Satoshi Nakamoto ushered the wave of cryptocurrencies in 2009, and who knew a digital currency could become a threat to the actual money that people have been using for decades? With time the meaning of money has constantly been changing; earlier, gold and other physical assets were the mere meaning of payment, and then came physical notes and coins. On the other hand, if you are interested to start your trading journey, trust only a legit platform like
Now it seems that cryptocurrency will take over all the traditional means of money and become the new currency. One prominent example that cryptocurrency is a significant threat to the fiat currency is El Salvador’s recent bitcoin subjected with bitcoin.
Reasons why cryptocurrency can disrupt the fiat currency and traditional banking ecosystem!
Cryptocurrencies have grabbed the attention of Gen-Z!
Cryptocurrencies have become the trend with young people- Generation Z- who was born in the 90s, and they are using cryptocurrencies in all areas of their life- online reputation, social media, online shopping, donations, etc. The reason why cryptocurrency has grabbed their attention is that they are the future of cashless transactions.
A decentralized and secure environment will be superb for Gen Z to protect their digital identity. Even though some people believe that cryptocurrencies are way too unstable, they don’t seem to be bothered much as they understand how vital technology is in today’s world.
Great investment option!
Cryptocurrencies are indeed a safe and secure investment option. For example, in 2017, when the crypto market was booming and people were making millions of dollars investing in cryptocurrencies, the traditional market was having its worst time-year. Therefore, it is believed that cryptocurrencies would give a better return on investment than any other traditional asset class, such as real estate, stocks, mutual funds, etc.
Cryptocurrency can also disrupt the financial sector of the banking industry by launching ICOs for startups that need an investor’s capital to start their project. It will eliminate the intermediaries, and you will be able to invest your money directly in projects with an extra 5-10% profit.
Supports easy and fast international transactions!
Cryptocurrency is an international digital currency that can easily be transferred from one person to another as it is not affected by any government or restrictive law. That’s why the cryptocurrency is also a significant threat to international banking systems, as they will have to compete with borderless cryptocurrencies. In addition, cryptocurrency can create problems for fiat currency.
As the cryptocurrency market is multiplying and more people are showing interest in investing in this digital asset class, governments will have to take measures to regulate cryptocurrencies and make their use safer for everyone. However, this is where government intervention will affect the fiat currency as it will not be possible for them to keep up with fast-changing trends.
Besides, cryptocurrency significantly impacts every field of a person’s life. People use it for day-to-day tasks such as buying coffee or booking a hotel room. For example, most hotels accept cryptocurrencies these days due to their benefit in payment processing.
Cryptocurrency is the future of money!
Shortly, you will see traditional banks start accepting cryptocurrency payment systems and launching their cryptocurrency. In countries like Venezuela, Ether is the third currency after bolivar and dollars. Therefore, there is a very high chance that cryptocurrencies will soon change the way people make transactions.
Cryptocurrency is the only solution to inflation and remittance!
The demand and supply of cryptocurrencies are way more volatile than traditional fiat currency because there are no regulations over the supply. For example, in India, you have seen a sharp rise in inflation rates, and many experts believe that the government has no control over it. Cryptocurrency can be a good solution for this as inflation will be under control by the nature of cryptocurrency.
As a result of even going to zero, cryptocurrency can eliminate the remittance fees if it happens to go down to $0 value from its peak. Banks charge you a certain percentage of fees and transaction charges, which is why people don’t trust the banking systems. Cryptocurrency has already disrupted the banking system in some countries like Japan and Venezuela.
Cryptocurrency is set to shake things up in many other countries, including Venezuela, where it is being used as a currency. Similarly, cryptocurrency will disrupt traditional banks soon followed by unstable governments taking advantage of their authority.