Cryptocurrency is a new phenomenon that revolutionizes the way we conceptualize payments. Being based on a completely new approach, it allows us to draw a range of expected and unexpected advantages out of it. The number of areas where Bitcoin can be used for payments is constantly expanding, and now this payment option permeates also the realm of web hosting, with an option to rent VPS server with bitcoin acceptance.
What is the specificity of Bitcoin payments and how you can benefit from it when paying for your hosting plan? Let’s see.
What is cryptocurrency?
To understand the good things about Bitcoin, it’s essential to figure out what cryptocurrency is and its principle of operation.
Cryptocurrency is a type of digital money that is based on blockchain technology. A blockchain is a public ledger that contains information about all the transactions ever done within the network organized into blocks that are stored in a decentralized way. In this way, we get something that once launched works on its own as long as there are actors participating. Besides that, it’s nearly impossible to hack the system as the information about all transactions is distributed throughout the network, while cryptography helps keep transactions secure and sensitive information unavailable for eavesdropping.
As you can see, crypto depends on quite a different set of principles than traditional bankings do. Although it, for now, can’t be a complete substitution for traditional payment methods, it is already used on many occasions, not least for economic reasons.
Economic benefits of crypto
Lower Fees. Traditional financial institutions and related payment methods, first of all, banks and credit cards are organizations created by people who are engaged in creating money from money. For this reason, fees that originate from this or from that source are inevitable, so you’ll have to pay some extra amount of money on a whole variety of occasions.
Since cryptocurrency, however, doesn’t rely on particular centralized organizations and is in a way self-sustaining, the fees associated with it will be, if not absent, lower in the absolute majority of the cases.
No Particular Fees for International Transactions. Another point is that traditional currencies are mostly connected to particular nations. This results in additional fees when your money has to cross the border and in many cases the need to convert the currencies which results in additional expenditures. This problem is, too, solved by cryptocurrencies since they are fully “border-agnostic”: no matter where you are and where is the one or from whom you want to transfer money, this won’t result in any form of additional fees.
Security and Fraud Prevention. The way cryptocurrencies work gives an additional dimension of security to the whole transaction procedure. In this way, chances that security fails during the transaction, that your assets get hacked, or that transaction records are altered, are almost 100% minimized.
Ownership and Control. Using cryptocurrency you don’t rely on any centralized institution in storing your valuable assets. This excludes cases of financial loss due to technical issues in the banking system or financial institutions getting bankrupt.
Access to Investment Opportunities. Cryptocurrency is a relatively recently emerged field with a whole lot of possibilities for financial development. Although learning to earn by investing in cryptocurrency will require you to learn a bunch of new stuff and invest your time and attention in it, it may greatly pay off eventually. By using cryptocurrency as your first priority payment method on as many occasions as possible, you’ll facilitate your access to further profitable uses of cryptos.
Innovation and Technological Advancements. As already mentioned, cryptocurrency is a relatively young and rapidly developing form of currency with a lot of perspective developments running around it. By using cryptocurrency, you’ll invest in a better understanding of modern tendencies, increasing your general level of economic and technical erudition.
Smart contracts. Smart contracts, another feature of cryptocurrencies, are a kind of digital contract whose terms are written directly into the code and that is automatically executed when certain conditions are met. This gives the user an opportunity to automatize certain actions, which makes their life generally more convenient. Smart contracts are still fully reliable and secure which is ensured by the transparent and decentralized nature of blockchain.
Conclusion
Cryptocurrency is relatively new, progressive, and developing in a quite rapid pace way of payment. Using cryptocurrency will offer you considerable economic benefits minimizing your extra expenditures as well as opening a whole lot of new opportunities to benefit from the features of blockchain technology. We hope that this information was helpful, stay tuned!