The properties of cryptocurrency were not understood when Bitcoin was released, but people have familiarized themselves with them. Cryptos have three fundamental properties – decentralized, trustless, and immutable. But we need to go in-depth to find more stuff that make cryptocurrency so useful. The applications of Bitcoin and other cryptocurrencies have yet to be explored. The feasibility is low until crypto becomes fully functional in practical life.
Unique Characteristics of the Cryptocurrency
If you view cryptocurrency with a greater focus, you can know its properties and worth better. It will help to know whether this money could solve everyday problems of finances. The following features bring more clarity on this issue:
Peer-to-peer:
This characteristic of cryptocurrency is unique and has critical advantages of easy adaptability, quick transfer, and reduced costs. The blockchain technology supports peer-to-peer transactions.
Anonymity:
This characteristic relates to blockchain technology and very useful for the users. One cannot maintain anonymity in fiat currency transactions that are done through a banking system. No one wants that others should know about his money. When an outsider knows about some marketing, he can attempt to steal the money, but anonymity is one of the security aspects of cryptocurrency.
Cryptography:
It is an encryption technology used in cryptocurrency transactions. Cryptography is another security aspect that provides confidentiality and authentication to prevent unauthorized access and to protect information.
Virtual existence:
This characteristic significantly reduces costs, and thus transaction fees are lowered to a great extent.
Immutable:
Cryptocurrency transactions are safe as they are recorded on the blockchain. They cannot be reversed. A sender cannot stop or take back money once it has been sent and verified.
Single spending:
A person having Bitcoin or some other crypto coin cannot spend it twice. It cannot be counterfeited to use for two different transactions.
Trading:
It is the same feature as fiat currencies that are vastly traded on stock and forex exchanges. Bitcoin is traded on a particular crypto exchange or other trading platforms.
If you study the above features thoughtfully, you could conclude the practicability of cryptocurrency. If you consider its trading feature, you will start liking this currency for your future investment. bitql appto know how you can enjoy the benefits of crypto trading.
Defects in Fiat Currency
You overlooked the shortcomings in fiat currency after many years of use because this money is pleasing you.Comparing the features of cryptocurrency with the fiat currency, you can check the defects in the latter.
- You don’t have control over money. You make efforts to earn money, but the government decides the value you get for your efforts. Inflations are not a natural phenomenon but fabricated by the government to take a portion of your money back. A government has the power to demonetize and force you to put all your wealth into the trash. Cryptocurrency is the only money you can control on your own. Even the government will not come to know how many Bitcoin or altcoins you own. The government cannot demonetize cryptocurrency because it is not a legal tender.
- Constant devaluation of fiat currencies makes their value lower than the face value. It means that governments also fail to fulfill a paper-thin promise. You can’t get commodities of the same amount as you pay for them. It is the worst scenario than swap, the most primitive type of money.
- Fiat currencies are paper currencies and difficult to store. Where can you accumulate your enormous wealth other than in the bank? It would help if you had a large vault, but that has a risk of a break-in by the robbers and thieves. Cryptocurrency is secured in the computer networks.
- Paper currency has no value if damaged or destroyed by fire or natural calamities. It takes years to build, but a few seconds to become useless paper. You cannot ensure your unaccounted wealth. A cryptocurrency is not affected by any means.
Wrap up
You have no way to plug the holes in real money because you own money, but don’t control it. Alternative money can solve the problem. Cryptocurrency has been designed as pure money that can be trusted, if nor now, but any time in the future.
