Cryptocurrencies were now slowly taking over the world economy whether we like it or not. It is the evolution of the future currency if we are not going with it we will be left behind scratching our heads. But what really are the differences between a cryptocurrency and the money that we have in our wallet - the US dollar, Euro, Pound, Yen or whatever fiat money we have.
Why should we be interested in cryptocurrency rather than that fiat money that we have now? For us to have an idea about this matter, we will dissect their differences:
1. Physical Appearance - We can directly notice this characteristic. Fiat currency (Dollar, Yen, Pound & etc) can be seen and hold physically whereas cryptocurrency is all digital or it can be called as virtual money. Its all done with our phone or computer. While fiat money is tangible and there are expenses in production - the pennies and dimes cost more than a penny to produce a penny and it is not very efficient for us to keep producing these coins.
2. Ownership - The money that we hold in our pockets and in the banks is issued by the government and its controlled by it and the banking system whereas with cryptocurrency - it's decentralized. It's not owned or created by a banking system nor by a government. Nobody owns the cryptocurrency and this is available for everybody. We control our own crypto coin and no other middleman involve.
3. Rate of Value - This is all about Inflation vs deflation. The value of fiat money deflates as time goes by. A few decades ago, when we go for shopping or grocery, our cart is full of items but nowadays given the same amount of money, we cant even full the basket of groceries. The price of the goods were fast increasing while the fiat money's value deflates. Unlike with cryptocurrency, its value keeps rising day after day. I remember a few months ago, 1 bitcoin is just $2,000 but look at it now, its $6,500 per bitcoin and still rising!
4. Flexibility - Crypto is almost impossible (i just give room for a little possibility) to counterfeit just only be careful with hackers and "phishers". It can be divided into small pieces as much as you want and can be transferred instantly regardless of distance as long as there is an internet connection on both parties. We don't need physical storage room just to kept and secure it - in this case, we don't need banks to keep our money. While fiat money is otherwise with everything stated.
5. Cheap, Fast and Reliable - When we look at the movement of money and how easy it is to spend it, move it around especially in global scope. The banking systems are oftentimes involved in sending our money overseas and there is charge in every transaction and usually, it takes a couple of days before the recipient receive it. Whereas in crypto, it just takes a click of a finger and a few minutes later the transaction is done without hassle with a cheaper fee.
Cryptocurrency is the next evolution of banking we're at the perfect place, at the perfect time, where there is technology to move money around instantly. It's more efficient, faster, and more secure. There is an accountability system which is really integrated into the design of the economy and how the money moves around. There are many benefits for people and businesses to adopt cryptocurrency.
