We all know that currency has gone digital since the first crypto hit the world in 2009. But what a lot of us don’t really know? Why?
There are lots of good reasons that we’ve turned to cryptocurrency, and it has seen such an explosion – especially in the last handful of years – but what are they? And if you’re thinking of buying any crypto, it’s pretty important to understand them. You can get to grips with what’s going on with the blockchain here, but let’s start unpicking why cryptos have got such a wave of popularity rolling right now.
Reason 1) Versatility
First up: we’ve got the versatility, and this is seriously gaining traction at the moment. Yes, okay, cash can be used anywhere, but it’s got a major drawback in an increasingly global world – it’s country-specific. Sure, currencies like the Euro have gone some way to mitigating this issue, but there are still about 180 fiat currencies used across the planet and if you’re going to be traveling anywhere that isn’t your home country… well, you’ve got a problem. In some cases, an expensive problem!
Say you’re going from the US to the UK. Two countries that have a lot in common and frequently interact, but what are you doing for money? You’re heading to a bank, paying their sometimes-extortionate exchange fees, getting your money in another currency, and then doing the whole thing in reverse when you come back from your trip. Or you’re looking at high costs when you pull money from an ATM in another country or use your card… it feels like you lose however you approach this.
Cryptos, though, eliminate that issue very neatly, and as a result, we’re seeing a big spike in cryptocurrencies in travel. Because a Bitcoin is a Bitcoin whether you’re in Australia, Italy, the USA, Mexico, or anywhere else – you can forget the conversion fees and just use your money however you choose. Not bad, especially in a world where we all like to globe-trot!
Reason 2) Anonymity
Feeling protective over your personal details at the moment? Pretty understandable, especially with how invasive the internet can be at times. It can seem like Google knows everything there is to know – sometimes even more than we know about ourselves – and that’s a little unsettling. We want our financial info to be known only by us. Hands up who would like more privacy, not less, when we’re talking money?
That’s particularly true in the digital world, where you’re vulnerable to cybercriminals – and since cybercrime has skyrocketed lately, we’re increasingly getting cautious. There are many online activities where you might not want to link up your bank card or credit details – and crypto gives you another option.
Let’s look at a casino as a decent example of this. Not many people want to make their casino wins public to the world, or even just to their bank. Some are also worried about the window of transfer; although online casinos have really good security, it’s understandable to feel uneasy when money is getting passed around in the digital domain. That can ruin a good evening of gameplay because you’re constantly thinking about something else.
Enter crypto. Now, you can rest assured that your bank details remain private, because you’re not even using them. That means you can enjoy a blackjack game online with ease, celebrate any wins you achieve, and relax, because everything is anonymized on the blockchain, and nobody – cybercriminal or government official – is going to be tracking what you’re doing. They simply can’t, and that’s one of the beauties of this tech!
Reason 3) No Freezes
When you’re using fiat currency, you are – to a degree at least – at the mercy of the bank. On an apparent whim, they can put holds on your account, freeze your card, lock your funds, or anything else (admittedly, usually with a reason, but it’s still inconvenient). If you’ve tried traveling abroad, you might have run into this problem even if you’ve told them in advance – it does happen, and it’s super frustrating.
Fortunately, that goes away with crypto. Because it’s decentralized, there’s no overseeing body or bank to lock your funds, and you’re in full control at all times, wherever you are. That’s a nice feeling, especially if you’ve been stung by inconvenient freezers in the past.
Wrap Up
We’re not likely to see crypto eliminate the big banks and fiat currency system in a hurry, but there’s no denying that it’s got some major offerings for those who prioritize versatility, anonymity, and control over their own funds. It’s great that people now have this option, and it’s therefore unsurprising that so many people are starting to pick up crypto as an alternative finance option.
