The role of cryptocurrency is increasing in global commerce.
- For ages, money has been driving trade and commerce. Now the use of cryptocurrency is increasing in global commerce.
- With an increase in internet coverage, online money transfers, digital transactions and government restrictions on international online transactions regarding cyber security, the use of cryptocurrency started because it was international and not under purview of any government.
- The acceptability of cryptocurrency is increasing in many countries and cryptocurrency is legal in many countries.
- Today cryptocurrency is being used in various kinds of legitimate transactions.
- Blockchain is making digital transactions safer which includes cryptocurrency transactions.
- Similar to stock trading, the trend of cryptocurrency trading is also growing.
- Cryptocurrency can be a boon for people without access to banking services.
- People are becoming aware of advantages surrounding cryptocurrency trading.
- Apps for converting cryptocurrency into fiat currency are also available.
In all types of trade and commerce, the use of money has been integral to operations over centuries ever since the concept of currency became an alternative to barter system. The way money became an alternative for barter system, cryptocurrency is on the path of becoming an alternative to money. Online platforms like PayPal and Fiverr eased digital transactions. In some countries, these platforms were subject to restrictions. For example, in USA, it is not compulsory for a PayPal account to be linked to a bank account but in India, it is compulsory.
When Euro currency originated, it provided a big boost to trade and commerce in Europe as it was acceptable in all of those countries that were members of European Union. Later, countries outside Europe also started to accept Euro in terms of payment when Euro became stronger than US dollar. The rise of Euro also dented the monopoly of US dollars and UK pound as dominant “internationally acceptable currency”.
The concept of cryptocurrency originated from the concept of online money transfers around the world and people sending money to anyone anywhere in the world, which at the same time were not scrutinized or regulated by government rules. Bitcoin and other similar cryptocurrencies were not controlled by any government.
In cinema, the use of cryptocurrency is shown to be a medium for payment for transactions that are deemed as unsafe, insecure, unethical or sometimes illegal. However, reality is far away from cinema. The role of cryptocurrency is increasing in legal transactions as many countries are legalizing the use of cryptocurrency.
Today, the concept of is evolving and it is not limited to cash or national/international currency. Today, many hotels are accepting payments in the form of cryptocurrency.
With increasing acceptance and usage, cryptocurrency is becoming an industry in itself. With increasing cyber security for online transactions via blockchain, it is becoming safer to deal in cryptocurrency with the exchange of the digital coin exchanges taking being supervised throughout the world more efficiently. The cryptocurrency industry is growing rapidly and its early adopters are becoming rich overnight, finding new opportunities to grow financially. Many countries that banned cryptocurrency did so because they did not have the means of regulating it and ensure safety in transactions made in cryptocurrency. Maybe the blockchain services in those countries are not available on a wide scale.
Earlier, stock trading was a source of income for many people. Now the trend of cryptocurrency trading is also growing. With the use of cryptocurrency increasing in commerce, the room for cryptocurrency in the global economy is big.
Many people all over the world do not have access to basic banking services and any kind of personal financial crisis such as loans can cause lots of mental agony and insecurity to them. People suffering from such crisis often seek money from unscrupulous lenders that turn out to be loan sharks. These people can be saved from taking steps of borrowing money if they are introduced to cryptocurrency.
With the increasing use of mobile devices for financial transactions, there are apps at smoothen the financial transactions in cryptocurrency and also make them safe when they are equipped with blockchain technology.
For people dealing in cryptocurrency and blockchain with regards to trading, there is no need for a physical office. They can work from home and save the money on rents, office electricity, and employee wages. Here, the environment is different from what you see in an office located in Wall Street. With transaction fees being low, cryptocurrency trading is gaining popularity in the scene of global commerce.
The credit of increasing transparency in cryptocurrency transaction goes to blockchain. Given the automated as well as digitized nature of blockchain and cryptocurrencies transactions, they can be tracked in a distributed ledger. Neither people can manipulate them, nor companies. This reduces the risk of fraud and corruption in these transactions. Hence, with the availability of blockchain, even in underdeveloped countries cryptocurrency transactions and boost their economies. This can also help citizens to keep track of the orientation of state funds.
Using cryptocurrencies also helps entrepreneurs to receive payments in more currencies and today there are apps that can convert cryptocurrencies into fiat currencies and apps to convert one cryptocurrency into another cryptocurrency are also available.
It is safe to say that with growing numbers and preference for cashless transactions, in the coming years, cryptocurrency can be integral to various commercial activities.