What Good Is Cryptocurrency? [Detailed Guide]

What Good Is Cryptocurrency? [Detailed Guide]

Despite the fact that cryptocurrencies are generating a lot of attention these days, the real-world applications of these new technologies are frequently overlooked. Some argue that crypto has no place in this world. This is regrettable since it actually has a wide variety of uses. If you are wondering what good is cryptocurrency then you should know that there have been a lot of technological innovations because of it. Let us find out why is cryptocurrency good.

1. Directly transfer digital payments

The simplest example of the usage of crypto currency is for direct digital payments. While we can assume that everyone makes payments online, the reality is quite different since not everyone has access to a bank account. Our current system relies on third-party payment systems to facilitate centralized crypto exchange. These systems are prone to cyberattacks or government restrictions. This is not the case with cryptocurrency. If you are wondering why is crypto good then you should know it is good for direct digital payments.

Read: How Long Does A Bitcoin Transaction Take? [Detailed Guide]

2. Secure store of value

Since cryptocurrency does not need to depend on a third party as a medium of exchange, users are empowered to take control of their finances. They can only be made when a user approves their transactions with a private key. They need to approve each transaction manually with a unique key which gives them entire control on how they spend their money. This is an important aspect when users cannot trust their governments with their money. For example, when inflation happened in venezuela, individuals lost their assets through new laws as well as inflation. Hence now you know why is crypto good. With cryptocurrency, individuals can purchase secured values which are not in control of the government. 

3. Management of microtransactions

Eliminating the middleman removes threats but also reduces the transactional costs as users can send money to each other directly. This way they do not have to deal with third-party fees. A perfect example is microtransactions where users can make the smallest transactions of even a few cents.

Well crypto also makes metering that is a special type of microtransaction easy. Instead of paying a unit price, microtransactions through metering allows the users to access services for an unlimited time. For example, wifi access. For now, if users wish to purchase public wifi, they have to pay a fixed amount for a fixed time. This is not the case with metered microtransactions. 

Read: Forks, Alt-Coins, Meta-Coins, And Sidechains | Detailed Guide

4. Smart contracts

If you are thinking about what good is cryptocurrency then you should know that it is a type of programmable money. Is cryptocurrency good? Yes. This is because they include capabilities for scripting which enable users to make complex transactions. This is known as smart contracts. Why is cryptocurrency good is because these elements of exchanges are entirely on a digital platform. These smart contracts can be deployed at any time round the clock since it is entirely digital. Protocols can be enforced through digital platforms such as law, rentals, supply chain management, etc. Hence, now you may know what good is cryptocurrency. 

5. Extra-monetary applications

For users wondering what good is cryptocurrency, they should know that the cryptocurrency offers a very great expanse of applications that are currency based that the traditional currencies cannot. Why is cryptocurrency good is because they are open blockchain networks. Blockchain tokens represent real money which can be directly transferred from one user to the other. Even though it is all just zeros and ones at the end of the day, they are still entirely real. Why is cryptocurrency good is because blockchains are resistant to censorship from the governmental organizations. They are a digital blockchain which cannot be muted. However, this type of freedom and user empowerment is only available on open networks where cryptocurrency is a scarce token component.

Now you must have an idea why is cryptocurrency good. In the situation when the government is trying to censor the user freedoms, the public and other users can use cryptocurrency to navigate their way out of the corruption. However, this is not the only reason for why is crypto good. These types of digital blockchains can also be used for legal purposes where it can record legal applications as well as commercial applications. The digital blockchains cut down the need of a user to depend on the costly administration services and insurance. The developers are currently working on developing projects where dropbox can store the blockchain files of the user. 

Read: What Characteristics Distinguish A Good NFT?

Final Words

A brief examination of just a few of the best types of uses of cryptocurrency demonstrates that these latest kinds of innovations potentially provide benefits that the traditional kinds of currencies can never live up to. It is never a terrible idea to hold off on becoming engaged with the newer technologies unless the users are confident that they understand it completely. Even more when the technology is regarded as a financial investment. the best part about what good is cryptocurrency is that no one is forced to use them. 

Cryptocurrency enthusiasts spend ages developing and improving the latest cryptocurrency infrastructure so that more and more people get access to it and use it on a daily basis. At the end, the enthusiasts do not benefit from it, it is the user who gets inspired to use it. While there may be certain users who try to use cryptocurrency the wrong way, such as scamming, they are regularly outdated with the latest technologies being developed daily. At the end of they day, the users must use cryptocurrency wisely. Hope you have been able to understand what cryptocurrency is good for and learnt more about its versatile uses. 

Christopher Austin

Hello, I am Christopher Austin. You will mostly find me writing articles related to gaming on Techinerd. Providing knowledge that I have related to gaming to everyone is my passion and I love to do the same. Other then gaming, I also love to write articles on other technology related topics as well. Other than that, I am the digital media manager at Techinerd as well.

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