Since the launch of Bitcoin in 2009, cryptocurrencies have quickly gained ground in the financial world. In the beginning, blockchain technology was seen as something niche, appealing only to enthusiasts and people already interested in the field. However, over the past 15 years, digital currencies have become increasingly popular, also becoming part of the news and reaching a broad audience, including both the general public and financial institutions.
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The growth of exchanges has facilitated the buying and selling of cryptocurrencies, which have proliferated during this period. Additionally, public education about how digital currencies work has helped establish this technology as a viable alternative to traditional payment methods. In sectors and establishments where cryptocurrencies are accepted, including several in eCommerce, users enjoy various advantages when choosing this method. Check out some of these advantages below:
Speed
In Brazil, for example, Pix stands out as a safe and instant financial transfer method, moving billions of reais, similar to what happens with SPEI in Mexico. However, in other countries and situations like international banking operations, speed is an advantage for cryptocurrencies. Instead of waiting for days, a transaction can be completed in seconds or minutes, depending on the network used, even if it involves two or more different countries.
Decentralization
This is one of the key aspects that governs the world of cryptocurrencies and, consequently, generates many of the other advantages of using digital currencies. Through blockchain technology, the functioning of “cryptos” does not depend on a central entity, as is the case with traditional methods. Transactions do not go through a single regulatory institution, giving users more autonomy. This can be especially important in countries with authoritarian regimes or strict financial regulations, where there is greater control over access to the banking system, allowing for more economic freedom.
Transaction Costs
Another area where cryptocurrencies stand out is transaction costs. Again, this depends on the currency and network chosen and needs to be analyzed on a case-by-case basis. However, in general, the fees charged for cryptocurrency transfers are lower than traditional banking fees, especially in situations where a banking intermediary is required. The difference is even more significant in transactions involving different currencies, where traditional methods also tend to incur exchange fees.
Security
In traditional banking methods, like credit cards and Pix itself, there are plenty of fraud methods, through which scammers can obtain sensitive data and cause significant financial harm. In the world of cryptocurrencies, as with any area involving money, users must also take precautions. Avoiding sharing confidential information and being cautious of viruses and phishing attempts are some of the points that require attention.
The technology, on the other hand, is highly secure and employs encryption to protect data. Since transactions occur on the blockchain, they are immutable, meaning they cannot be forged. Additionally, the system is decentralized. This means that a hacker attack could not obtain the information of a vast number of clients all at once, as can happen with traditional methods, where a central point exists.
Privacy
One aspect that also attracts people to using cryptocurrencies is the privacy that the method allows. Users are identified only through addresses, and there is no need to share personal information, as would be the case with a traditional bank. In a context where protecting one’s own data is increasingly important, the use of digital currencies can help users safeguard their financial privacy.
Global Reach
To make cryptocurrency transactions, a person only needs access to the internet and a smartphone, for instance. Thus, this model of transaction has the potential to reach more people than the traditional banking system, which, despite its global scale, still does not reach the entire population. This allows for the inclusion of more people in a global transaction network, facilitating the transfer of funds between different countries and bringing more convenience to the process.
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