Today, even a teenager knows about the existence of cryptocurrencies. The recent rapid growth of bitcoin in 2017 and its slump in 2018 have caused a lot of hype and controversy in the media. But still, few people understand what is the essence of cryptocurrency as a new phenomenon in the global financial system. Let's consider the main advantages of cryptocurrency in comparison with traditional fiat money.
Cryptocurrencies solve some essential problems related to the centralized nature of fiat money. Cryptocurrencies are almost not subject to inflation. In cases where inflation may exist, it is known and not hidden by anyone. As for fiat and the banking system, the inflation rate is unknown, and central banks can print any amount of money without the consent of the population.
Cryptocurrency transfer is beyond any borders. You can be geographically anywhere in the world and easily transfer cryptocurrency wherever you want in just a few seconds using your smartphone or laptop. In the case of fiat, sending and receiving money between countries can be difficult in many ways.
Another positive aspect of cryptocurrencies is its transparency. It is impossible to cheat the network or do something that others do not know about it. All members of the network can see what is happening at any given time.
Finally, blockchain technology which cryptocurrency based on has a huge potential. Smart contracts may be a new stage in the evolution of economic decentralization. Cryptocurrencies are going to be a new form of money that knows no inflation, no boundaries or restrictions. A new era of true economic freedom has begun.
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