There are many people who are still debating the utility and the very existence of cryptocurrency. Some people have invested heavily while some have stayed far away from this digital currency. Irrespective of personal opinions, one thing is very clear, cryptocurrency is here to stay. If you aren’t on the crypto bandwagon already, you might end up missing out. The worldwide number of people who use crypto has gone up from 2018 to 2022. Both the private and public sectors are considering the idea of adopting cryptocurrency and using it to further make financial transactions easier and more inclusive.
What started as blockchain technology, has turned into a financial ecosystem that is increasing and thriving. If you want to be a part of this, you can get trading today. And all from blockchain games available online to crypto art, the possibilities are endless. Start by creating an account on one of the best exchange platforms of India, CoinSwitch. You can download the app and finish your KYC to get trading. Add money to your wallet and start trading. Mark the cryptocurrencies you wish to invest in and follow the pattern and invest as soon you think it is the right time.
The beginning of Decentralized Finance
Can you imagine what would happen if you are in a new country and you do not have a bank account that is accessible and you need funds? At such times, cryptocurrency can be a blessing. The requirement for a transparent and free financial system has been felt for a long time. There are many people who believe cryptocurrency is gaining popularity due to the ease of borrowing, lending, paying, and so on. The utility of cryptocurrency is, in turn, causing the value to rise which is making it a successful investment too. The decentralized finance created using a blockchain offers more financial services, with higher financial security. It fulfills all the needs of a financial system while offering freedom and credibility to users.
Various uses and modes of cryptocurrency
Cryptocurrency is a multi-faceted asset. It has been called digital gold because just like gold, it is a medium of exchange, and has store value after a while.
- Privacy – Unlike a bank transaction, your identity can remain hidden and you can perform a transaction anonymously with cryptocurrency.
- Payment – Cryptocurrency can be used in place of fiat currency to make payments and avail of services and buy goods.
- Investment – The total number of tokens of most cryptocurrencies is limited and that is why the price of crypto increases and you can buy and store these away and wait for the perfect time to trade. For example, the BTC to INR value at the end of February 2022 is 28,61,651 rupees. This will go up in the future as the number of Bitcoins is limited and there are a few million yet to be mined.
- Stablecoins – Cryptocurrencies can be attached to commodities such as gold, oil, or other currencies like the USD. There are stablecoins in place that are already in use like the USDC.
- Digital access – People who have no or limited access to conventional financial avenues like banks, get access to funds and financial management options.
Government policies and laws
You can tell the difference between a trend and a permanent feature by gauging the response of the government. The establishing of laws, rules, and regulations to navigate the financial implications of cryptocurrencies is a sign of permanence. It means that both the private and public sectors are inclined to include crypto in their functioning. The tax regime proposed by the government for the coming years is a sign that cryptocurrency is here to stay and it isn’t just a bubble or a scheme.
Banking benefits of cryptocurrency
- Privacy – The level of security is high, however, in case someone from the outside is looking at transactions, they will not be able to make out the information and this stops it from falling into wrong hands and all the data is inaccessible to unauthorized personnel.
- Security – Transactions carried out using blockchain cannot be modified or duplicated. The transactions are transmitted in high security networks and even though they can be traced for proof, it is only possible through proper channels. The high level of security is why smart contracts are so popular and the fact that the terms and conditions cannot be changed makes it a perfect choice for enforcing a contract.
- Efficient alternative – There are many people who do not have access to banks due to a lack of identification papers, insufficient infrastructure, proximity to an institution, or liquid assets. It is an essential asset that provides opportunities and access to people who do not have a choice due to circumstances.
Blockchain has already taken over the conventional financial system. While investing, be aware of the cryptocurrency you are investing in and decide accordingly. For example, Dogecoin to INR can sway any time, that is why review and consider where to invest your money. Do your research and every crypto you invest in should be considered separately. Be a part of the future of finance safely.