In recent days, when the Indian Government is going to table the bill related to Cryptocurrency regulation in this session starting from 29th Nov 2020, the market has seen a 20% crash seen in Bitcoins and other currencies as well.
Well, Cryptocurrency has become a global phenomenon in recent years, although much is still to be learned about this evolving technology.
I think, there are many concerns and worries swirling around technology and its capacity to disrupt traditional financial systems. Well, which is not true.
For most people, cryptocurrencies are typically thought of as high-risk investments to earn a jackpot type of gambling or trading for overnight gains.
Let us see, what we can do with cryptocurrency:
1. No censorship on your wealth
Can you believe that your bank account is frozen at any time, due to your country-owned rules or banking system failures due to irregular uncertainties?
When that happens, people can find themselves with little to no access to cash, even if they’ve done nothing wrong.
This is where one of the most unique and powerful cryptocurrency uses comes into play.
Cryptocurrencies like bitcoin and other currencies act as a censorship-resistant alternative store of wealth that only the individual with the private keys to the wallet has access to. Hence, no personal cryptocurrency wallet can ever be frozen by authorities.
2. Money transfer with low costing vs existing banking systems
We should understand that one of the most well-known uses of cryptocurrency is for sending and receiving payments at low cost and high speed. If you will try to send the same amount through the bank, it will take high fees and as well as slow speed.
3. Private Transaction system with authentication
Any Individual can make money transfers without having to explain the reason to a bank why they are sending a large sum of money, what the sources of the funds are and who they are sending it to, which can delay the transaction and involve unnecessarily bureaucratic processes.
Well, there is a discussion going on that it can be misused and it could be used to increase the terror funding and also can be used for irregular activities, like Havala activities, etc. But if these cryptocurrencies can be regulated by their own governments as an asset, then, it would be easy to track the source of funds and the destination account through KYC.
4. Non-Cash Remittance
Another powerful use case for cryptocurrencies is non-cash remittances.
For example, Blockchain technology-enabled vendor enables its users to send non-cash remittances from anywhere in the world to anywhere in the world.
Receivers of cryptocurrency can purchase cryptocurrency tokens, which are then used within the Blockchain technology-enabled vendor app to make non-cash remittances such as mobile data top-ups or utility bill payments for their relatives within their country.
5. Small Payments can be paid through Cryptocurrencies
Small payments like blogging, content writing, photograph sellers, and other small professions can exchange cryptocurrencies instead of real payments.
Traveling around the world would be easier as these cryptocurrencies would be globally accepted and can be encashed in their own country's currencies.
6. Market Places will accept the same as a cash transaction
Soon, a lot of websites will start accepting cryptocurrencies as transaction amount through online transfer of these currencies. A lot of new marketplaces will open instead of the regular market.
We need to understand that Fiat currency is not going anywhere. without fiat currency, there is no existence of Cryptocurrencies.
Cryptocurrency is not replacing fiat currency, it is just and new asset class, which is widely and globally accepted by every sender or receiver.
The technology behind it is blockchain technology, which is a trustworthy technology and can not have its replacement. It is based on automatically created blocks, which can not be destroyed or replaced with any malafide intention.
Let us see, how the world takes it and how we can use it more efficiently in the future.
Thanks for reading