It is the new hot topic in the finance space. The whole finance world is on the storm after the mind-blowing performance of Crypto assets, especially Bitcoin.
Seeing the always inclining graph, common people and Crypto investors are thinking,
“Is Cryptocurrency the future of finance?”
Only the experts can say it. So, let’s check out what the experts have to say about the confusion about whether Cryptocurrency is the new future finance or not.
But, before digging into the main topic, it is crucial to know the basic details. We should consider being aware of the backdrop of digital finance.
The Beginning Of Digital Finance (Defi)
The traditional centralized financial system is failing;
Or, being too honest, it has already failed to offer credibility and financial freedom to its users.
This has added fuel to the flames. As the most prominent result, we are demanding a secure, transparent, and accessible financial system. In this financial turmoil, decentralized finance has offered not only full control over the transactions and the same with better transaction security and more transparency.
It has already started to replace some of the conventional financial processes. Thus, experts are saying those days are not far away when people will utilize the potential of Defi more and opt for crypto engines instead of relying on traditional systems.
Whether it is for making an investment to gain high returns or doing a transaction, the digital financial system is here with many benefits and great features to offer us. We are also witnessing a time when more investors are getting attracted to this amazing solution.
The financial experts are considering this phase as the dawning of Defi or digital finance. And if it is just the beginning, we can imagine how the future would look like with digital finances or Cryptocurrency.
Varied Values Of Cryptocurrencies
You might be thinking, when Cryptocurrency does not have intrinsic value, how it is gaining so much popularity. Not only among the usual individual investors but also at an organizational level between the institutional investors.
In reality, the following things hold the value of Cryptocurrencies.
As the total number of most Cryptocurrencies is limited, the storage automatically influences the value.
The Bitcoin technology, which is the backbone of the Crypto coins, always allows its users and also the owners to remain anonymous during transactions.
You can use Cryptocurrencies for making transactions like buying any services or goods. Here the best thing is you do not have to rely on a trusted third party for completing the transaction.
Cryptocurrencies can absolutely be attached with commodities like oil, or gold, or any currency.
Digital Access And Also Ownership
With the help of Cryptocurrency, people, who do not have access to traditional banking systems, can also enter the financial system.
Both gold and Cryptocurrency share attributes comparable to money. One can use both as a medium of exchange; both possess a unit of account and have a store value.
Is Cryptocurrency The Future of Finance?
“Whether Cryptocurrency will be able to become the future of finance or not?”
We do not think this debate will ever end. Till the existence of the traditional banking system, this question will render in the finance space.
What, the finance sector is thinking so much about Crypto being the new normal?
It is because Cryptocurrency and Blockchain technology has the potential and a lot of advantages to offer you in comparison to the traditional banking system. But at the same time, being a decentralized system, there is no security where you can rely on.
From the above discussion, it is clear that Cryptocurrency has the potential to replace the traditional banking system and be the new future. But as we have mentioned, it lacks the security that traditional banking systems offer. But experts are saying it will be the new future.