It is non debatable that individuals perceive digital currency to be the safety of future money. A cryptocurrency also known as “crypto” is a form of digital currency that can be used to purchase goods and services, but uses an online ledger with strong cryptography to protect online transactions. Therefore, individuals, financial institutions and governments should embrace the use of cryptocurrency such as bitcoin as they have profound impacts on financial systems. The benefits of cryptocurrency have inspired the creation of several fintech platforms to adopt or explore the replacement of cryptocurrency in place of fiat money for economic transactions. Indeed, none can disagree that the trust erosion in the financial sector that was weakened by the events of the 2007/08 financial crisis, particularly in relation to banks has encouraged the use of cryptocurrencies such as Bitcoin as an alternative form of (private) digital money.
Therefore, people should use crypto currencies as they provide significant benefits by overcoming the lack of social trust and by increasing the access to financial services. Through block chain technology, cryptocurrencies combine important properties to foster trust, such as transparency and accountability, which allows trust free interactions between counterparties. The underlying block chain technology uses hash functions, consensus mechanisms and public and private key encryption to control transactions, which ensure that the users don’t have to trust one another.
Another advantage of the decentralization of crypto currencies is that there is no government or banks regulation. Thus, crypto currencies are not delimited to a specific geographic area and can be traded all over the world. Most cryptocurrencies have been created with the objective of being borderless and frictionless. Therefore, people should adopt such type of digital currency including the bitcoin as they empower a common man in a way that they can conduct individual to individual transactions all around the world instantly without paying heavy charges to banks. Researchers have revealed that bitcoins can be used to provide low-cost money transfers, particularly for those seeking to transfer small amounts of money internationally, such as remittance payments. Beyond no doubt, the main efficiency of cryptocurrency is the elimination of intermediaries and the reduction of transaction cost.
Cryptocurrencies are the real deal as they have greater security, privacy and integrity due to their cryptographic software and distributed ledger technology with irretrievable and immutable transactions records. Therefore, in the face of global uncertainty, buying bitcoins is an effective way for people and businesses to diversify their assets. People should trade in bitcoin as it is safe and uses public-key cryptography for security. In fact, amidst the global coronavirus pandemic, and geopolitical power shifts, banks, people, and governments should view bitcoin as better alternatives to dollars.
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