Digital Currency is a compound name or a blank term that is used to describe all electronic money which includes both virtual Currency and cryptocurrency. Whether it is developed and used as a financial settlement within a group or community, or it used across continental and international boundaries, digital money is an electronic Innovation towards a business revolution. Though have witnessed some level of scepticism some years back, but due to consistency and continuity, Crypto such as bitcoin has become a household for business transactions across the world.
Undoubtedly many businesses and communities have joined the bandwagon of Cryptocurrency business world and other electronic money systems. The reasons are not Far-fetched; the convenience, speed and dynamism they (digital Currency) offer to the business world cannot be argued. Despite the uncertainties that this business option presents, the global financial sector has witnessed unprecedented growth and development as a result of its usage. The benefits or advantages of these electronic money systems will be discussed in this article.
1) Faster Payment & Receipt of Cash
Digital money transaction happens almost immediately after initiation. The speed at which digital transactions such as cryptocurrency is processed is high. For example, when buying bitcoin on your credit card, Contrary to the traditional credit card or debit card option, you will have access to your coin payment in a few minutes. This tends to have a posture implication for both buyers and sellers. For a buyer, you have access to your coin almost immediately, and for a seller, transactions are quickly completed.
2) Low Fee Rate
As an organization or a business owner, one reason why you want to consider crypto Currency is low processing charges. Unlike a credit card, where intermediate banks or financial institution usually charge an outrageous fee to process and complete your financial requests, such third parties are removed in bitcoin because cryptocurrency operations are decentralized.
For instance, a coin is not controlled by a particular single authority or government but through a designed technology known as a blockchain. Through this means, buyers can create almost free wallet while merchants can have their accounts set up at relatively low prices. To this end, digital currencies can be said to attract free or nearly free charges.
3) Improved Customers Base
Digital currency option can establish and build your customers confidence. With an increased interest in cryptocurrency, all over the world, making coin payment can be a potent instrument for driving massive traffic of customers to your business. Since digital money is a valid legal tender, it will advertise your business to the global scene and give you more clients since the fees are the same across borders and continents.
4) Anonymity And Lower theft Risk
Cryptocurrency has precise encryption mechanism which ensures that the identity of both the sender and receiver of bitcoin are protected. This implies that the transaction path of coin merchants and their customers are shielded from the sights of internet fraudsters. Unlike credit card customers where the holder’s details and personal information are displayed and at times stored in the device being used, which makes it easy to be hacked by fraudsters. Coin holder’s information or numbers are not exposed. They are only provided with special encrypted codes for processing their transactions and accessing personal details. This offers additional protection or security for investment.
5) No charge Back
Authorized transactions on cryptocurrency platform are spontaneous and irreversible. For instance, by using bitcoin, fraudulent activities through which customers seek a refund after using a particular product or service are not permitted. Although a chargeback or refund can be a good business strategy to encourage patronage and customers satisfaction. However, where an atrocity is suspected of having been committed a refund may not be considered since the cryptosystem does not give room to such practice in the first place.
6) Decentralized Payment System
This is one quality which gives a unique preference to cryptocurrency above other traditional payment systems such as credit cards or banknotes. A single authority such as government, banks or other financial institutions does not assume too much control over the process. Instead, it is operated and managed by both buyers and sellers through an inbuilt mechanism known as a blockchain.
This helps operators (people) to process their transactions such as buying, selling, transfer of digital fund from one point to another with ease. This is a way of restoring financial power to the people without the input of the third party which is capable of exploitation.
In conclusion, digital Currency can be seen as a global financial system which supports a new way of doing business transactions. Though some part of it seems to be relatively new, it fast restoring financial autonomy to the people (players). While the traditional payment system is still trending, digital currency system is massively winning enthusiasts across the globe. This is simply because it offers a simple, fast and effective financial solution.