When cryptocurrency was first released into the financial marketplace, there were some who thought that it was just a passing fad that would not have a major impact on world finance. However, opinions quickly started to shift, and it was the rapidly expanding popularity of Bitcoin and its skyrocketing value that really made a lot of people sit up and take notice. What are the reasons behind the rise of Bitcoin? Well, the truth is that there are many reasons why its popularity has grown to such a high level, and we are going to discuss a few of them in the following blog post.
Transparency
The first reason why cryptocurrencies have experienced a boom in demand is their perceived transparency, which is in contrast to traditional forms of currency. They operate using a distribution ledger known as Blockchain, which allows information to be stored without a central authority controlling it directly. Transactions do not involve the direct involvement of banks or government bodies either. Everything is agreed between the payer and the payee, which is a different situation than the one you find in most standard financial transactions.
No Human Involvement
When it comes to slowing down financial transactions, it is often human involvement that causes a great deal of the slowdowns. However, people with crypto liquidity don’t have to worry from this perspective as human intervention is not required when it comes to initiating transactions and enforcing agreements. There is also a greater sense of freedom involved with regards to big corporations and government. While all transactions are traceable, they don’t have the same level of personal ID attached.
Stops Scammers and Hackers in Their Tracks
Another increasingly common issue that has related to standard currencies is the prevalence of fraud from scammers and hackers. One of the main advantages of cryptocurrencies has been their safety in not being the victim of attacks of this nature. The shared ledger nature of these currency systems means that data can be accessed by everyone, as well as being shared and updated on a second by second basis. All of this means that there is less of an opportunity to commit fraudulent transactions in the meantime. There is also the fact that once the transfer has taken place, it cannot then be reversed, which is not the case for standard credit card transactions. There is no possibility for third parties to then come in and interfere. There is no doubt that this added sense of security is one of the main reasons why cryptocurrency popularity has increased in a big way.
Elimination of Additional Charges
One of the biggest frustrations for consumers whenever they have been completing financial transactions online has been the inclusion of additional charges at various points along the payment journey. However, these have simply been eliminated when it comes to using cryptocurrencies, and this ability to move money around without paying is certainly an appealing aspect of this new form of payment.
