One of the most disruptive and controversial technological innovations of the decade has been the advent of cryptocurrencies. Since their arrival, cryptocurrencies like Bitcoin, Ethereum, and Ripple have changed the way we think about exchanging money. They’ve made big waves in the worlds of tech, finance, and politics on a global scale and their effects will continue to grow as time goes on. Here are some of the ways that cryptocurrencies will affect the world.
Improvement of Transactions
One of the main advantages cryptocurrencies have over fiat currencies is their ease of transfer. The process of sending Bitcoin to your friend across the globe has significantly less barriers than trying to send USD from your bank to theirs. Cryptocurrencies are also an extremely fast asset to move. Majid Mushtaq of Medium.com reports that when the cryptocurrency EOS was launched, it had a TPS (transactions per second) speed of around 3000. At the time, global financial services leader Visa was sitting at 1700 TPS. As blockchain technology advances, it will become increasingly faster and cheaper to transfer money across the planet.
A Stable Asset
Cryptocurrencies are not susceptible to the factors that cause fluctuations in the value of fiat currencies like the US Dollar. Inflation, political turmoil, national interest rates, and government debt are all possible causes that could decrease the value of the USD. Because cryptocurrencies are decentralized and not controlled by banks or any particular party, they are immune to these risks. As the adoption of cryptocurrencies increases, they will give the general population more control over their assets.
Safer Than Banks
In 2018, lifelock.com reported that approximately 60 million Americans have been affected by identity theft. In this same report, it was found that 33 percent of these cases were credit card fraud and that 12 percent of the cases were bank fraud. Due to the nature of blockchain technology, it is mathematically impossible to intercept and decode cryptocurrency transactions. In the future, cryptocurrencies will become the safest way to transfer capital.