4 Reasons Why We Need Cryptocurrencies

Technology has been incorporated into almost every aspect of our lives and while some people are inherently resistant to change, in general the benefits have far outweighed any downsides. From the Internet of Things (IoT) giving us better control over our homes, security, and utility usage, to the widespread adoption of wifi and so much of the world being available at our fingertips, the tech world continues to amaze and innovate.

When it comes to cryptocurrencies however, there are still many would-be investors that are not only hesitant to enter the industry at this point, they’re still unclear on why we even need cryptos to begin with.

So… let’s count down some of the top reasons.

1 – Inclusion

It’s simple – financial inclusion is key for reducing poverty. Billions of people around the world still don’t have access to banking, whether due to being considered a liability by the financial institution or other more personal reasons, it’s next to impossible for them to participate in the local economy. Much less the global economy.

The advent of cryptocurrency enables everyone to be a part of the global economy and no one, no bank, border, or political entity can deny them the right to send and receive money around the world whenever they so desire.

2 – Transparency

There is a huge misconception among those outside the industry, and even with some that have started dabbling with trading, that blockchain and all crypto transactions are completely anonymous. Don’t get fooled by the “folk story” that cryptocurrencies aren’t traceable — most of them are actually 100% traceable.

In fact, if you’re planning on conducting nefarious transactions such as drug dealing or money laundering, most cryptocurrencies are the worst possible choice you could make. Every transaction is registered, publicly visible (with no ability to be hidden) , verified by thousands of users on the blockchain, and can never be altered.

Now, it should be noted that there are indeed cryptocurrencies that are privacy focused and enable users to complete transactions without leaving a trace, but those coins are few and many times, questionable.

3 — Better for Merchants

For far too long, credit card companies and traditional financial providers have been charging both the vendor and the consumer on every transaction. The Point of Sale (PoS) terminals used to complete the transactions generally come with a monthly fee themselves, and many providers charge the merchant a small fee for every single use.

To offset this, many small businesses require a minimum purchase when using a credit or debit card, otherwise they actually lose money on the transaction. With cryptocurrency, neither side pays such a fee and as an additional bonus, merchants don’t get the shaft due to fraudulent purchases.

That’s right, if your credit card is compromised and you’re lucky enough to have your provider reimburse you, that money doesn’t come from them even if they’re the ones completely responsible for the issue, those funds come from the merchant.

Cutting out the middle man would save merchants and consumers untold millions upon millions each and every year.

4 — It’s Infallible

By their very nature, cryptocurrencies are unchangeable. This means that nations with volatile economies or criminally-inclined leaders could benefit greatly from the introduction of crypto trading. Fraud, corruption, and theft would be immediately detectable, effectively blocking those opportunities.

No large scale corruption, local war, or political conflict can make the price implode and no one can manipulate it. Cryptocurrencies are decentralized and no institution, military force, or anything else can destroy it. Brick and mortar institutions may appear to be a lot more stable than they are simply because we’re used to associating a physical presence with stability. However, these types of businesses and traditional fiat currencies are definitely subject to instability, outside influence, and local events such as war and corruption.

Really and truly, I could likely double this list and provide even more reasons why we need cryptocurrency, but I have to stop somewhere. While it may still take a little while for more mainstream adoption, crypto is here to stay and has numerous reasons for doing so.