Cryptocurrency- A Digital Alternative Currency To Make Online Transactions Go Smoothly
The size and shape of online shopping are changing rapidly in different ways in which the use of cryptocurrency is extremely epidemic. Cryptocurrency is a digital cash which uses cryptography to make the financial transactions and manage the development of extra currency systems easily.
While using this currency, users and companies generate tokens to verify the transactions they make. Presently, there are around 500 brand-new cryptocurrencies traded every day with Bitcoin, blockchain, ICO, and etherum leading the way. It is seen has an alternative to traditional fiat currencies, such as the US dollar, Euro, British Pound, etc.
How is Cryptocurrency helpful?
For Ordinary Consumers
- To make purchases in different countries, one has to exchange currencies and pay high transaction fees. With Cryptocurrency, you enjoy the convenience and decreased cost of using the digital currency all over the world. It helps you to make small, medium, and large-scale cash transactions smoothly and quickly without seeking the approval from different government agencies and financial organizations.
- Your transactions remain unknown. So, your sensitive financial and personal information is fully protected. It abolishes the cases of identity theft/misuse up to a great extent.
- All those companies and financial organizations that accept payments through cryptocurrency, don’t ask for transaction amounts from their customers. Instead, they grant some perks to frequent customers.
- D. Cryptocurrency is easy to use. Just go to your digital wallet on your smartphone/computer/laptop and start making online transactions without facing any hassle.
For Companies And Business Organizations
- Cryptocurrency service providers and business organizations, both, have only mutual exposure. The cryptocurrency service provider will add companies to their list of clients/vendors/customers to provide them the requested service. In return, companies and business organizations will acknowledge the fact that they accept service from them.
- Cryptocurrency is more effective and affordable when companies make international transactions as it is not associated with any specific government of the world, law enforcement agencies, and their related fees.
- As the information is shared only between two parties while making a transaction, so the personal and financial information remains protected and aloof from unauthorized access.
What Are The Main Factors That Regulate The Use Of Cryptocurrency?
In spite of a sharp boom in the use of cryptocurrency, its journey as an alternative financial currency has not been totally trouble-free. Many people argue that its performance has been hyped unnecessarily in the media since its introduction back in 2009. So, before using this digital currency, one must know the factors that control its flow globally:
- Government Regulations
Rapidly expanding cryptocurrency market encourages people and companies to use this digital currency and enjoy its benefits. But, wait for a while! The currency is facing many challenges put forward by the governments and law enforcement of different countries. Just have a look at the chart to understand the legal status of cryptocurrency in different countries:
|Country||Legal status||Additional Information|
|China||Prohibited for companies. Individuals are allowed to use the cryptocurrency.||On December 5th, 2013, China’s Central Bank prohibited companies/financial institutions from
making Bitcoin transactions. Private parties and individuals can use Bitcoin legally.
|Russia||Prohibited||In, February 2015, Russia banned the use of Bitcoin for making transactions|
|Iceland||Prohibited||As per the directions of the Icelandic Foreign
|Acceptance of Bitcoin ATM|
|Taiwan||Prohibited||Transactions are declined|
|Action against Money laundering &
unlawful financial activities
|Singapore||Companies need to identify customers and report suspicious financial transactions to the law enforcement agencies|
|USA||Information related to suspicious transactions are collected and reported to the federal government.|
|USA||You are supposed to meet your tax liabilities.|
|Japan||Tax is collected when you make transactions using Bitcoin. But, Banks and securities firms are not allowed to make Bitcoin transactions.|
|Israel||Unclear||No government policy so far|
|India||Unclear||Currently, Cryptocurrencies are not regulated. Central banks or monetary authorities through Bitcoin|
- Public Trust
Cryptocurrency is gaining public acceptance in different countries of the world. However, there are still a large number of people who are skeptical about the use of this currency largely due to its volatility. In average, its users are increasing rapidly with each passing day.
Just see the following chart how Cryptocurrency works:
|Repurchasing after 6-month||Repurchasing after||Repurchasing after||Repurchasing after||Repurchasing after|
(Note: Estimated calculation, the actual rates of the currency varies daily depending on the demand and supply)
So, What’s The Final Take Away?
Cryptocurrency has both pros and cons. In order to make an excellent choice and use it in financial transactions, please try to know the local rules and regulations of the country you are living in. Although, its acceptance is increasing globally.