Cryptocurrencies are important for multiple reasons:
They are decentralized
There isn’t a central issuing authority, such as a central bank for normal currencies. This is crucial in terms of accessibility, ease of use, security, and application.
They’re owned by everyone
Cryptocurrencies use a peer-to-peer network. There are exchanges where you can perform transactions; however, you can generally just transfer whatever agreed currency you want to any other party; it’s fast and secure.
Transactions are fast, easy, secure, and global
Unlike regular money transfers, there is very little added complexity to making a transfer with a cryptocurrency. Transactions are much faster (due to the decentralized blockchain model cryptocurrencies use), more secure, and global.
Cryptocurrencies offer a high form of confidentiality
Transactions performed via cryptocurrencies are relatively confidential, compared with regular money transfers. This is a two-edged sword; then again, there are always pros and cons.
Technology
Last but not least, the existence of cryptocurrency relies on groundbreaking technology: blockchain. In a nutshell, the blockchain is a system for recording transactions – a digital ledger that is distributed and copied onto multiple systems – the entire network involved in the blockchain itself. This makes it very hard to cheat or hack the transactions performed within this system. This technology extends much further than merely cryptocurrencies and has found applications in multiple aspects of life.
