The Advantages Of Crypto-Currencies
Crypto-currencies are believed to be the currencies of the future. Such an ambitious statement isn’t just another trick of marketing specialists. The advantages of a digital currency are numerous; let’s put them out in layman terms understandable even to outsiders.
First and foremost, a crypto-currency is not subject to inflation. For instance, the exchange rate of Bitcoins depends directly on the pace and volume of gold production. One person can be the miner of no more that 20,000,000 digital currency units. A state, on the other hand, can increase the amount of notes in circulation, which may lead to a devaluation. Such a situation will never occur in relation to a crypto-currency, as there’s no organization or state controlling the system entirely.
An extremely important advantage is the opportunity to carry out transactions regardless of your country, geographical location, national currency and other parameters. Crypto-currencies are actually of international scale; they are equally available to all people across the world. Nowadays, an increasing number of companies are ready to accept payments in a crypto-currency, thus it’s suitable for purchasing various services and goods.
A distinctive and advantageous feature of a crypto-currency is the fact one unit is dividable into fractions as many times as necessary. For instance, one millionth part of a Bitcoin is called ‘satoshi’ (that’s what the creators of this digital currency call themselves).
From here derives another fact in favor of digital money. It makes microtransactions affordable for consumers, which is expected to result in global changes in the methods of Internet payments. Crypto-currencies enable firms and companies to collect payments for goods and services in a way that was previously considered impossible due to the need to transact excessively small sums. Commissions and fees charged at every steps used to make microtransactions extremely economically irrational.
On a larger scale, various agencies can to employ crypto-currencies to their advantage as well. They can charge small amounts of a crypto-currency for their services. For instance, it can be used as payment for parking services, which allows to avoid using cash or credit cards burdened with the bank’s immodest fees. Large-scale benefits of crypto-currencies are as numerous as the types of economic activity themselves.