Money, marketing, trading, these are three terms that define who we are, from a business point of view, of course, and these three terms are responsible for the world order, financially speaking. For many years, USD was the world-accepted currency, and people from all over the world used it for trading, but just like everything else, with time, even that will change. Even today, we are witnessing some market confusion, and the dollar value is steadily going down. Now, that value drop is not sudden, not even unexpected, but it still proves that things are changing. Who knows, perhaps in just a matter of years, some other currency will become a to-go option for international trading, and the invention of digital money surely didn’t help, at least not traditional fiat currencies.
So what happens when some new currency steps in? Can it replace USD and other well-known currencies? Well, some will argue how leading countries will simply not let that happen, but we are already witnessing market changes. Even governments and national banks point up that using credit and debit cards is a much better solution than using cash. Some even go as far as to say that it is even a much safer solution for our health. But let’s leave that for some other time, and today, let’s talk about cryptocurrencies, how they changed our perception of money, and how they shooked up our financial world overall.
As soon as Bitcoin was invented, we could notice that leading countries were not satisfied with it. Many experts believed it’s all a hoax, a new investment scam, a trick to take away people’s money. But today, a little more than a decade after, we can all see how all of that simply wasn’t true. People don’t want banks and governments to overlook every single transaction they make, and in the world where we cherish privacy so much, why would the fact about how we spend our money be any different? The cryptos already changed so much, so why would international trading be any different? Bitcoin and other cryptos can revolutionize every aspect of the financial and economic system as we know it. The vast potential of Blockchain technology means that this tech can find its purpose in many fields, and international trading is for sure one of those fields.
Shorter waiting time
If we are talking about cryptocurrency transactions, a great thing is the fact that transactions are instant. We are all used to a long waiting period for an international transaction via bank, so claim that it is possible to finish it in a few minutes seems impossible to us. Luckily, it is possible with cryptocurrencies since transactions are fast, and the receiver will get funds at the very moment when some transaction is completed. As soon as funds appear on one account, the owner can use them, which means that there is no unnecessary waiting. It is a big change in international trade, especially when some transactions need to be finished quickly due to some deadline.
Lower fees since there is no third-party
Before cryptocurrencies appeared as a payment method, every transaction had a third party involved, usually a bank, which acted as a mediator between sender and receiver. Fees were pretty high, so it could sometimes happen that charges are higher than the amount we want to send. The situation is different with cryptocurrency since there is no third party involved, and each of them is only between the sender and receiver. Since no third party is involved, fees are considerably lower, which makes cryptos ideal for international trading because there is no need to overpay something. Fees are the same, no matter where you want to transfer your funds, and the only costs you need to pay are those that exchange or payment platform has.
Safer and more confident transactions
Many people are scared of international trade because they worry about their money safety and personal data that need to be shared with a foreign country, so many never expand their business. The usage of cryptocurrency for international trade provides more safety and more confidentiality by reducing opportunities for corruption and collusion. Blockchain technology uses an encrypted key at the start of the chain and shares it with other parties and authorities, which adds to safety and confidentiality. All systems are well protected, which grants that funds will be transferred to the right account since it is almost impossible to hack them.
The same currency for the whole world
A problem that every buyer or seller in international trade face is different currencies with different exchange rates. Not only that they complicate the whole process of trade, but it also means losing a lot of money because of that exchange. Switching to cryptocurrencies is a solution to this problem because we can use them all over the world without worrying about exchange rates. It makes the whole process much easier and simpler, and what is probably the most important, you will not lose any money because of fees and exchange rates. One of the most popular cryptocurrencies is definitely Bitcoin, and if you want to learn more about it and its value, check www.sharecast.com and read everything you need to know.
Sharing information in the supply chain
Another great thing about cryptocurrencies is the blockchain technology behind them, which can be very useful in international trade. It was pretty challenging to track all the necessary product information on the way from the manufacturer to the final sale, but it becomes much easier today because of this new technology. It allows all vendors, from manufacturers, through distributors, to customers to share necessary data, which prevents unnecessary waiting and delays. By using blockchain technology, it is possible to track the product from production to sales. That allows us to know which of them needs to be taken off the market because of some defect, which only speeds up the whole process.