By Dan Miller, payments officer in the Australian banking sector and contributor to Bizzmark Blog, a business journalism website.
Even though it is clear that cryptocurrencies bring a ton of benefits to the table like lower transaction fees, immediate settlement, and the increased access options, there is still one significant downside to them. We are of course talking about the lack of trust between the users and a digital currency. Although we saw that the traditional centralised currency system has many inherent flaws and although 97 per cent of all money exists in the digital world alone anyway, people still have a hard time placing their trust in cryptocurrencies. With this in mind and without further ado, here are three major reasons why you should trust digital currencies.1. It is much more secure
While a lot of people fear the idea of their money being stolen from their wallet by hackers, the fact is that most experts agree this is not as easy as it sounds. In fact, it is much more likely that someone will steal your wallet in person or find a way to exploit your credit card. According to recent studies, 46 per cent of people in the US had encountered a credit card fraud at least once in their life. Moreover, there is a figure of 50 to 60 cent being stolen for every $1,000 spent. On the other hand, when it comes to digital currencies, numbers are nowhere near this figure. Sure, one of the reasons behind this is a fact that the digital currency market is a much smaller target, however, this still goes in your favour.
2. Protecting your identity
One of the comparisons that most people use when trying to describe a way in which digital currencies protect your identity is to compare them to cash. Actually, they function in a very similar way. You aren’t required to give out the information about your credit card to a merchant you just met and in this way expose your full credit line to them. With the alarming stats we mentioned in the previous section, this idea becomes even more important. Of course, a lot of people possess more money on their credit card but those who have decided to trade Dash for a living are provided with a much higher level of protection than their counterparts who still trade in traditional currencies.
3. Your money is not losing value
Another thing you need to keep in mind is that the issue of inflation is definitely not something you should underestimate. The longer it stands in your account the less it is worth. You see, just 17 years ago, on the dawn of the new millennium, a dollar was much stronger than it is today. In fact, $10 in 2000 equals $14.35 in 2017. On the other hand, when it comes to the digital currencies, they are much more resistant to inflation. In fact, Bitcoin is designed to be more or less immune to M0/MB inflation due to the fact that there is a cap on the amount in which they exist. This being said, once the cap of somewhere about 21 million coins is reached, no new bitcoins are being issued.
As you can see, digital currencies protect your assets not just from money and identity theft but also from issues such as an inflation. While it is true that not even digital currencies can boast in being 100 percent secure from fraudulent behavior, their resilience is quite admirable. When you combine this idea with all the other advantages they bring (some of which we have mentioned in the introduction), what you get is a full picture of just how superior this form of currency is to its traditional counterpart. This being said, it is more than evident that digital currencies (and crypto currencies like Ethereum and Bitcoin in particular) are the way of the future.