“Bitcoin has huge potential to change the status quo of financial systems around the world.” – World Economic Forum Annual Meeting 2013
But whether you know it or not, there is a revolution going on, and you might not have realized it yet. So what is the fuss? And why do you even need Defi crypto in the first place?
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What is the big deal about using Bitcoin?
Blockchain is just a chain of transactions always available for everyone to see, making it very transparent and trustworthy.
On the other hand, all transfers made through traditional payment processors are recorded by those institutions on their private ledgers, so either you have to trust them about what they have written down or ask for proof (most of the time, that proof is not published). It can be a big problem, especially for large banks that use their private ledgers to cheat you.
Finally, cryptocurrency transactions allow for anonymity while still tracking the transactions. You can think of it as sending a message that someone reads, but that doesn’t reveal who has sent it and who it is being read.
All these features combined give cryptocurrencies an edge over traditional payment processing and money transfers, so why aren’t they already bigger than PayPal or Visa?
For example, the blockchain ledger is stored on every user’s computer, making it very transparent and Decentralized Finance. But this also means that old computers might not be powerful enough to run the software, leading to “forks” of the original code with different rules resulting in other blockchains. Programmers are currently working these issues out, but there is still some uncertainty until everything is sorted out.
However, the bigger problem lies with the fact that you cannot buy anything directly with cryptocurrencies (except for other cryptocurrencies), so for them to gain more value, people have to start using them as a payment method. Unfortunately, that is not possible due to the relatively slow transaction processing times and lack of convenience in most currencies.
For example, you cannot walk into a store and buy something by scanning a QR code from your phone – even if that merchant accepts cryptocurrencies as a payment method, they would have to cash out to regular money or pay high fees. Learn more here at crypto-profit.
Why would merchants even want to accept cryptocurrencies?
The main reason is that it gives them an edge over their competition. In addition, bitcoin transactions are irreversible and offer meager fees, making them very appealing for merchants. On the other hand, with credit card payments, you can always reverse a transaction if it turns out the item was never delivered or wasn’t as described.
Another reason is that cryptocurrencies are maturing very quickly, and keeping your coins in a wallet for a few years might bring some great returns later on, which would be great for merchants. There are already businesses that accept Bitcoin, and some even do so exclusively.
Finally, it’s also worth noting that cryptocurrencies are currently unregulated in most countries, meaning that they can be used without any legal repercussions (unless you get caught cheating people, which still carries a penalty). However, the lack of regulation has made cryptocurrencies famous for illegal dealings and ransomware payments, so the governments might step in to regulate them sooner rather than later.
What’s the consensus regarding cryptocurrencies? Are they just a fad, or is their popularity going to grow?
The answer is that nobody knows for sure, but one thing is clear – you should get in on it while prices are low!
As with most new technologies, there are some kinks to work out (mainly due to high prices and volatility), but the potential is there. Cryptocurrency trading bots are already prevalent among experienced traders, so if you’ve always wanted to try day-trading without having to stare at charts all day long, an online brokerage might be just what you need.
The biggest issue with investing in cryptocurrencies is that prices are volatile, and it’s challenging to get information about them. You can, however, use a cryptocurrency price checker to make sure you get the best value for your investment.
