Why use crypto currency?

 

Because some people are idealists.

Perhaps most profoundly, crypto currency provides an opportunity to democratize & expand the global financial system. Giving people who have limited exposure to the global economy, better access to financial and payment systems and stronger protection against corruption and exploitation.

Some people are tired of paying fees.

For one, it will hopefully help avoid "intermediaries".  An intermediary (or go-between) is a third party that offers intermediation services between two trading parties.  Unfortunately, such services typically charge fees.  If I want to purchase something from you, why should I pay someone else a fee?

Along came a way to avoid the intermediaries (middle man), and at the same time maintain trust and certainty of the transaction.

In 2008, a person going by the pseudonym Satoshi Nakamoto (good luck figuring out who he really is) introduced the concept of a peer to peer electronic cash system called Bitcoin.  It allowed for online payments to be transferred directly from person to person without an intermediary

In summary, blockchain is a type of distributed ledger or decentralized database that maintains continuously updated digital records of who owns what.  Rather than having a central administrator like a bank banks or government, a distributed ledger has a network of replicated databases, synchronized via the internet and visible to anyone within the network.  It is important to note that distributed networks can be either private or public.  So "if private", who knows exactly what is going on behind closed doors?

When a digital transaction is carried out, it is grouped together in a cryptographically protected block with other transactions that have occurred.  The validated block of transactions is then timestamped and added to a chain in a linear, chronological order. New blocks of validated transactions are linked to older blocks, making a chain of blocks that show every transaction made in the history of that blockchain.  The entire chain is continually updated so that every ledger in the network is the same, giving each member the ability to prove who owns what at any given time.

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. 

Are you looking for a payment method that is untrackable and secure?

Are you looking for less costly international payment transactions?

Are you looking for high speed transactions and record keeping?

The decentralized control and use of the blockchain method which uses transaction database as a distributed ledger.

Cryptocurrency has been adopted by many banks in various countries as an alternative system to do banking transactions.  Some new systems present a safe and very cost effective way for transactions to be done intra-banks as well as from bank to bank.

 

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