Digital currencies or cryptocurrency is based on blockchain technology. It was believed to have great potential in disrupting real-world currencies and a lot more. Basically, blockchain technology is the backbone of virtually all cryptocurrencies you see in the market today. The reason why it is capable of disrupting multiple financial services is due to the fact that it has innate complex financial transactions and can reduce costs too – all this while it can augment transparency.
Broad Applications of Cryptocurrency
Implications of the said technology are far-reaching. This isn’t just felt in financial services but also, in several other facets like:
- Education and;
Whether you believe it or not, there are even some online casinos that are allowing the use of cryptocurrencies as form of deposits to their account. If you are playing in one already such as in judi online terpercaya, might as well want to check out their policies and if they are accepting such.
Benefits and Risks
As per experts, one of the notable benefits provided by digital currency is that, it is impossible for it to be counterfeited and all transactions can’t be reversed arbitrarily by sender. This is comparison to credit card chargeback. Furthermore, cryptocurrency transactions can offer anonymity to its sender, receiver and owner.
Credit cards on the other hand are operating on pull basis in which the store is identifying the transaction and then, pulls the amount of sale from the card. Meanwhile, cryptocurrency follows a “push” model transaction where it is prompting the holder to exactly send what they wanted to the seller without requesting additional information.
Yet another benefit of cryptocurrency is it isn’t bound by the exchange rates, transaction charges or even interest rates. Not only that, transactions involving digital currencies are taking place at same speed no matter where the receiver and sender are located.
It comes with Fair Share of Risks
Cryptocurrency is seen by many as another investment vehicle. And much like any other form of investment, there are risks that come along with it. Recommended by experts that prior to investing in cryptocurrency, risks like regulatory intervention and price volatility should be taken into consideration.
Price volatility will be an ever-growing issue in digital currency. After all, it is representing a new breed of currency. For this reason, investors ought to expect volatility and at the same time, price swings as the market is starting to develop. While cryptocurrencies have seen massive growth, they remain to be a small part of global finance hemisphere. Both policymakers and regulators keep monitoring digital currencies in determining potential impact to broader systematic or financial stability risks.