Is Cryptocurrency Really Changing The Core Payment System?

Mihai-Alexandru Cristea 07/07/2022 | 17:10

Since the inception of BTC, Cryptocurrency has been frequently talked about synonymously with challenging conventional payment. And, to some extent, it’s already been deployed as an alternative to “how we pay someone” now. 

 

But, how much has it really changed the system? Is it bringing something new to the table? Or, will it come with the “same old, same old” issues like the traditional financial system?

Let’s find out.

What Is Cryptocurrency – A Small Breakdown!

Crypto, in essence, began its journey back in 2009 with the introduction of Bitcoin. Initially, most people considered it as “just another” online gimmick.

But, after a while, almost everyone understood the potential it has and began jumping on the bandwagon without thinking twice. But, why did they do it, really?

Well, Cryptocurrency came into the world as a form of digital currency. You don’t have any proof that it’s there, but you can use it to make a purchase or payment.

But, as it’s not physically available, like the stocks, you’ll have to purchase or earn them from a decentralised trading platform, like bitcoin trader.

Or, if you have the necessary know-how and efficiency, you can also mine it. Nonetheless, I won’t really ask you to do that. It’s a little risky.

Is Cryptocurrency Being Used To Pay Now?

Oh, yes! Whether you believe it or not, many people have already begun buying stuff with Crypto. And, the trend primarily began with Tesla accepting it as a form of payment. But, why is it really being given so much importance? Is it really THAT good? Let’s find out.

Reason To Choose – 1: Lower Transaction Fee.

In the current financial ecosystem, you usually have to pay a small amount of fortune to the bank or the credit card provider. And, although it may seem minute at first, the expense might keep piling up if you don’t take care of them quickly.

However, such a risk doesn’t really matter in a Cryptocurrency ecosystem. And, the reason? Well, unlike the former, it doesn’t need to house an intermediary to follow-up with all of your transactions. Therefore, the additional cost you may have to pay will be close to zero.

Reason To Choose – 2: Higher Security.

Yes, I know.

Almost every bank authority has some sort of security measure in place to protect their user data from an outsider (or, a hacker). Nonetheless, as you probably have seen, it’s not effective enough to prevent a sophisticated attack. Not at all.

However, blockchain technology usually doesn’t share the same fate as them. As it follows a decentralised ecosystem, it’s nearly impossible for a hacker to hack without having any data. And, if you’re keeping the keys to your “digital vault,” no one can get anything from you.

Reason – 3: No More Chargebacks.

In a blockchain ecosystem, whenever you make a payment or transaction, it’ll be saved in the form of a block. Now, you and the business owner, both can see the information whenever it is needed. And, best of all, no one can delete this data once it’s been placed.

This, in turn, can reduce the risk of suffering a chargeback during or after making a payment. Hence, the process of digital transaction will be nearly a no-fuss system at this point.

Is There Any Example Of Cryptocurrency Popularisation?

Well, yes. There are more than one if I’m being honest.

But, the best of them all is El Salvador. I mean, they’re literally building Bitcoin City. But, is it really a viable solution for the country?

Um, yes, I think. After all, since becoming independent, El Salvador has been using USD as the national currency of the nation. However, with the Bitcoin City, that won’t be needed.

Not anymore.

According to the president of El Salvador, the city is going to be built near a volcano, known as Conchagua. They’ll use the geothermal energy to power the BTC mining process and the city as a whole. So, there’s no need to worry about the massive power requirement at all.

How Does The Future Look?

The future will be Cryptocurrency-focused, of course.

After all, the way Bitcoin is gaining popularity, we might see the trend within a decade or so. But, before that happens, the world of Cryptocurrency needs to be stabilised a little. And, it’ll only be possible when all of the available BTC has been mined and collected.

So, let’s wait till then and see how the story unfolds.

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Mihai-Alexandru Cristea | 02/08/2022 | 10:15

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