-Here are some advantage of cryptocurrencies over fiat Currencies-
Suitability Investment Option
The current monetary system affect the poorest people and those with the least financial knowledge the most. For example, some people still save cash at home under the bed, burring it on ground, putting it in a jar or elsewhere. Some may even have thousands stored like this. Because inflation sees that money is worth less each year, these people are losing money all the time.
The situation is scarcely better for people who keep their money in the bank in a current account or low yielding savings account. Because the rates of interest on these are often still far below the rate of inflation. Even if you don’t, the banks know how to use your money and make a profit from it. It is only when people can begin to invest in stocks, properties and businesses that much higher rates of return, beyond that of inflation, can be found.
Now,
With cryptocurrencies, your money is always secure because no individual or government can devalue it by printing or creating more. As more people use cryptocurrencies, such as Steem, their value will also increase. Meaning they will likely rise at the same rate or a little higher than inflation even when fully established.
Less Costs
Cryptocurrencies not just increased the speed of crypto payments that will improve global trade, but also the less fees. Not only do regular banks charge you anything from 0.5-5% to transfer money, but you will also often be hit by an additional one-off charge for the transaction, along with receiving a worse than market exchange rate when sending money abroad.
This can cause some companies losing 1-5% of potential earnings on transfer fees alone. This increases the prices of products in the shops for consumers and even less wages as companies try hard to cut costs in order to break even or make a small profit. With cryptocurrency charges for transfers tending to be between 0.1 and 1.5%. Therefore, a switch from the high fees of fiat currencies could see cheaper products in the stores, better wages for workers, and increased profits for companies.
Also, each year governments around the world spend billions trying to prevent the counterfeiting of money. This can be anything from designing and producing money that is harder and harder to forge, to police actions, investigations and court cases to prevent counterfeiting. With cryptocurrencies, as all money is stored digitally and securely, there is no way to forge it or create coins that simply don’t exist.
It makes payments faster and easy also.
Improve Global Trade
International and local money transfers usually take hours or even days to go through. It doesn’t just affect how long it takes Alibaba express, Amazon or any global businesses to ship that latest must-have gadget, product or book to you, but the whole business world. This can delay huge shipments, such as container ships full of computers and phones or food destined for the supermarkets. In the case of the latter, any delays can result in poor or inedible products.
In today’s world many businesses also hugely rely on just in time deliveries (JIT). These deliveries, which could be anything from a part of a car to an ingredient for a well-known food brand can halt whole production lines if they don’t arrive or arrive late, costing companies millions of money in lost revenue and productivity.
This problems can be settle using cryptocurrencies in making payments. Reasons is;
Because Cryptocurrencies transactions take just 10 seconds to anyone, anywhere in the world, there is never the worry of waiting for a transfer to go through. This speed of transactions means goods will be shipped faster and more efficiently than going through some processes in bank to send money.
No Political Trait
Because the price of fiat currencies is dependent on the economy of the country and the government’s management of it, either printing more of it to less its value or decreasing how much is available to increase it. This can make currencies particularly turbulent to political or economic troubles in a country.
A perfect example of this is the crisis in Nigeria at the moment, which has seen inflation sore to 12.88 per cent in the last year as a result of poor government management and a worsening economy. This huge devaluation of money has led to an average monthly salary now being worth the price of just one bag of rice. Such problems also happened is some countries also.
Cryptocurrencies are not run by governments and can be used in most countries around the world. They remain solid even if there are big problems in some countries or even a region. Only a globally worsening economy can affect their value.