Advantages of using Digital Currencies
Digital currency is considered to be one of the revolutionary technologies as it changes the way of transactions of a person or any institution to transfer funds instantaneously, securely and without any third-party involvement. These currencies have huge potential in expanding the international commerce, support financial inclusion and also transform the way of we shop. Increase in popularity of cryptocurrencies has led to the rise of numerous digital wallets where people can store their coins.
The advantages of using Digital currency:
? Bank Transfers: are very slow and are a very tiring process as international bank transfers take up to 7-8 days as they have to deal with correspondent banks and follow their country specific clearing houses at both ends of transaction. So, payment methods are very archaic and the people need to overcome challenges and frictions. The very solution to these problems is digital currencies as they could be paid instantly, cheaper and safer than traditional methods. Digital currency technology moves money around the globe in seconds by finding the most efficient path between trading partners in any country on the globe.
? Digital currency is a way to boost global remittances: Every year migrants from developing countries send home more than $500 billion in remittances, a sum that exceeds foreign direct investment. For each international transfer for sending around $200 about 6-10% total fees is charged, so digital currency can be used as a help these transfers become faster and cheaper. Using virtual currency, private users could even send money directly to their families via mobile phone, with the only remaining fees being those charged by the currency exchanges.
? Digital currencies help e-commerce: Online fraud is forcing online merchants to turn away business and these transactions are very common in global transactions so many firms do not accept international payments. A digital currency transfer is immutable. So, this increases the flexibility and at the same time eliminates the risk of fraud for merchants allowing them to perform global transactions with ease. Also, these currencies let customers send funds as easily as email, online shopping is turning into a very smooth and convenient process for customers from anywhere around the world. They also allow small businesses in developing countries to engage in a more global e-commerce. Also digital currency help traders in selling and expanding the local businesses goods to bigger markets around the globe.
?A New Asset Class: In 2013 then Federal Reserve Chairman Ben Bernanke wrote in a letter to Congress that bitcoin "may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system." These Alternatives are rapidly moving into the mainstream retail market. New alternative investment vehicles and new platforms have become available to the high-net-worth retail sector in the past decade. Morningstar identifies three types of "alts": nontraditional asset classes, nontraditional strategies and illiquid assets. Some data show more diverse portfolios have performed better over the past 25 years than less diverse ones, but older advisors are still hesitant to add alts to client holdings. This hesitation is because most traditional asset managers have not yet made the internal changes required to capture opportunities in the mainstreaming of alternatives. Adela Investment began its journey in 2016, and now offers the most diversified turn-key alternative solutions for hedge funds, accredited investors, and family advisors.
Chief Information Security Officer/Cryptocurrency Advisor/ Speaker & Educator
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