The field of Financial Technology, or Fintech as it is popularly known is a fairly new field in the industry. As a rule, any new concept has always put the humankind in a hesitant state, whereby many of us faced massive dilemmas owing to the kind of apprehensions we had about these new technologies, especially when it came to our finances.
Just like when the credit cards were introduced, people were very unsure of them in the beginning, but soon got used to it. Similar is the treatment that is meted out to the new and upcoming concepts of cryptocurrency and bitcoin.
While it may seem that this new and advanced technology, could possibly put the economy in jeopardy, but at the same time, there are many industry experts who are all in favour of the concept of cryptocurrency and eagerly looking forward to the kind of benefits that it will be able to offer the world of Financial Technology.
The most simple of definition of cryptocurrency, is that it is digital money. When we talk about the cryptocurrency economy, we talk about a closed, encrypted line of business network, which is 100% free from any kind of governmental supervision and thus is more of a peer to peer, independent network which is governed by similar internet protocol.
Here’s about 6 benefits that cryptocurrency can offer you
- Decrease the occurrence of frauds: As the cryptocurrency network is one which is fully encrypted but at the same time, it also happens to be a system which ensures the documentation of every action. So none of the cryptocurrencies can be reversed, backtracked or even counterfeited by anyone.
- No interference of third parties: Usually when it comes to any sort of financial transaction, it is imperative to have a supervisory, intermediate body as well as a legal presence and so on. But with financial technology coming in to the picture, the need for a third party when it comes to bitcoin transactions, will be completely eliminated from the picture.
- Lesser fees: While it is true that the elimination of a third party involved in the settlement, the money that the participants had to shell out for them would no longer be required. But at the same time there would be a need to pay the fees of an online platform which would make bitcoin transactions work together. Albeit with much lesser fees than charged by intermediaries.
- Accessibility: Did you know that today one in 3 Kenyans, is actually able to own a bitcoin wallet? Such individuals who are able to have access to smart phones and the internet, but do not have as much access to traditional cash, would be able to be involved in cryptocurrency.
- It will all be decentralized: There will be a major amount of decentralization especially when it comes to cryptocurrency. This is because it will be a network which individuals will be able to access as well as work on their own due to its peer to peer system.
- Universal recognition: Being a digital currency, cryptocurrency doesn’t not need to keep in terms with any exchange rates, transaction charges or anything like that of other countries. This gives it a great appeal in order to make use of it on a universal level.
So, thus although at its nascent stage, cryptocurrency sure shows a number of great opportunities and benefits for the future.