We have a new form of money flow—and it is in digital form. And there is an unprecedented growth that both offers benefits and uncertainties. Yes, there has been so much hype about cryptocurrencies but the underlying technology—blockchain—offers potential gains in the future.
Blockchain technology serves as the operating system of this whole cryptocurrency mania that everyone is crazy about. This emerging technology has the potential to cause a ‘turmoil’ to the current monetary standards. Yet, it provides key advantages with foreseen beneficial end results. As we all know, even with the incorporation of technology in finance and banking sectors, financial transactions are still costly. There are still prevalent financial transactions that are costly and took several days to complete because of geographical location barriers.
Blockchain offers a lot of potential on the horizon. Its paradigm is so dynamic that it can cater other industries such as healthcare, learning institutions, the government, IT sector and many others.
Financial analysts kept on barging precautionary measures yet, it seems that cryptocurrencies already have invaded the monetary norm. Online platforms and even known brands are already using Bitcoin and other known cryptocurrencies.
On the other hand, the massive attention of cryptocurrencies made it more uncertain and volatile. This is just simply, the law of supply and demand. The hype caused an unprecedented demand combined the virtual limited supply equates—uncertainty.
Yet, on the brighter side, as it is purely not surrounded by dark skies at all, cryptocurrencies offer attributes such as anonymity. This is quite an impressive yet very dangerous environment. This is how the ‘push’ model works. The model simply works in opposite with the ‘pull’ model that is the norm in the finance and banking community. The previous model requires the sender to send exact amount of cryptocurrencies without pulling pertinent information. While the latter model works by transaction identification and pulls the amount of the transaction from the account’s information. This is very common with the how the credit card works.
People got really interested with cryptocurrencies because of its capability to faster speed transaction, regardless of its geographical location. Also, unlike the current currencies, it is not bound by exchange rates, transaction charges and other on-top charges.
And just like everything in this world, cryptocurrency was developed without risks. The hype maybe outrageous, the massive run-up of Bitcoin’s price value is beyond the norms but in truth, it is still a small portion of the whole global financial ecosystem. Yes, it represents an opportunity but volatility is the main antagonist here. Plus, the government will not allow it have a detrimental impact on the global financial activity.
The advantages of cryptocurrency are indeed undisputed; it is embedded in the model which is made it unique. However, these advantages are riddled with uncertainties. Thus, if you are planning to become an investor then keep in mind these advantages and study the risks.
http://rehash360.com/2018/01/08/undisputed-advantages-uncertain-future-cryptocurrencies/