. Since it is not attached to any bank accounts, the transaction information can be hidden or misused, as any country authorities do not regulate these. That’s why it is also known as unofficial currency.
- Scams
An individual lack of experience leads to scams, frauds, and stolen money. Sometimes people trust the companies that offer unrealistic bonuses, strange offers, and beautiful perks, which leads to the scam. The chance also increases when the hard drives are lost and hacked by hackers.
- Black market
We all know how the black market works, hides behind the scenes and works silently. One cannot recognize their presence. An individual can transfer a vast amount of money anywhere in the world. There is also no limit to transaction number in a day—that why it increases the black money.
Summary
Cryptocurrency is a new face of digital money that helps the people in trading at ease.
The lack of regulation on the currency helps an individual to transfer the amount with ease. The increase in the prices of bitcoins and any other cryptocurrencies also increase the use of these currencies. These types of currency need to go through ups and downs so that reliability and uses increase. These currencies are innovated with the motive to achieve the decentralization and ease of trading. But proper education and general awareness can lift the technology and may eliminate the ugly side of Cryptocurrency.