In the present time of 2021 cryptocurrency market is increasing more rapidly than any other so many cryptocurrency enthusiast doing analysis about cryptocurrency like Bitcoin or other altcoins that can take the place of fiat currency.
In this article we will explain how this cryptocurrency ecosystem is very near to overtake the future of fiat acceptance as a payment option.
And also we will try to cover those points which are challenging cryptocurrency to accept as a payment.
Why Choose Cryptocurrency Over Fiat?
There are many factors which make cryptocurrency more better than any fiat currency.
Let us explain these factors one by one.
Security And Safety With Cryptocurrency
No doubt that fiat is a better option from the point of safety and security of funds but Cryptocurrencies like Bitcoin, Ethereum and other altcoins are far more better from the point of security because there is no mediator between the sender and receiver.
The based technology of cryptocurrency, which is Blockchain, is more secure than existing banking system security.
In the present time many bank authorities are trying to use Blockchain technology with banking systems, so that they can give more security to their users.
And also many countries’ governments accepted Blockchain as a new era of technology in the payment system for the future.
Almost every developed country’s government approved Blockchain technology to use with the banking system.
So we can say Blockchain is a very powerful and safe technology. And every Blockchain technology based cryptocurrency is reliable and trustworthy.
Opportunity Of Investment With Cryptocurrency
With the use of normal fiat currency we can do only payment. And the amount of holding fiat money in a bank account can’t sustain its original value. Fiat currency values usually get down year by year.
So to have fiat currency is not a profitable option for a person.
But opposite of this, if a person can hold the best and trusted cryptocurrency in his wallet then he can make lots of increments in his holding.
So even without doing any hard work we can make lots of profit with cryptocurrency just by holding.
So this fact of indirect investment of our money without doing anything makes cryptocurrency more better than fiat to accept as payment.
If People in the future can accept salaries in Cryptocurrency form then they can make lots of money easily. Even a small earner in practical life will be able to make huge earnings with less struggle.
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Transaction Speed In Cryptocurrency
No doubt the confirmation option in cryptocurrency plays an irritating role but still crypto transactions are much better and faster in comparison with the normal fiat currency transaction.
In fiat currency to make bulk transactions, we need annoying documentation work and also we need to give reason behind the bulk amount payment.
But here in cryptocurrency we don’t need any type of document like procedure or any kind of approval from any authority.
Privacy Of Users Fund
In the fiat currency system we need a bank account to hold funds and that bank account details are visible to all the employees of the bank system.
If somehow a bank employee knows a bank customer individually then there are chances that he can check bank account details.
This fact of privacy is not going to be a big deal for those who have small funds in their bank account but this is a very dangerous part with the privacy system for a user who is very rich or want privacy related with his bank account details.
In cryptocurrency, transactions are publicly accessible. Any person can trace another person’s transactions. But there are random address systems where a user can hide his wallet details where he holds all the funds.
Fiat Payment Are Reversible
Fiat payment may be a good and easy job but these are reversible in nature.
If someone will claim that he sent funds by mistake then bank authority can reverse that transferred fund.
Scammers can use this safety option as a scam tool.
But here in cryptocurrency everything is irreversible. Numbers of Confirmations of a particular transaction are indication that transaction can’t reverse.
Usually 3 confirmations are reliable in cryptocurrency transactions.
Worldwide Payment At Low Cost
Every country has its own fiat currency and that currency can be used in that particular country. So a problem arises for those people who want to make payment at international level.
But in cryptocurrency we can do transactions at very low cost.
In Cryptocurrency payment, No matter what is the amount of funds we want to transfer, transaction fees depend only on the input and output of the transaction.
With the use of TRX , DOGE, DGB like coins we can transfer funds with less than $1 transaction fees, which is 100 times less than what we need to pay at other platforms related with fiat systems for international payment.
Ownership Of Fund
In fiat currency based banking systems, Our funds remain in bank authority, not in our hand.
Bank authority uses our fund for their own use for investment purposes to give loans.
In the cryptocurrency ecosystem, A user can control his fund owner in his own way with full freedom.
Challenges For Cryptocurrency To Take Over Fiat Currency
No doubt cryptocurrency based currencies are far more better than fiat but still there are few factors which are highly challenging for cryptocurrency to replace fiat currency.
Identity Of User
In cryptocurrency a user can hold his fund without document work. But somehow, if someone steals the crypto wallet then no one can catch the thief.
This is going to be a challenging option for the country’s government to use cryptocurrency as a payment option in practical life officially.
High Volatility In Cryptocurrency Market
High volatility in cryptocurrency market is one of the best things of cryptocurrency that gives us the opportunity to make investment but beside this opportunity this can be a negative point to use cryptocurrency as a payment option.
Because after a payment , if the price of the coin will get down badly then how a payment receiver will see cryptocurrency in positive way.
Responsibility Behind The Cryptocurrency Network
No doubt cryptocurrencies are much secured and safe but still there are many things which are needed for official acceptance of such things with step by step document work procedure.
But a big factor is the team and responsible authority or person behind the cryptocurrency are not available behind most of the coins.
So official acceptance of cryptocurrency is not easy.
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