Since the evolution of digital money, cryptocurrency, there have been upgrades in the value of liquid assets held by individuals. Cryptocurrency has not only put the power of financial freedom into the hands of its adopters, but has made sure the implementation of decentralization is efficient. With the rise of several cryptocurrencies, the central governing body for finances has been on its toes to make up for the redistribution of power. Cryptocurrency is not only a tool for financial revolution, but also a means to staying financially buoyant.
One of the major similarities amongst every digital asset is to help improve the financial Institution and become the future of money. So far, cryptocurrencies have achieved that, although there’s still the issue of fiat money and centralization; nonetheless, cryptocurrencies are striving and doing excellently.
Blockchain technology is arguably the best news that has happened to the financial sector of any economy because while fiat money is anchored on centralization, digital assets are decentralized with no executive or central governing body. It might interest you to know that cryptocurrencies are visual money that uses cryptography as security. They have higher monetary values compared to the traditional fiat and can serve as a store of value. Cryptocurrencies like Bitcoin, Ethereum and Cardano are some of the top cryptocurrencies, and Cardano price being pocket-friendly makes it an excellent choice to acquire.
How are cryptocurrencies financial revolution tools?
So you might be wondering how cryptocurrencies could lead a revolution in the financial sector or how they can afford to be the next generation of money. It’s important that, at this point, we understand that cryptocurrencies are not just tools to end financial mysteries; they can do even more. While some coins like bitcoin aim to become the future of money as their core objective, Ethereum’s objective is being the first smart contract decentralized crypto is to help run financial applications on decentralized apps. On the other hand, Cardano is a third-generation coin that can outperform Ethereum in all areas. So, while the basis of these cryptos is financial freedom, there’s more to it than meets the eyes still. Here are some of the Hows;
● By making sure decentralization is achieved:
One of the main reasons why cryptocurrency was developed in 2009 was to solve the issue of money not being in circulation. Fiat money runs on centralization, where a few individuals determine the flow of money and how it should be injected or withdrew from the economy. So, the need for a more efficient way of putting financial freedom into the hands of the masses arises hence, cryptocurrency. So, with the birth of cryptocurrency, individuals do not need to keep their fiat in the banks or buy bonds; instead, they purchase cryptocurrencies which is an excellent store of value. As the price of the coin increase, the value of their money increases too. Peradventure you’ve invested in Cardano, your fiat monetary value increases without you doing anything or activity as Cardano’s price increases.
● No intermediaries included:
Another way the cryptocurrency community is revolutionizing the financial sector is by eliminating the need for intermediaries. In a centralized economy, every transaction needs to go through financial institutions (banks). So, it’s impossible to get money across to the receiver without going through the banking sector. But with cryptocurrencies, it’s a different story. All you need to do is have the wallet address of the recovery, and in less than a minute, you’ve successfully initiated a transaction.
Another important point to note is that sending crypto to another individual is faster than sending money to the receiver. With cryptocurrency, the transaction is faster, and transaction charges, pocket friendly. On the other hand, Fiat money might incur high transaction charges, especially if the money involved is huge and the transactions are somewhat slow depending on the financial Institutions’ network.
● There’s no room for inflation:
Part of the fiat money being controlled by a central body means there’s always room for inflation. They might decide to print more money and inject it into the system or sell it as bonds to wealthy individuals. Either way, the central governing body has the ultimate power over the wealth of its people.