What are cryptocurrencies and what advantages can they boast nowadays compared to traditional money?
In today's rush around the ICO, we often forget about the benefits that cryptocurrency can bring as a long-term investment. On the Internet, you can find a lot of tips on investing in a particular coin, and they are not always of high quality. Digital currencies have a number of important advantages over traditional money and popular financial and physical assets. What is the reason? The fact is that cryptocurrencies solve numerous problems related to the centralized nature of paper currencies and other instruments. In the cryptocurrency world there is almost no inflation. However, to some extent, it is still present, since it is needed for financial incentives for miners who mine blocks. The most important thing is that the inflation rate is known and is not hidden by anyone. In the case of the banking system, the inflation rate is unknown, and central banks can print any amount of money without coordination with the public. This is one of the main reasons why cryptocurrencies are gaining more and more supporters.
Cryptocurrency money transfers know no boundaries. Being geographically in Thailand, you can work for an American company. In this case, getting money from another country can be very difficult. But now there is no such problem: cryptocurrencies do not recognize borders and can be transferred from point A to point B in a matter of seconds. Another positive point is transparency. It is impossible to deceive this system or do something so that others do not know about it. That is why, although some attackers managed to use the loopholes in Bitcoin and Ethereum, such loopholes were quickly closed by the joint efforts of developers and the community, thanks to the fact that all network participants could see what was happening.
If you need to send money to a recipient located in another country, you will understand that cryptocurrency is the best option. Regular money transfer is not only expensive, but also requires the filling of a mass of related documents.
Unfortunately, cryptocurrencies also have some drawbacks. There are difficulties with scalability. And they need to be solved in order to be able to attract additional users to the ecosystem. The developers are already addressing this issue and have proposed a number of solutions. In our time there are no unsolvable problems.