Alternative spending solutions are becoming more prevalent today, giving consumers additional avenues to spend their hard-earned cash.
As faults in economic systems become apparent – as in the case of the massive Equifax data breach – consumers begin looking for alternative sources to safely spend their money.
Some are considering avenues like bitcoin and Litecoin as a solution, cutting out the middleman (i.e. banks and government).
How does the exchange work? Take a look at the image below, provided by BlockGeeks.com, followed by some of our pros and cons.
Each bitcoin has a unique, detailed history, making it nearly impossible to fake or replicate. This story is generated through the blockchain ledger that follows each and every digital currency throughout its entire existence.
Cryptocurrency has more measures in effect to protect the user from identity theft, as provided by each unit’s blockchain.
Payment fraud is unlikely with the use of cryptocurrency payments.
Direct transfers result in an immediate, indisputable settlement that cannot be altered by the sender.
Typically, there are no transaction fees for cryptocurrency exchanges, as each bitcoin miner is compensated through the network with newly issued bitcoins.
Cryptocurrency could become illegal due to its former use in purchasing illegal items and lack of formal regulation.
There is no way to protect your digital currency from fiduciary fraud or if you forget your password, have a computer glitch.
Digital currency can be easily stolen if not kept secure, as in the case of a Bloomberg anchor who flashed a Bitcoin bill on TV long enough for a viewer to steal it.
There is only a finite number of bitcoins that can be created, capping out at 21 million.
Bitcoin has shown to be 5 times as volatile as gold and more than eight times as volatile as the S&P 500 over the last three years.
If you’re looking to break into the cryptocurrency sector of banking and finance, please contact us!