Let’s face it. In today’s technologically advanced world, digital money makes sense. Let’s dive into a few advantages of using cryptocurrency, and what makes this system appealing to so many.
Security
The first advantage to cryptocurrency involves security. Cryptocurrency is simply a better safeguard against identity theft. By using a blockchain, you are ensuring that no one will be able to see the monetary encryption taking place. It’s decentralized. There’s great security there since the system does not exist on one server or in one bank that can be hacked, robbed or moved in different ways. And it’s certainly more secure than carrying cash around in a suitcase!
Speed
The second advantage is speed. The speed of transaction has shown great innovation when it comes to blockchain. All digital currency is going to naturally be much faster than an actual exchange of paper from one place to another.
At the bottom of all fiat currency is paper and that paper does have to be moved when big exchanges are made. That’s why banks have vaults. It’s true – you actually have to have a vault to store all this paper to manage all of the money that is being transacted digitally through our phones.
I do believe we are moving toward a digital world and I think it is the future of money. However, I don’t think fiat currency is going away. I think it’s a ‘both and’ world. I think we will have paper money, and I think we will have digital currency.
Universal Access
The third advantage to using digital money is that this currency can be exchanged all over the world with minimal hassle. As our world is connected through various means online, it makes sense to have this digital currency that allows for a value we all agree on. It’s a centralized system, not based on one country, but rather a universal currency that can be used by everyone. It’s a global and international trade and transaction of funds that crosses boundaries like never before.
Minimal to no fees
This is a big one! When you compare typical banking or credit card fees to cryptocurrency, you see that digital money involves little to no fees and ultimately allows businesses to keep more money. And at the end of the day, things are cheaper.
To understand more about cryptocurrency and its effect on your organization, be sure to check out my full Dunham Institute course Demystifying Cryptocurrencies for Nonprofits.
More Insights from Dunham+Company: “Cryptocurrency: The Future of Money?”