Cryptocurrency prices such as Bitcoin have skyrocketed, growing over 750% in value in just 12 months, according to The Guardian, surpassing even an ounce of gold. As an investor, you should be stalking the markets in an effort to predict the future. For anyone who has been transacting online, then you already love blockchain, mobile payments and the opportunities they unfold. That’s not to say that cryptocurrencies are foolproof payment methods. In fact, they have faced a couple of hurdles with some companies pulling them out as a payment system. While this is a reason to be extra cautious, you need to consider cryptocurrency as the future of online transactions for the following reasons.
Lessens the Risk of Fraud
Online fraud is growing at an alarming rate and continues to pose a huge risk to businesses. Technology is a double-edged sword that simplifies life for everyone including fraudsters. With all the information available, it is extremely easy to set up a fraudulent account and sell fake products by pretending to be a recognized brand. Ponzi and pyramid schemes also reduce the faith in online transactions. Cryptocurrencies offer a chance to trace the originality of a product. For instance, selling tickets to an event using blockchain enables you to trace all the information of each seller from the stored blocks of data. These data blocks cannot be forged or manipulated.
Alternative Payment Processing Option
In the world today, you have to be exceptional to live off your trade. However, the pay disparity between artists such as actors and musicians is astounding. Such a system denies a lot of talents such as calligraphers and web designers who often are underpaid by organizations. Blockchain offers an alternative payment system that is more open. As an online system, cryptocurrencies enable the input of formulas that ensure that businesses and individuals get their deserved dues. Millennials are more charitable, and such a system will appeal to them, leading to its adoption.
It Works Well With Commodity Currencies
Commodity currencies are those whose production can be traced, such as the mining of gold or the printing of USD. Cryptocurrencies do not ascribe to this category; they are a formula in an unregulated free market backed by the price mechanism. The value of one unit depends on many factors, making it volatile and unstable, which is unsuitable as a base currency. However, in online selling, cryptocurrencies are bound to work better, faster and more efficiently. As the technology behind currencies, combining it with paper money is the future of online transactions.
Online transactions are fully reliant on technology which typically translates to them working better with an online currency. The advantages of digitizing the whole process from selling to payments are simply the next giant leap in online transactions.
Read more at: Payment Journal