• By Assad Halak
• 08, Mar 2025
• 08, Mar 2025
• Marketing

Cryptocurrencies

Cryptocurrencies, what are their benefits, disadvantages, and impact on your life?

Cryptocurrencies are the future of paper money and the transfer of the global economy to the virtual world. But what are the benefits you gain from them, what are the disadvantages of dealing with them, and what is their impact on your life? Benefits of digital currency

Faster payments: Using digital currency, you can complete payments much faster than current methods, such as bank transfers, which can take days for financial institutions to confirm a transaction. Less expensive international transfers: International currency transactions are expensive, as individuals are charged high fees to transfer money from one country to another, especially when it comes to currency transfers. Therefore, digital assets work to eliminate these fees by making them faster and less expensive. 24/7 accessibility: Current money transfers often take longer during weekends and outside of regular business hours because banks are closed and cannot confirm transactions. Cryptocurrency transactions operate at the same speed 24 hours a day, seven days a week. Support for the unbanked and underbanked: More than 7 million American households don’t have a bank account, according to the Federal Deposit Insurance Corporation (FDIC). They end up paying expensive fees to cash their paychecks and send payments to others through money orders or wire transfers. If a country launched a central bank digital currency, unbanked individuals could access their money and pay their bills without additional fees. More efficient government payments: If the government developed a central bank digital currency, it could send payments like tax refunds, child benefits, and food stamps to people instantly, instead of trying to mail them a check or figure out how to use prepaid cards. Disadvantages of digital currency There are so many digital currencies out there right now. The current popularity of cryptocurrencies is actually a downside. There are so many digital currencies being created across different blockchains that all have their own limitations. It will take time to determine which digital currencies might be suitable for specific use cases, including whether some are designed to be widely adopted in the economy. Double the effort to learn how to use it: Cryptocurrencies require work on the part of the user to learn how to perform basic tasks, such as how to open a digital wallet and store digital assets securely. For cryptocurrencies to be more widely adopted, the system needs to become simpler. Blockchain transactions can be expensive: Computers must solve complex equations to validate and record them. This requires a lot of electricity and becomes more expensive as more transactions are made. These resources are likely to be absent for central bank digital currencies. However, they are likely to be controlled by the central bank and there will be no need for complex processes. Large fluctuations in cryptocurrency prices: Cryptocurrency prices and values ​​can change suddenly. This is thought to be why businesses are reluctant to use them as a medium of exchange. In contrast, fiat currency is more stable in value and cannot fluctuate significantly over time. Developing a digital currency will take time and significant expense for the central bank: The US central bank digital currency is still hypothetical, and if the government decides to create one, there will be costs associated with developing it. How will digital currency affect your life? If the US adopts digital currency, it will serve as an alternative to cash but will also have the advantage of being electronic, allowing for quick transfer of money. Although digital currency will be electronic, it needs to be as accessible as cash. That is, anyone should be able to use it, not just those with the latest smartphones. A way to handle digital transactions offline will also need to be developed, so that two people can exchange digital currency with the central bank even if they are not connected to Wi-Fi or the internet. There is a lot to be done and a lot of industrial input required, but it may be worth the investment. Just think about the internet and how far it has come from its early days to today, and the endless possibilities of how it can be used in the economic sphere.