Since its inception, cryptocurrency is consistently growing and advancing in the financial world. The creators of BitCoin® introduced cryptocurrency to the world in October 2008. It released as open-source software in 2009 and is presently primed to be the future of global payment systems. Forms of cryptocurrency such as BitCoin® and others are revolutionary because they are a means of payment accepted by legal persons and can be transferred, stored, or traded electronically. This removes customary impediments to commerce and as a result, it has members of worldwide financial institutions concerned about the strength of their collective grip on the payments industry. The European Banking Authority describes cryptocurrency as a digital representation of worth, not distributed by a central bank or a public authority and not attached to a fiat currency. The United States Government has implemented the inaccurate term “virtual currency” to describe all forms of cryptocurrency. In recent years, cryptocurrency changed from a fringe financial fad to a global force and a legitimate game changer in future of payments.
One only need to look at the impact cryptocurrency creates among traditional financial institutions and world governments to see that the new way to pay is not a passing trend. Its recent acceptance by institutions such as NASDAQ, BBVA, USAA, and NYSE Euronext is a prime example of cryptocurrency acceptance as is the move by the United States Internal Revenue Service which makes BitCoin® and other new forms of digital currency taxable via the capital gains tax by labeling cryptocurrency property. Other world governments have put measures in place to make the use of cryptocurrency difficult or even illegal. Vietnam outlawed the use of cryptocurrency. Strict regulations are also in place to discourage use of digital currency. China has barred monetary establishments from using cryptocurrency. Russia contends that cryptocurrency is legal, yet all acquisitions made with currency other than Russian rubles are illegal.
The independence from traditional financial institutions and their subsequent fees and regulations is just one of the ways cryptocurrency is changing the future of payments. As a self-directed source of financial management, digital currency gives users a safe place for financial holdings. Those who use cryptocurrency are free from the interest rates, and fees charged by financial entities; digital currency also shields from inflation rates and arbitrary freezing or garnishment. Growing evidence points to the false notion that banks and other financial institutions are above reproach; distrust of these industries creates a climate that is ideal for the rise of additional options like Bitcoin® and other newer forms of cryptocurrency.
Safety is an ever-present concern in financial circles and cryptocurrency exists as a secure way to manage finances. Security and trust are what cryptocurrency is based upon. The innovative computer code and the shared work of millions of individuals who confirm the transactions make it possible to have security without excessive oversight. The system operates on blockchain technology making it connected, peer-to-peer, and open sourced. The exclusive cryptography behind blockchain and cryptocurrency expand the use of digital currency by making it a secure format. In order to hack into a part of the block chain, the entire chain all the way back to its point of origin must be hacked. This is essentially impossible to accomplish without detection.
Cryptocurrency is a highly accessible means of payment. Sectors given the highest level of priority and development are the areas of wholesale and retail payment processing. To be a part of a cryptocurrency account, all an individual requires is access to a mobile phone or the internet; consistent growth in technology and connectivity make this more attainable than ever. This significantly levels the financial playing field for the estimated 2.2 billion people who have no access to financial exchanges yet have access to the internet or a cellular device.
Cryptocurrency is still a new and somewhat unfamiliar means of payment; however, in the present financial climate, a payment system that allows users to bypass the large financial institutions is encouraging. It is important to note that cryptocurrency must receive worldwide exposure to gain acceptance on a larger scale. There is still progress and education needed, but cryptocurrency is already changing the future of payments.
Brad K. Russell is an entrepreneur and marketing expert based in Perth, Australia. He is the Founder and Owner of IsaTonic, the #1 distributor of Isagenix products in Australia. Find more information about Brad at his personal website, www.bradkrussell.com.au, or about IsaTonic at www.isatonic.com.au.