Cryptocurrency and blockchain are the talks of the financial world, whether it’s about Bitcoin or Etherium or something else entirely. But what do these buzzwords mean, and why are so many people talking about them?

Nowadays cryptocurrency has become one of the most popular and hottest topics in the world, changing the way how people use money and interact with each other in this piece, we’ll tell you 8 ways that cryptocurrency is changing the world and why it could be the future of currency in general.

Crypto Can Give You Financial Freedom

When you hold cryptocurrency, you have control over it. No one can take it from you and there are no third parties that can interfere with your transactions. This gives you a high level of financial freedom. That’s why crypto has been so successful in countries like Venezuela, where people are struggling to deal with hyperinflation.

In some parts of South America, crypto is being used for everything from shopping to paying rent to getting better interest rates on bank deposits than banks offer. One crypto project even aims to become an alternative lending network for people in developing countries who need cash but aren’t served by traditional banks or credit unions due to high- interest rates or bureaucratic red tape; they lend using their own tokens.

Crypto Exchanges Are More Secure and User-Friendly

While cryptocurrencies are digital and traded on software, exchanges hold funds in virtual wallets, making them attractive targets for cybercriminals. To combat these risks, exchanges have employed know-your-customer (KYC) rules to verify customer identities.

Crypto transactions are further secured by public and private key pairs. With these keys, it is possible to trade funds at any time and through an automated process while also maintaining control over who gets access to your money. For example, a fund transfer can be coded so that it only goes to one person's address. Crypto transfers cannot be reversed: Much like cash, cryptocurrencies cannot be frozen or reversed if they're lost or stolen.

Acceptance by Retailers Is Increasing

Businesses all over are accepting cryptocurrencies. Overstock, Microsoft, Shopify, and Rakuten are just a few of them that have accepted Bitcoin payments for purchases. Although cryptocurrency may seem like an invention that fell out of thin air, it’s actually been around since 2009 when Satoshi Nakamoto published his famous paper Bitcoin: A Peer-to-Peer Electronic Cash System.

Nakamoto released Bitcoin under an MIT license as open-source software meaning anyone can download it and use it freely. Blockchain is just one type of cryptocurrency and there are many more coming onto the market. Over 500 tokens were listed on coinmarketcap in March 2018 with a total value of over $270 billion USD!

Governments Have Approved Cryptocurrencies as Legitimate Investments

A growing number of governments around the world have decided to accept cryptocurrency as a legitimate investment, meaning you can keep your money in digital currency and pay your taxes with it. Although there are numerous countries where Bitcoin is still not considered an official currency or officially legal tender (for example, Iceland), many people believe that will change soon.

One expert believes that within 20 years Bitcoin could be worth more than $100 trillion! When you consider how easy it is to invest in cryptocurrency compared to traditional currencies, it’s no wonder so many people have started investing their money in crypto-currency.

Cryptocurrencies Can Be Used Globally, While Keeping Your Identity Safe

Traditional banks tend to have strict operating hours and locations, which can make it difficult for customers who travel or work irregular hours. On top of that, personal information must be verified, which takes time and raises security concerns. With cryptocurrencies like bitcoin, you can quickly access your money from anywhere in the world without providing identification details. All you need is an internet connection and a digital wallet to link to your bank account. Some merchants are now even accepting cryptocurrency as payment for goods and services.

Instant Cross-Border Transactions
Transferring money across borders has traditionally been slow and expensive. Due to high currency exchange rates, international bank transfers are often not an efficient option for sending smaller amounts of money abroad. However, with bitcoin, transferring money internationally becomes as easy as sending an email. With a single transaction, you can send or receive thousands of dollars across any border in seconds with little to no fee.

Decentralized banking will disrupt traditional finance institutions

Cryptocurrencies have already begun to disrupt traditional banking. As a decentralized alternative to fiat currencies, crypto coins can provide easier ways to transact on a global scale. Bank transfers take several days to process, but moving money via cryptocurrency only takes minutes.

In addition, many banks charge hefty fees for international transactions and offer only limited access (or none at all) outside of their country’s borders. With cryptocurrency, people in developing countries can more easily open up bank accounts without having to go through difficult bureaucratic processes or pay steep fees for international transfers. For example, BitPesa enables residents of Kenya and Nigeria to send money internationally using Bitcoin instead of dealing with banks and international remittance companies like Western Union or MoneyGram.

Reduced Transactional Costs

Paying a 4% fee on a $1,000 transaction is nothing in comparison to paying it with cryptocurrency. A $4.00 fee becomes a major problem when you’re transferring just $10, but that same percentage fee becomes trivial when you’re transacting millions of dollars. This is because there’s no middle man, no financial institution, taking its cut.

Financial institutions are built on customer fees and transactions, so they inherently work against any technology that threatens their existence by increasing efficiency and reducing costs. If money can be transferred peer-to-peer at virtually no cost then we no longer need banks or other financial institutions to move money around instead we have cryptocurrencies like bitcoin giving users control over their own money while eliminating costly intermediaries altogether.