Digital Currencies Are the Future of Global Finance – Here are 4 Reasons Why

Digital Currencies Are the Future of Global Finance – Here are 4 Reasons Why

Background

The virtual currencies were incepted almost a decade ago upon the creation of Bitcoins in 2009. Since then, the trajectory of BTC has not been a straightforward or smooth one, but rather fluctuating, proving to be beneficial for the traders and the investors at time, while causing financial distress and losses for the same crypto market. One of the main reasons behind the hesitation and under-confidence of the people in virtual currencies is the uncertainty and variability in its prices over the course of time. People even believe that this uncertainty and fluctuation is here to stay and will only negatively affect the market and investors in it. However, we believe this to be untrue, and therefore we are writing this article in an attempt to shed light upon the reasons we believe that not only will the crypto will continue to perform well, but also shape and become the future of global finance. Here is a list of the top 4 reasons we have identified:

1. It is Immortal

The technology upon which the digital currencies are based on and created is known as the blockchain technology. It should be known that blockchain technology is impenetrable and is well-known for the fact that it is immortal – i.e. it cannot die or be wiped off.

This implies that this technology will never cease to exist. As long as the nodes in this technology run and are being used, this technology will not perish, and the only way that the blockchain can be wiped off from the world could be through the demolition of all the computer systems, internet and the electricity in the world – something we all know is not going to happen, therefore blockchain technology is indestructible. Download the big money rush app to learn more about Bitcoin and automated trading in order to make great gains and reduce losses.

2. It is a Perfect Substitute for Fiat Currency

Digital Currencies can also be utilized as substitutes or alternatives for all the fiat currencies such as the popular U.S Dollar, British Pound or Chinese Yen etcetera.

Although there are several advantages of fiat itself, however, there are many benefits of crypto which beat the traditional fiat currency. Among these advantages, the major ones are the rapid transfer of payment on crypto channels, the low transaction charges when compared with other conventional methods, no intervention of a third-party regulatory institution and many others.

One key advantage of crypto comes in the form of a greater ease of making international payments. As compared to the manual transfer of physical money to the recipient, crypto payments can be made over the internet via the rapid technology, which allows you to make payments within minutes or hours, as compared to days or even a week for the fiat currency.

These pros of the virtual currencies make it one of the best candidates to replace or become an alternative to the regular fiat currency. These benefits can be utilized by both the sender and the recipient of a payment or transaction as both would be saving their precious resources, such as time and money.

3. High Amount of Volatility

The general and common perception about volatility among people is negative. Investors and traders generally consider it to have an adverse effect on their crypto investments. However, it should be noted that, although volatility generally has an unfavorable impact on the long-term crypto investors, it does nonetheless favor the short-term daily crypto traders, allowing them to make profits through these daily fluctuations. This can be a plus point for the investors and traders seeking the trends in the crypto market.

For traders and investors who seek to make gains through this volatility, they wait for the prices to hit rock bottom, and then purchase these crypto, thereafter selling it at much higher prices and earning great Return on Investment.

4. Increased Investment in Virtual Currencies

There has been a great positive response to crypto investments in the recent past. For example, the social media giant, Facebook, introduced its own virtual currency by the name of ‘Libra’. Many other notable companies and organizations, even the ones who initially disapproved of the crypto phenomenon, have now changed their stance on it and are increasingly converting their cash reserves to crypto. This allows these companies to reinvest their earnings and equity while saving it from the impact of increased inflation on both, shorter as well as longer run. The examples of these companies are Tesla, Microsoft, Amazon and JP Morgan. All these companies are completely aware of the true potential of the concept of a digital currency, and are therefore launching their own ones, in order to benefit from them in the long run.

A Final Word

Nevertheless, there are many people who are still not too fond of the crypto, and remain skeptical about it, believing that this concept is flawed and will soon perish. Others however, think otherwise and the number of people who believe in the success of crypto is increasing day by day.

There has been a great surge observed in the acceptance and holding of crypto among all; retail, institutional and individual investors, who have started using crypto to make their daily transactions at an increased pace. This field is developing and progressing on a daily basis, and since it involves technology, therefore there is always more room and cushion for development and innovation. Experts are finding newer and better ways of investments in this market, and will surely come up with some ideas in the near future. Given that all of this remains true, and the trajectory of crypto goes only upwards from here, it would be safe to think and say that crypto is here to stay, and is the future of global finance.

source: https://www.abcmoney.co.uk/2021/04/09/digital-currencies-are-the-future-of-global-finance-here-are-4-reasons-why/

Kenneth Page

A futurist and entrepreneur working on the next generation of financial services. He studied reports on blockchain technology companies building the infrastructure, applications, and practices that enable a decentralized world.

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