Hi there this is Faiz and do you know? in the financial world, Crypto has quickly become a buzzword and now it's time when crypto is not just for investors or tech enthusiasts anymore. The reality is that more and more people have started using it as an alternative to traditional banking systems, and the number is still increasing. But we need to think about what exactly is driving this shift. Let's understand and take a closer look at what it means for the future of finance and how crypto is being adopted as an alternative to traditional finance and banking.
Cryptocurrency operates on blockchain technology and it is decentralized
At its core, cryptocurrency operates on blockchain technology and it is decentralized. Decentralization is the main factor for any cryptocurrency and you can say the main aim. This means there is no central authority or third party like a government or a bank, controlling transactions. Now you can say what the process then the answer is a network of users and those are the validators and miners they ensures that every transaction is recorded and verified. You can say that This is a stark contrast to traditional banking and finance, where centralized institutions verify transactions, and manage funds, and not only this but they also charge fees for their services. but in the decentralized network, there are miners.
Talking about the promise of lower fees then it is the reason people are turning to the crypto field as an alternative to traditional finance banking. As you know already Traditional banks often charge a variety of fees and these fees are higher, such as wire transfer fees, monthly account maintenance fees, ATM withdrawal charges and there are some hidden charges too. When it comes to crypto then crypto transactions typically have lower fees, especially when it comes to cross-border transfers. For example, sending Ripple from one country to another country around the world is much cheaper than using remittance services like Western Union and our so-called traditional banking services.
Another key benefit of crypto is the speed of transactions
The speed of transactions is another key benefit now when we see Traditional banking then it can take days to process international wire transfers, especially when there are different currencies involved. This time-consuming process is a real headache for individuals and businesses who need to move money quickly. on the other hand, regardless of geographical location, crypto can process transactions almost instantly anytime anywhere. Whether you're paying for services overseas or sending money to a friend in another country, cryptocurrencies like Bitcoin, Ethereum, ripple, hive, or even stablecoins can eliminate the high costs and long wait times associated with traditional bank transfers. This is the specialty of crypto.
The finance world has been rapidly changing since crypto birth and this is improving our lifestyle and also protecting us from all the money-related issues that people face. Looking forward to sharing more such articles with you but you have to stay tuned and for that follow me on Hive.
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