Introduction
We all know how cryptocurrency is a medium of exchange in a digital format, unlike traditional currencies like euros or dollars. They use encryption techniques to control the monetary components while studying the money exchange network. It took a little time for everyone to grasp the understanding and potential of crypto. But as things started to unfold, experts now see it as a revolution that will impact the world financial banking system. So how does crypto gain this power, and what future can one expect with it? We will dive into every little detail and describe how crypto can bring a turn in financial aspects.
What Makes Cryptocurrency So Unique That It Brought A Major Impact Worldwide?
Before we jump into the ultimate benefits of blockchain, allow me to brief you a little about how it works. There is a dedicated network of computer operations that carry out cryptocurrency transactions. They work in the backend, similar to the central bank. Now, let us understand why people got biased towards this new format.
- There is no third party involved in cryptocurrency. They exclude intermediaries within those systems. Whereas in conventional financial transactions, apart from the sender and receiver, there involves a third-party organization, most of the time a central bank. In the case of India, it is the Reserve Bank of India. Their role is to check that the transaction is genuine and there are proper records maintained for the transactions. But when it comes to crypto, they store all transactions in crypto wallets.
- The process of money transfer is cheaper and faster through cryptocurrencies platforms. Gong through the traditional methods, you will have to wait for a long time to confirm that they have transferred your money. While here, the blockchain that is handling the coin can transfer the data from one party to another. Along with recording and confirming the transactions at the same time. It saves a lot of time and chaos.
- People discovered that cryptocurrencies are more reliable as long-term investments. They noticed how it has a continuing store of value even for the future. There is a difference between fiat money and crypto regarding its supply. Cryptocurrencies have a limited supply, capped by mathematical algorithms. Hence, no political body or government agency can dilute its value through inflation.
These were some of the reasons why people have expectations from crypto to bring a modification in the financial world. According to market capitalization, Bitcoin is the largest and best-known cryptocurrency for now. The successor in line is the Etherium.
Can Cryptocurrencies Remain Stable In The Future?
To answer this question, we have to reflect on the history of blockchain. The idea was to create an accounting world where one can record all the value of money and transactions in digital format in an open ledger. This ledger was supposed to be publicly accessible to everyone. However, every transaction that it contains is in encrypted form. In simpler words, blockchain is the ledger, and with the inclusion of more and more such transactions, it would get longer and longer.
Now that you are aware of the purpose behind the invention, you can grasp the below points that talk about how it will keep its position in the future.
- Several financial services industry deals with millions, billions, and trillions of dollars worth of transactions daily. For them, blockchain is like a support that helps them spot the inefficiencies and loopholes in the current system. Moreover, as discussed before, they are cheaper, faster, and can quickly record transactions. It motivates the industries to use and promote the concept of cryptocurrencies. And people do listen to and follow the opinions and actions of major financial companies and organizations.
- Please note that blockchain has a tamper-proof technology. In other words, it is almost impossible for anyone to alter the records as crypto discourages nodes from doing so. This quality of the blockchain gives it the potential to break down the transaction costs and timelines significantly. They work more on boosting transparency and security rather than qualities that will negatively affect the financial aspect of their customers.
- As we are talking, other financial services companies across stock markets, banks, asset management, and insurance are already experimenting with blockchain projects. Please note that blockchain offers gains in efficiency, transparency, and security that are much more valuable to these organizations. Hence, the moment it came to the market, these companies started testing it. And some of them have made millions and billions through it. So when it came to light, people could put their faith in it, which boosted its growth.
These were some of the reasons that make it seem likely that crypto has a better future than now. The fact that it can do quicker settlements in stock markets, simplify payments, increase accuracy in asset management, and so on is proof that they are working on every loophole we feel in traditional currencies and transactions.
How Can I Use This Platform, And What Are The Issues That I may Have To Face?
In order to invest or trade in cryptocurrency using Indian Rupee, you have to register to any exchanges or trading platforms. Newbies have to fill in the account details after registering. The purpose is to transfer money into the wallets provided by the trading platforms for buying cryptocurrency. The alternative of the same can be your e-wallet or net banking. This virtual trading wallet is secure as it has a unique address for every user. The address code is a random combination of letters and numbers similar to the PAN number.
Addressing the big issue, as per the RBI directive, banks cannot access grand to carry out virtual currency transactions from their system. Except for the State Bank of India, many large banks have not allowed their customers the infrastructure to trade or invest in cryptocurrency through their system.
The best solution is to rely upon the e-wallets operating in India. Deposit money in cryptocurrency trading platform wallets like WazirX or CoinSwitch only through MobiKwik. After depositing the money, all the buying and selling transactions will be in your trading wallet.
Conclusion
Cryptocurrencies are rapidly changing the nature of money itself. We all know how crucial it is to keep growing with the changes revolving around us. And the financial sector is no exception either. The whole functioning and intent behind the blockchain are to eliminate the struggles we feel in the current finances. With high data security, transparency, cheaper and faster processes, it got the boost it deserved. We can assure you that the upcoming time period of crypto will be more massive and functional than it is right now. Gradually, you will see it moving into the sectors that are still restricting themselves to the traditional methods. Hence, there can be no better timing than right now to invest in crypto and be a part of the developing future.
If you want to know how to buy a cryptocurrency, we will quickly brief you. There are two ways for it, first, mining new cryptocurrency. Second, buying it from the currency holder who is willing to sell it. If you go through with the second option, you can either have peer-to-peer transactions or through crypto exchanges platforms. In India, the most favorable option is to buy or sell cryptocurrency through online trading platforms. Check the authenticity of the trading platforms before carrying out the transactions! Some leading trading platforms are WazirX, CoinSwitch Kuber, CoinDCX, Giottus, Zebpay, Bitbns, etc.
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