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The tech world was ever changed in January 2009, when the first bitcoin software was released as open-source code. Since then, bitcoin and other cryptocurrencies have exploded as an online payment method. Why has this happened, and what are some of the benefits of using cryptocurrencies in this way? Let’s have a closer look!
Decentralised
One big draw of cryptocurrencies is that they all operate on their own decentralised systems. Other currencies are affected by various things. It could be real-world events, or relationships and ties to other countries. Everything has the opportunity to shift and alter on a day-to-day and sometimes even hour by hour basis.
Cryptocurrencies cannot be affected in this way. This gives them distributed control across the whole system. Banks answer to governments, investors, and customers. As soon as you interact with bitcoin in some way, you become partly responsible for the management of the system. Some governments have tried to introduce restrictions to counteract some of the freedoms that can therefore be present here. However, unless a government chooses to outright ban its citizens from using bitcoin and other cryptocurrencies, there is little control that they can have over them compared to the restrictions that can be placed on banks.
Usable Everywhere
Though many sites do not use cryptocurrencies, there is potential for them to be used everywhere. They are a truly digital currency and they therefore could be a form of payment no matter what you are searching for.
For example, you can find cryptocurrencies being used for activities at casinos like this one here, and you can also find them being used to buy goods. Some people even like to engage in trading just cryptocurrencies themselves. The potential behind these is immense.
Protection and Anonymity
Finally, part of the popularity of cryptocurrencies comes from their inherent anonymity and security. Every transaction made is recorded but there is very little information about the transaction that can be accessed without the right encryption keys. While every user will have a public key they use to verify transactions, there is another that will always be kept secure. This means any data stored in the transaction will be safe.
The information about transactions like this is also stored in blockchains. The way this works means that no-one can edit any part of a transaction without editing the entire chain. Since blockchains can contain thousands of transactions, this simply isn’t worth it. The amount of energy and resources it would take to change even a single number does not exist. This security makes them perfect for online transactions.
Cryptocurrencies have proved themselves time and time again to be trustworthy online payment methods. Though they may not be as mainstream as ewallets or other forms of online payments, they can still offer some fantastic benefits beyond those listed above. If you are interested in cryptocurrencies, head online and find out more now! They are an incredibly interesting subject, and they are well worth some research.
