More and more people are turning to the use of cryptocurrency over other more traditional methods of currency. There are several reasons for this; one of the reasons is that people think cryptocurrency is more secure than traditional currencies. There are a few cryptocurrency facts that support this argument.
Cryptocurrency is much more password protected than other forms of currency. For example, if someone steals your wallet, there’s nothing stopping them from spending all your money. While they can’t use your debit card to withdraw money from an ATM without knowing your PIN, they can use your debit card to make purchases. Depending on the credit card company you are using, a thief may or may not be able to use your card without knowing the PIN code. However, with your card, they would have most of the information they would need to call your credit card company, impersonate you, and get a new pin. It’s even easier if you keep your Social Security card in your wallet, which you absolutely should never do. Although this is not possible, pins are only made up of four digits, so it is difficult, but not impossible, for someone to guess your pin.
To use cryptocurrency (using Bitcoin as an example), you need to remember your password to access your money. These passwords are usually not like pins. You can use numbers, letters, symbols, and more to create a password. That you use single sign-on or some other method, your money will be much safer than using a pin code. Cryptocurrency is not held in a physical wallet, so it is much more difficult to steal as well. While the average pickpocket can steal all of a person’s money, it takes an advanced hacker to have a chance to steal the cryptocurrency.
One of the main things that sets cryptocurrency apart from other types of currencies is that it is not tied to any country or group of countries (like the euro). Its value is also not attached to a physical object, such as gold, as was used with the gold standard. However, it should be noted that no country currently uses the gold standard, as most governments abandoned it for fiat currencies (where each country’s currency has its own monetary value) after the 1930s. Moving away from the gold standard has greatly varied the value of each country’s currency relative to others and has had a significant impact on inflation (arguably negatively).
In addition to not being connected to a country or a physical object, cryptocurrencies are not held in a bank. This helps get rid of some of the risks associated with saving money in a bank. The average bank is making a big part of the change by investing clients’ money. For this reason, much of the money deposited in a bank is not actually held in the bank. Banks keep cash on hand to process day-to-day transactions, but by no means hold all the money people have deposited in their checking and savings accounts. If a bank’s investments lose money, the bank itself loses money. If a bank loses too much money, it must close. This means that people who have saved money in the bank may also lose money. Banks that have FDIC or NCUA insurance will be able to reimburse customers up to $ 250,000 per account if the bank goes bankrupt. However, if a person has more than $ 250,000 in their account when the bank goes bankrupt, there is no guarantee that they will get that extra money back.
Like any other type of currency, there are certain risks associated with using cryptocurrency. Looking at the facts, cryptocurrency seems to be one of the safest options. Are you going to invest or stay with traditional currencies?