Could cryptocurrency be the answer to a universal currency?

What is cryptocurrency?

If you don’t know what cryptocurrencies are then you must have been living under a rock – or have no access to the internet. Cryptocurrency, also widely known as crypto, crypto-currency or Bitcoin, is a digital form of payment created in 2009 as a new element within the financial world. Historically, physical cash and currencies are filtered through banks and government, with an audit trail left behind so those in charge can monitor where money has come from and where money is going. Cryptocurrency, however, is completely virtual and the central banks and governments have no power or control whatsoever over it.

Crypto removes the middleman that is traditionally in the way between consumer and merchandiser, allowing the consumer to be in total control of their money and how they spend it or trade it with anyone around the world. It has been said that a cryptocurrency such as Bitcoin will inevitably become a worldwide universal currency and it is evident that our growing population is investing in it. Cryptocurrency experts have stated they believe that Bitcoin will eventually take over the world and become the world’s currency. Set to double in valuation to over 10 billion dollars, even after the 0.4% fall it took, we can see exactly why he is so confident, as it’s still up 70% year-to-date.

Benefits of using crypto without conversion

One of the biggest benefits if crypto becomes a universal currency would be the fact that the consumer will not have to pay the exchange rate when converting from one currency to another. As crypto is accessible globally, there would be no need for conversion rates. You would be able to send digital money to someone on the other side of the world within seconds, without having to pay the bank the 2% exchange rate that you would have if you were to convert the dollar to the euro, for example.

Physical stacks of money are held in central banks under control by governments, whereas cryptocurrency is completely digital. Using a technology database known as blockchain, a network of computers that share the same history of transactions are coupled together by computer servers called nodes. When buying or selling crypto from anyone around the world, you are essentially trading a virtual token for a virtual token. This means there is no need for a government to be involved in this transaction, as it is strictly peer-to-peer. This allows the consumer to be in total control of their money from start to finish.

Is this a good thing?

A number of people would prefer this form of payment as it means that they will get more for their money in the long run. Exchange rates, much like the stock market, go up and down over time and can differ from month to month. Having one universal currency that does not need a conversion rate means that the consumer gets what they paid for and neither party misses out. You also have access to a lot of different avenues online to choose from, as seen in the OKX cryptocurrency list. Many financial networks have noticed that national currencies were starting to show signs of weakness, whereas the uptake and use of crypto is increasing every day, with people investing and creating digital wallets for themselves.

There are many trading exchanges to invest in across the world, some more popular than others. Cryptos such as Bitcoin and Dogecoin have proved to be the most popular so far, and their value is increasingly better than the new digital currencies that are currently being created and invested in. Many companies now allow Bitcoin as a form of payment, showing a clear indication that digital currency is not a short-lived trend but that is set to be a new tradition for the new world.

With the population ever increasing, it is no surprise that financial giants such as PayPal and AT&T have also invested in cryptocurrency. From allowing crypto as a form of payment to creating a service that allows their customers to buy and sell crypto through them, it is clear that they want a piece of the digital currency pie. Although it is not 100% certain that cryptocurrency will become the only currency used around the world, it is slowly but surely becoming the preferred method of payment for the masses. Considering the many benefits listed here, it wouldn’t be a surprise if it becomes a universal currency.