Home Crypto Exchanges Cryptocurrencies Stability Cost Effectiveness Safety Huge Payments and GDP

Cryptocurrencies Stability Cost Effectiveness Safety Huge Payments and GDP

The existence of the Central Banks has made it possible for the economy to have diverse payment systems and it has led to achieving scalability, safety, cost effectiveness, and trust the sooner a payment is made – the finality of payment factor.

The cryptocurrency advocates are now pitching the idea of quick transaction times and low transaction costs to be their major plus point.  And, yes there are facts like immutability and other standard stuff they say about crypto like Peer-to-Peer etcetera.

Whether cryptocurrency or regular fiat money, the success of the money is when lot of buyers and sellers are using it on a regular basis.  This is what they call as mass adoption. And, another point that cryptocurrency companies are telling about their kind of money is that with more usage of one particular crypto, the more its value will increase.  Whether there will be proportional increase in the value of the crypto with more people using it is something that should be thought over. Also, they are trying to pitch people in to using the crypto by offering them some greater incentive to use it.

Since people are used to paying with fiat, the cryptocurrency protocols are trying to create trust in the process by stating that the payment will take place promptly and also smoothly. Payment finality is another point they are proposing – thus ensuring that the crypto is able to compete well, this putting aside transactions which have gotten executed incorrectly.

Finality is possible only when the system is completely free from fraud and only when there are less operational risks. This should happen at an individual transaction level and also at the system level in the whole.  They have to state that the immutability factor with the distributed ledger technology will help with accountability, trust and finality.  With Fiat currencies, the organizational efficiency of Central Banks promises these attributes.

Ultimately, any kind of value transaction is supported by the Central Banks.  If cryptocurrency should become an efficient money, then it needs to become a parallel world to the Central Banks and it has to compete and prove itself.  Though, crypto defends itself to be independent money, people and investors still understand the value of the cryptocurrency only in terms of fiat money and ultimately crypto to be used in the real world should be converted to fiat.  However, there is a big market developing where the entire transaction keeps happening only in crypto and the payment ecosystem is completely in crypto.  Should agree that crypto is still in the experimental stage.   

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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