We have always known that Cryptocurrency is the future of financial spending and tracking.However, after Tesla's $1.5 billion investment into Bitcoin, will this speed up the trajectory of Crypto being widely accepted a payment method?
What is Cryptocurrency and the benefits
Simply put, Cryptocurrency is a digital form of currency in which every transaction is documented in a digitalised ledger. This means that every occurrence between the use of these digital files (crypto) is securely recorded, allowing a whole transcript of how the crypto has been used and transferred.
The main benefit for Cryptocurrency is that not only does it use cryptography to store the information securely, but since cryptocurrencies are held under decentralised control, there is no one unit, group organisation that dictates the control over the currencies.
Another benefit is that it can be used in economies where the currency is experiencing hyperinflation, as well as a more secure method than a bank in these situations.
Cryptocurrency also allows a secure and faster transaction when payments are being made internationally.
Disadvantages of Cryptocurrency
Unlike standardised currencies, which is directly linked to the rise and decline of the economy, cryptocurrency has the potential for big fluctuations in its’ value. After all, Cryptocurrency is a method of transferring a value, which means it has the potential to be exponential and volatile.
The reason for this is due to not only the demand of the Cryptocurrency but also the availability of those who can mine it. This is why Cryptocurrency isn’t widely accepted by mass organisations such as retail from a consumer perspective.
However, as society moves forward becoming more digitalised than ever, with a need for greater transparency, ownership and security, the move to widely using cryptocurrency, or integrating it within regular societal use, is closer than we think.