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July 23, 2018updated 27 Jul 2018 9:15am

Cryptocurrency positives and benefits

By GlobalData Financial

Cryptocurrency positives and benefits include protection against identity theft; as well as greater clarity, accountability and quicker settlement, according to GlobalData Financial  Services.

Cryptocurrency appeals to both the short- and long-term investor. Yielding short- or long-term gains is dependent on which cryptocurrencies you invest in.

Investing $10 in bitcoin in 2013 would now make your investment worth over $6,000. Conversely, for the less patient, investing in alt-coins such as Ripple or Monero could also bring financial gain in a much shorter space of time.

However, in order for these prices to remain of interest to the investor, further adoption globally needs to occur.

From a currency perspective there are also numerous advantages. For individuals who want to avoid identity theft, cryptocurrency is a good option.

Payment through credit or debit card can also mean giving access to your credit line or bank account, but, with cryptocurrency the holder sends exactly what he or she wants, with no extra information, providing complete anonymity.

Cryptocurrency positives  and benefits

In addition, most cryptocurrencies are decentralized, which comes with transactional benefits.

Unlike fiat currency there are no banks or government regulation acting as the middle man between transactions; users transact directly with one another.

In traditional business dealings numerous parties are involved, adding expense and complication. However, crypto provides greater clarity, accountability, and quicker settlement through direct one-on-one affairs.

Furthermore, cryptocurrency has little to no restrictions when used internationally. Having levies imposed or values reduced by exchange rates doesn’t occur, aiding those who trade internationally.

Of course, there are numerous macroeconomic issues to consider should cryptocurrencies replace traditional currencies, but this is unlikely in the short-to-mid term.

Realistically cryptocurrencies will run alongside traditional money, and there can be economic benefits to this.

For example, it is said that there are approximately 2.2 billion individuals who don’t have access to traditional exchange systems, although they do have the internet and mobile phones. The cryptocurrency ecosystem has opened a new avenue for these individuals with no business account or withdrawal software needed.

Furthermore, the effects of counterfeit money and increasing inflation are avoided as this digital currency cannot be duplicated.

Lastly, regulation is on the horizon for crypto. While the lack of regulation is no doubt part of the appeal for some, to gain mass-market adoption, regulation will be critical. However as of yet, it is clearly evident that there are benefits of this innovation for everyday life as well as your wallet.

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