Even in the face of digital acceleration and the growth of digital environments, not a few still prefer to carry out their purchases with physical money. At most, with cards or ticket payment directly into account. Among the reasons for this are the distrust in relation to technological tools (still present in many people) and the fact of not “drink” the money. It is a very different experience than what people were used to.
Nevertheless, being able to feel money does not make paper more secure than cryptocurrencies. Not surprisingly, only 0.15% of all digital currency traded volume throughout 2021 was related to illicit activity, according to Chainalysis’s 2022 Crypto Crime Report survey. Namely, the choice of who wants to do something wrong is precisely because of physical money.
To understand what is safer in this scenario and the massification of the digital economy, Cointelegraph Español spoke with Rubens NeinsteinBusiness Manager of CoinPayments, who pointed out 5 reasons why believes that Bitcoin and other crypto assets are safer than physical money.
- 1 – Encryption in each information block
Cryptocurrencies, as the name suggests, are protected by encryption that makes it nearly impossible to change digital information. In the case of Bitcoin, this is possible thanks to blockchain technology where the asset is protected by complex mathematical codes.
- 2 – Absence of passwords and sensitive data
Any transaction made on the Bitcoin network has a peer-to-peer feature. That is, the information goes from one point to another, without intermediaries along the way. In addition to being more agile and faster, since the amount passes from one account to another in a matter of seconds, the user does not need authorization from a third party to make the transfer, exposing sensitive financial data, such as an account number or even the use of personal passwords that can be cloned in different ways in digital and physical channels.
- 3 – No chargeback risk
Another important advantage of the peer-to-peer model is the zero risk of chargeback and chargeback with transactions considered suspicious. Who never suspected a purchase on their credit card bill and called the operator to cancel and get the money back, right? Cryptocurrency transactions are almost instantaneous for both payer and receiver. A quick view on the smartphone is enough to check the veracity, depending on the cryptocurrency in question. In the case of the Bitcoin network, it is recommended to wait at least one or two confirmations for small amounts and up to 6 confirmations for large amounts.
- 4 – The (very) small chance of theft
Unfortunately, a country like Brazil still lives with high crime, especially in the big centers. Walking with your wallet in your pocket on a busy shopping street is taking a great risk of being robbed or robbed, leaving you without cards, money and documents. In the case of cryptocurrencies, since it is practically impossible to hack the data on the blockchain, the possibility of theft is also minimal. So regardless of what happens in the “real” world, your assets remain protected in the digital environment.
- 5 – Monitoring and transparency
Even in a scenario where hackers manage to access or manipulate digital information on the cryptocurrency blockchain, there is another advantage that physical money offers little: tracking. In most blockchain networks it is possible to monitor every step of the journey of cryptocurrencies on the web, from its creation to its final destination in any transaction. Physical money is virtually untraceable. Once the theft has occurred, there is little to do. That is why blockchain technology is one of the main allies of investigators and justice to combat the crime of money laundering.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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