Cryptocurrency - The Hero encouraging Globalization

Cryptocurrencies have grown and expanded significantly over the years. In a span of merely five years, a number of Digital assets have emerged in the global financial market system.

The popularity of cryptocurrencies has increased marvelously and is affecting the world economy. Even though it is still not accepted as a legal medium of exchange and is still to reach the mainstream market, it is having significant effects worldwide.

Let us briefly analyze a few ways in which the virtual currencies have stimulated Globalization.

1) Global Transactions Sans Documentation

The biggest and the most eminent benefit of cryptocurrency lies with international (global) payment transfers. Using cryptocurrencies for international remittances (the Money sent back home by workers living abroad) provides a big advantage as the average fee using traditional banking services is as high as 9%, which is not the case with virtual currencies. As such migrants are utilizing cryptocurrencies so as to curb the transaction costs and also, it allows transfers without long and tedious paperwork. Crypto-assets also, remove the risk of credit card frauds.

2) Speedy Transfers

Cryptocurrencies are making international payments and transfers easy, secure, hassle-free and fast. Individuals and companies are finding the utilization of these digital currencies beneficial as the transactions are done almost immediately without any hefty documentation.

Unlike the traditional banking system, cryptocurrencies are specially developed to provide security guarantees and credit conveniences without any extra fees, taxes, and delays.

3) The power of Decentralization

Cryptocurrencies work on the very efficient Blockchain technology and are based on a peer-to-peer network. This implies that no central authority has any control over its transactions or no third-party intervention is entertained. The transactions take place on a public ledger and are available to all the cryptocurrency holders.

However, the bank transactions are controlled and regulated by the central authority of the country.  As such the decentralization provides an upper hand and allows people across the nations to make transactions fair, easy and fast, without losing the value of the product in currency conversion.

4) Accounting for a huge population.

The accounts maintained by different banks (local, national and international) are not stored in a manner that can be compared easily. It becomes a difficult task to dig out proper and accurate information from the scattered records.

However, since cryptocurrency transactions are registered on a public ledger from the day the transaction of a particular cryptocurrency has started, it becomes easier for comparisons and measurements. Also, it provides a high-end transparency, thereby reducing risks of illegal uses and fraudulent activities.