5 Reasons Why Cryptocurrencies Should Be Learned In Universities

After 10 years of existence, cryptocurrencies are no longer a novelty in the word of mediums of exchange. They are already developed to the point where important international events, such as the presidential election, can have a notable effect on their market. In just a few hours after the official announcement of the 46th US president, the cumulative cryptocurrency market cap showed a significant fall from $450 to $433 billion.

Reasons for the constant popularity increase of this type of assets are deeply rooted and connected with a specific digital technology and its ability to use many benefits of the electronic cash system, mainly tailored for the network financial services.

Forgery-resistant technology

Cryptocurrency transactions or "mining" is based on blockchain technology, a revolutionary way of recording and distributing information digitally between parties involved in the transaction. During this process, every change is registered linearly and chronologically into the chain, which is stored in the computer of each user. The tests, implemented into the network, require every participant’s computer to prove its validity. This is an additional form of security from potential malicious manipulation. However, since all information about cryptocurrency is stored in the computer, if any type of data discarding accidentally happens the earning will be eternally lost.

Privacy guaranteed

The user of the Bitcoin or any other cryptocurrency can’t access any personal information of other users before, during, or after the transaction. Although transaction information is not completely anonymous, the only personal information obligatory for every user is to leave the username and digital signature. The trust issue is solved with the test procedure or "consensus model" which every computer that wants to join the chain has to solve.

Faster and cheaper

Traditional banking is a system established on financial institutions and administrative procedures. Due to the complexity of the system and the way it operates, even the simplest transaction requires at least a few hours and human resources. As the opposite of this, cryptocurrency transactions are fast, even though not instantaneous. The usual transaction time is from 10 seconds to 10 minutes, depending on the type of digital currency.

Owning a bank account comes with many fees and charges. Besides the standard account set-up and maintenance fees, bank services, or products such as domestic and foreign transactions, an overdraft can raise costs sky-high. Cryptocurrencies are stored in digital wallets, completely free of charge. Transactions between wallets can be charged, but with very small fees.

Cutting out the middle man

Claiming that with further use of cryptocurrency things will never be the same is hardly an exaggeration. Managing or replacing bank products and services with digital assets is not only possible but also much faster, cheaper, and easier. For instance, bank guarantees, transaction tracking services, smart contracts with particular conditions can all be automatized and managed through blockchain networks. The main advantage of this system is complete decentralization that liberates any activity from a third party involvement and the costs of its service.

Endless possibilities

Currently, more than 1200 digital currencies exist and circulate worldwide. Some of them are created to serve the specific needs of a particular industry while others have a more universal nature. Unlike other electronic cash systems which are usually owned by a third party, in the case of digital assets, the wallet with cryptocurrencies belongs to its owner only. In other words, no one has the power to freeze, misuse, hold, take away, or access the assets in any way. All thanks to blockchain technology. However, relating this technology to cryptocurrencies only would be a waste of a perfectly good opportunity to start a new era in the history of mankind.

Conclusion

Based on the principle of cryptocurrency and blockchain, and the possibilities of this technology, it’s safe to predict that many industries and society, in general, might soon start using it for voting procedures, smarter supply chains, better healthcare, or more efficient insurance services. The future of the world belongs to young people who should have the ability and knowledge to put these and similar technologies to good use. Regardless of what they study, lectures about cryptocurrency should not only be included in the economy-related university programs but equally available for all students.

Author Bio:

Michael Gorman is a highly skilled freelance essay writer online and proofreader from the UK. Being interested in everyday development, he writes various blog posts and discovers new aspects of human daily existence. Feel free to contact him via Facebook or check his Twitter.