It is fair to say that cryptocurrencies receive their fair share of both positive and negative stories in the media. Some true, some false, and some even over or under exaggerated.

For example – for many outside the crypto world – news stories about criminals using cryptocurrencies on the dark web to pay for illegal items create a really negative opinion. Just as much as the wonder of the price of Bitcoin today compared to just a few years ago, which makes people think what if I had invested then? Is it too late to invest today?

But what crypto really is, is a new form of currency. A digital currency. This digital currency has a completely different system to regular currencies like the US Dollar or Euro. These traditional currencies are controlled by the governments of the country they are from. This control dictates how much of the currency is in the system and even how much it is worth.

With cryptocurrencies that control is held by the users of the currency, there is no governmentor group of executives who can take that power away. In this week’s post, we will talk about why using cryptocurrencies will benefit us all as individuals and provide a better and fairer way to see and use money.

How Cryptocurrencies Work

Cryptocurrencies all use something known as distributed ledger technology. Very simply, this technology places data in the hands of users, and away from one centralized database. For example, your personal details and banking history will be stored on the banks’ servers – more than likely at their headquarters – and only accessible to you if you log in to your account.

Not only does this mean that the bank stores and has access to your details and banking history, but also any other authority who has the power to view this, e.g. Police, Tax Office, Courts, etc. With cryptocurrencies, only the individual has access to this information, as they store it themselves.

Distributed ledger technology not only includes the blockchain, which Bitcoin is built upon, but also the faster and more efficient DAG-chain, which Dagcoin uses. This technology is not only being used by cryptocurrencies. Walmart, for example, is using it in warehouse robots to speed up delivery times.

The Added Security of Cryptocurrencies

Distributed ledger technology doesn’t just provide more anonymity for users of cryptocurrencies, but also added security. For example, a cryptocurrency transaction cannot be reversed or a chargeback made. This means that once a payment is received it cannot be taken away.

A few years ago I worked for a company where some clients (very few I must say) would buy a product, it would be shipped to them and then they would chargeback the money. Giving them the product and their money back, leaving the business at a big loss. Because notification of this chargeback from the bank would likely not come for a couple of weeks, by then the customer was almost certainly long gone – a clear case of fraud. Over the past 6 years identity theft – just a small fraction of all fraud – has cost people in the US more than $100 billion.

Identity theft using a traditional currency can be done in so many ways. From stealing your card details when you buy something online to skimming and cloning your card in a restaurant, to taking bank statements or other documents from your post box or trash. The possibilities are almost endless. Because cryptocurrencies do not use bank cards, no physical documents exist, and only the user has access to their wallet, the chances of identity theft are greatly reduced.

Because the individual is the sole owner of the encryption keys that give them access to their wallet and crypto identity. This means that only that person can withdraw or transfer money from their crypto wallet. If there were to be a financial crisis, like in 2008. Although the value of the digital currency may go down.

You will not find yourself in the position of millions who saw their entire life savings lost when the bank they used went bust. And, it doesn’t stop there. All transactions using a cryptocurrency are stored in a public ledger (a public record of all transactions), which is viewable to anyone.

You would think that because this information is public it makes it less secure, however, all wallet details and the identities of coin owners are encrypted. This not only makes crypto secure but also a more transparent and accountable way of using money.

Available to All

Using distributed ledger technology to create a currency doesn’t just make it more secure than regular money, but more accessible. Over 2 billion people around the world have access to the internet, but not to a bank account. This is because banks do not see these individuals as profitable for their business, as their earnings and transactions are seen as too small.

Because cryptocurrencies use distributed ledger technology this gives these people banking possibilities that they have never had before. Somewhere for their salary to be paid, to store their money safely (not cash in their wallet, piggy bank, under the bed, etc), to send money in an instant to friends and relatives, to start or even grow a business.

For example, an individual with a small business in Africa making wooden tables and chairs, who sells these for cash at the local market. With a cryptocurrency like Dagcoin has a world of new possibilities. The free suite of software known as Dagpay not only enables them to start accepting Dagcoin payments at their market stall.

They can also send invoices to suppliers or distributors and receive payment in Dagcoin. However, the biggest possibilities come online. By setting up a webshop and downloading the simple and free add on they can begin receiving Dagcoin payments for orders from all around the country, or even the world. Taking their business to a whole new level.

Conclusion

Cryptocurrencies offer a world of possibilities for people that fiat currencies just cannot offer. By using distributed ledger technology, this puts all banking information and personal details in the hands of the user, not the banks, government, etc.

This not only gives people more control over their money, it is safer too. With no bank card, paper statements, or centralized database, theft and identity fraud are much less likely. Cryptocurrencies give people the opportunity to create the lives they want.

People who may otherwise be rejected by banks, now have the chance to save money, build a credit history, start a business, and much much more. Start creating the life you want, start using Dagcoin today…