What are Some of the Ways Cryptocurrencies are Changing the World?
Cryptocurrencies like Bitcoin, Litecoin, etc. have become all the rage today. These are touted as the game-changers in the areas of financial inclusion, e-commerce, etc. But how exactly are these bringing a global transformation?
Instant International Transfers
One of the main advantages of the digital currencies is the instant money transfer. When we compare these with the local money transfers that are initiated using the traditional methods, there may not be much of a difference. However, international bank transfers are infamous for taking a long time (even as long as a week sometimes) which is why bank transfers with a cryptocurrency like Bitcoin is a much better option as it’s safer, cheaper, and most importantly- faster.
A Whole New Level of Security
The cryptocurrencies make it possible to convert any asset into a digital format which means we can avail “smart contracts”. For instance, the escrow accounts offer a level of security that’s unheard of.
People can use escrow accounts for all kinds of major transactions where security and safety are a big concern. For instance, in case of a property deal, the buyer can put the funds in an escrow account, and these are disbursed to the seller only when they hand over the title of the property.
Another example of “smart contracts” is the multisig technology which ensures that funds from a particular account can be withdrawn only when a certain group of individuals grant access with their signatures.
Power to the Masses
Before the digital currencies became a norm, all monetary transactions were regulated and enabled by the central banks. However, the cryptocurrencies are managed and controlled by the people, i.e. the masses. The central banks and even the governments have no control over these networks. They have no way of knowing how the money is circulating in these networks, and they cannot maintain the records of these transactions either, which was possible earlier when the only money was the traditional money.
In other words- money laundering is easier with the digital currencies. And although the taxmen around the world are doing their best to control the situation, only time will tell how it will all turn out.