How Cryptos Changed The World: Positive and Negative Effects
Blockchain technology brought revolutionary changes to every industrial sector. Let’s look at the main benefits and drawbacks of blockchain.
11:07 26 August 2020
Today's world is changing more rapidly than ever. It's thanks to the development of the high tech innovations that influence every segment of our life. Never have so many domains seen so many innovations follow one another, whether at the organizational, relational, or technical level. One of these innovations is blockchain technology for storing and transmitting information transparently and securely without an intermediary.
You might think that this technology only benefits insiders, but the blockchain is changing everyone's lives, even those who don't have a hundredth of Bitcoin in their pockets. However, as with any innovation, there are some doubts and unknowns which we will tackle here.
Is the crypto revolution underway?
Have the cryptocurrencies and tech the power to bring about changes of revolutionary magnitude? It's still difficult to say, but in recent years, these technologies have managed to extricate from a small circle of amateurs to impose themselves on the general public. The most significant changes are sure to come since the applications of this technology are innumerable: from the financial transactions, small contracts, monitoring of works on the art market, to that of agrifood products, or even electronic voting, and many more.
Blockchain represents the most revolutionary change in the banking sector. Today's banking sector needs an entirely fresh system. The most successive banks will be those with their own fin technology based on blockchain and cryptocurrencies. Today we even have crypto only brokers that can help you access the crypto market and sell or buy cryptocurrency such as Etherium, Ripple, Litecoin, and of course, Bitcoin as the most prominent one.
Blockchain technology - Great features for businesses
Two or three years from now, using Bitcoin - or some other cryptocurrency - may be as common as our use of PayPal. All e-commerce sites may offer the option to pay in bitcoins alongside traditional CB, Visa, PayPal, etc. In this way, crypto can help small businesses and entrepreneurs to get paid in more currencies.
Blockchain technology means enhanced business transparency
Blockchain and BTC are the most open financial systems to date. Multiple signature authorization is a feature that enables accounting transparency. Multi-signature means that several people must sign a payment, which offers more security. In the very nature of a blockchain are public transactions, which enhances business transparency.
Insurance against financial crisis
Some see the cryptocurrency as a means of insuring against financial crises in an increasingly uncertain context: American student debt bubble, national debt bubble, rise in interest rates. Besides, the decentralized operation of cryptocurrencies makes it possible to do without traditional banking involved, towards which the public's distrust has increased since the 2008 crisis.
Anonymity of blockchain technology
Crypto transactions are anonymous. Everyone can open a digital wallet over the Internet without checking or having a credit history. It's especially beneficial in underfunded regions and third world countries where most people find it difficult to access money.
Helping unfavorable financial systems
When we are talking about the benefits of cryptocurrency, we are primarily talking about the African continent. In African countries, crypto platforms help people access the global economy easier and earn crypto income. Many companies are planning to issue the crypto debit cards to African citizens to surpass the complexity of crypto transactions so they can buy goods and pay for service without using digital wallets or hardware and private keys. Cryptos helps the African corporate sector to grow business far off geographical boundaries.
Some drawbacks of cryptocurrencies
Before dealing with cryptos, you should be aware of its strong points and the drawbacks that may withhold this technology's mainstream adoption.
The complexity of blockchain technology
The way blockchain tech works is unknown to many, and also most people are not prepared to take responsibility and take care of their assets and also cannot securely manage their private keys. Many Bitcoin private keys have been lost, contributing to Bitcoin's deflation and appreciation.
Irreversibility of transactions
Crypto transactions are irreversible. It means that once the money leaves your digital wallet, there is no way to get it back. Although many management tools are in development, "buyer protection" is not yet used with Bitcoin. Conversely, it can be beneficial for traders, as accepting BTC eliminates the risk of chargebacks.
Not all stores and service providers accept cryptos
The emergence of cryptos challenges many businesses and retailers to switch to alternative payment solutions. Many big players have done that, but it's still not enough to make cryptos the mainstream payment method. The big changes are yet to come in correlation to the growth of the e-commerce sector and drop shipping.
As you can see, the revolutionary side of blockchain tech is not without compromise. Despite this, Bitcoin is an evolving system that is here to stay. It's because it offers too many benefits that consumers seek in today's currencies, such as transparency, flexibility, and decentralization. Expanding all additional purposes of blockchain technology in different sectors, doubly underpin this point of view.