The World has seen several recessions, but the one we experienced in 2008 was indeed a terrible one in the most recent history. The lessons we learned, changed the face of online transactions forever. The central banks and their regulatory policy all over the World happens to be one of the core reasons as to why the great recession occurred in the first place. The greed of centralized policymakers and regulators lead us into a pit.
If you belong to a financial background, you must already be aware of what really happened that year. In order to cut down the risks or at least diminish them, we desperately needed a decentralized model of currency.
Let’s have a look at a couple of reasons as to why it is so important to pursue crypto.
If you think that inflation happens on its own, you are gravely mistaken. This is a result of the centralized banking system, typically in Third World countries where the banks inflate their respective currencies in order to escape the financial storm they are going through. However, the scenario is totally changed with digital currencies since the only controlled factor is the maximum production of coins in the network. Everything else is decentralized and happens purely on the basis of liquidity of transactions.
It is not only the problem of Third World Countries. Even in the United States, we often hear that certain products or niches are undergoing inflation and the reason is exactly the same. Therefore, digital currencies play a pivotal role to thwart the unprofessional activities of banks to cause inflation, by keeping everything decentralized. Once the system is running, no one has the ability to alter its functionality.
Fraudulent activities have always been the focal point of concern for organizations and individuals involved in monetary trading. Even in online banking, the risk stays there. However, ever since the launch of cryptocurrencies, the problem is diminished to a significant extent. This is solely because the network maintains a public ledger that keeps a record of all the coins spent and their traders as well.
Moreover, the traders are also skeptical for a possibly fraudulent or opportunist behavior on the part of governments and that is also quite strictly taken care of in cryptocurrencies because the entire currency is decentralized and the control is not restricted to a focal person, government or organization.
Eliminates identity theft
This is yet another great concern for individuals. Even if you are not a regular trader, in traditional banking and e-commerce, the possibility of identity theft is reasonably higher if we compare it with cryptocurrencies.
Since there happens to be a public ledger in digital currencies, we can always track the sum of transactions that occur between all the wallets on the network. Moreover, there is also a system to verify that the coin being spent by a specific user, let’s say person ‘A’, is owned by him or her prior to spending. This verification ensures that an optimum level of security and transparency is maintained at all instances, regardless of how complex or dense the network becomes.
Absolutely zero chargebacks
It happens to be a nightmare for traders, especially online traders. Chargebacks occur when your customers purchase a product or pay for a service and after availing that for a certain period, demand a full return. Since this return is demanded from your credit card company, you have no chance of stopping it from happening.
Due to the decentralized nature of cryptocurrencies, your customers are not facilitated to incur an additional cost of doing business on your end by claiming chargebacks. As soon as you receive the payment, that transaction is closed and recorded in the blockchain.
However, as an honest professional, it falls on your shoulders to return a reasonable sum of money if you fail to deliver what you had promised in the first place. Rest assured, no one can ‘grab’ your money from you. This is particularly important for thwarting client-side fraud.
Diminished transaction fees
It is quite rational to understand that the use of credit cards has boomed in the last ten years and the primary reason for this aggravated development is because the feasibility is quite extensive. However, the banking system does not offer such a lucrative service without incurring heavy taxes and if you look at it carefully, that is exactly what’s been happening in all these years. In most of the cases, these taxes or rather service charges are payable in percentages and range within two to five percent of the transaction.
However, in digital currencies, especially the ones that are sprouting nowadays, the transaction fees are lowered to a great extent and in some cases, you do not even have to pay anything.
Well, not everyone is concerned about this benefit, but if you operate a large scale business, you do need immediate receipts for transactions in order to take an action. There might be serious delays in conventional banking, but with the advancements offered by cryptocurrencies, both parties get their receipts as soon as the payment is confirmed after block confirmations.
Even though credit cards have cut off tons of hassle for mainstream users, it still happens to be a security risk for their personal details. Therefore, if you accept payments in digital currencies, you won’t have to store their data on your server (that could be hacked at any instance).
By implementing this procedure, your customers enjoy an utmost level of discretion and you remain safe from getting overwhelmed by liabilities. It ultimately results in an embellished trust rating.
If you are thinking on a long-term basis, it is very important that you plan for efficient scalability. In layman’s terminology, it simply means adding more customers and prospects into your pool and prospering the possibility of earning more cash.
Digital currencies are not geographically bound. Therefore, if you start accepting any one of them on your site, let’s say the HIGH token, you are giving everyone in the World a chance to do business. Moreover, this robust solution also allows you to get over the major problem of economic fluctuation in any given area.