Why Crypto Currency is fast emerging as a parallel economy?
The global economy inevitably has to move towards a digital ecosystem. We have recently seen the trend of the rise in digital money transfers be it in form of investment or money transfer. In this situation, cryptocurrency is emerging as the newest and most popular form of digital exchange.
This cryptocurrency is a medium of exchange for all other currencies but is designed to exchange digital information. Thus is it a digital or virtual currency that makes use of cryptography? Thus making it difficult to counterfeit. Most importantly since it is not made by central authority even the government cannot seize it from the owner.
Crypto has emerged as the most popular investment tool among younger people between 18-34, exceeding individual company stocks, mutual funds, bonds, and so on. The major reason behind this shift is the faith in this developing technology and the freedom that comes from a decentralized currency.
Since Crypto is very much dependent on market variation and is not so affected by other political factors, the recent trend in its popularity has surely benefited its users because it has increased the value of the coin with an increase in the number of buys.
Thus, if owners are okay with the risks of market variation, which is somewhat like gambling where they take a risk on the stake and can win big, they can very easily decide to own Crypto-currency. Crypto has also experienced a massive demand across the iGaming fraternity, especially among casinos that support Bitcoin payments.
The stake Canada review published on one of the very popular sites is evidence of that immense growth curve.
And since now many businesses and such have also started accepting crypto as a valid form of exchange the popularity of the system has also increased significantly, thus promoting itself as an economy without government interference. Which has increased people’s faith in the currency.
Reason for Crypto Currency emerging as a parallel economy
Among many reasons for Crypto Currency emerging as a parallel economy the most important ones are as follows;
Crypto Currency is Fraud-proof
Cryptocurrency can only be created, with all confirmed transactions stored in a public ledger thus all identities of the owners are encrypted. It is decentralized and even the government cannot take it away from the owner. The owner has sole and full control over the currency.
Fewer chances of Identity Theft
The public ledger always ensures there is a balance between all the transactions between digit wallets. They also make sure that the coins that are being used by the current spender are owned by them. This blockchain technology guarantees secure digital transactions through encryption that is virtually unhackable and thus reduces the chances of fraud drastically.
Crypto Currency ensures Instant Settlement
Since cryptocurrency gets its value from the blockchain and the blockchain ensures instant settlement, its ease of use makes cryptocurrency popular.
Anyone with the internet can use Crypto-Currency even if they do not have the right to use the traditional exchange systems, they can always use Crypto-Currency. Most importantly they do not have to go through complicated exchange systems and compare their state currency with a foreign currency and sit with a calculator every time they visit a foreign country. They can just use Crypto instead of going into the hassle of converting money.
Ownership is the biggest reason for the emergence of Crypto as a parallel financial model. First of all, there is no other electronic cash system in which an account is owned by the person. Cash systems are always owned by the bank. Moreover, because the bank account number is with the government, they always have the power to seize someone’s money. But in Crypto-Currency that is not possible. Thus, only the owner of the coins can operate the money and no one else. Giving an unprecedented sense of security to the owner.