In today’s world, cryptocurrencies often replace the classic methods of payment. They connect two people who want to buy or sell products and services without the mediation of an unknown person (bank). Cryptocurrencies are also seen as the beginning of the new age and greater IT and financial literacy is needed to be able to dispose of and use them. Anyone with an Internet connection can become part of a “modern” financial system.
Virtual currencies or cryptocurrencies are widely accepted for international payments via the Internet, but also for investments. They are not issued by central banks, they are not linked to a private bank account, so by using cryptocurrencies for international payments, transaction fees are avoided, but also all other regulatory processes that are more common for traditional international payments. Such payment methods are resistant to inflation and are significantly less dependent on countries’ monetary policies. However, there are also many dangers and uncertainties that arise from the nature of cryptocurrencies.
Cryptocurrencies are actually records of certain values that are stored in electronic banknotes. Bitcoin and all other cryptocurrencies are created all over the world by solving complex computer equations. They can also be purchased through ATMs or online exchanges. Numerous websites provide electronic wallet services where cryptocurrencies are stored and stored.
Some people buy them only as an investment, hoping that their value will increase. Caution should be exercised, as cryptocurrency trading markets are highly volatile. Also, it should always be taken into account that there is no protection of consumers or users of the system, since there is no address or contact to which an individual can turn in case of any irregularities.
We can certainly classify cryptocurrencies as the money of the new age. Around the world younger generations are coming into force – they are increasingly computer-savvy, but also financially literate, so electronic money is imposing itself as a new means of payment. As the world’s connectivity becomes more striking, some countries themselves organize electronic money in their central banks to keep pace with the needs of the world, but also in response to new global challenges.