The purpose of cryptocurrencies

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This has puzzled many who seeks to understand cryptocurrencies really they often ponder what is it's purpose? Is it an asset or it a currency or both? They wonder what's really behind the creation, I mean we already have traditional assets before what's the need for it and we have our fiat currency, was there any need for a digital currency, and since it's been created what use have it served and what was the driving force behind the creation, it's true purpose so to speak, follow along as I break down the purpose cryptocurrencies serve because they indeed do serve a unique purpose.

What purpose do cryptocurrencies serve

One of the purpose of cryptocurrencies is decentralization which it uses to help us to avoid over reliant on the financial services provided by the traditional financial system which is centralized. Yes because of the presence of cryptocurrencies which operates on blockchain it allows it to offer it's users total control over their funds, no one absolutely no one can meddle in their account operation and help ensure transparency whilst ensuring the government claws can dig in deeper for the absolute control it craves over the lives of their private citizens, so yes decentralization is a valid purpose cryptocurrencies serve.

Cryptocurrencies was also created to serve the purpose of making payments digitally, it's to be used as a medium or a way in which digital transactions are facilitated in a very secure manner with increased efficiency and the good thing is that unlike banks who acts as third parties bringing in their own charges for being the middle name this is not so with cryptocurrencies that offers much efficient and secured transactions at a much reduced cost, how is that for a usecase.

Also cryptocurrencies creation has made or offered financial inclusion to a vast majority of the world's population who were left out formerly because of the gap created by the traditional financial system the form of access to service offered by cryptocurrencies is such that with access to internet one could be involved in all financial services which has served the purpose of creating financial inclusion for the unbanked masses of this corrupt system.

Cryptocurrencies can also be used as a hedge against inflation, infact one of the reason bitcoin was created was to solved the problems in the traditional system then, the economic breakdown and all so for a fact cryptocurrencies can serve as a major hedge against inflation, cryptocurrencies asset like bitcoin during times of inflation like now could be used to restore the value of users funds as most times when government of a country makes decision or when or the economy of a country is in a downtrend most likely to be affected will be the countries local currency as it will lose it value against other major currency of the world like us dollar, like what's happening to naira in nigeria currently. So in this case the countries population could flee to bitcoin to act as a hedge against the deteriorating currency of the country, such is the purpose of cryptocurrency, a wonderful store of value.

Today also bitcoin serve a good investment purpose, it's viewed also as an asset class which means those who are looking for asset to invest in could run to bitcoin as it's volatility ensures there is a good chance of a decent return from those who invest in it and the limited supply ensures that overtime those invested in it would also be profitable in the long-term as it has shown the ability to offer higher gains than traditional asset class overtime, bitcoin investment infact has made many early investors billionaires, so bitcoin serves as a good investment choice for any who decides to venture into it which is a personal choice ofcourse.

There are several privacy coins which also serve the purpose of providing privacy to ensure that the data of a user as it pertains to their financial details are secured and well protected, such is the value privacy cryptocurrencies project also provides.

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Conclusion

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Indeed it's clear to us us and for any who don't already know what they true purpose of cryptocurrencies is, a wonderful gem the like of which the world hasn't seen before built on blockchain technogy, a sophisticated and well secured technogy which helps cryptocurrencies offer decentralization and maximum security to its users whilst making sure the unbanked or underbanked population are involved in matters pertaining to finance amongst other things, so no doubt cryptocurrencies serves a purpose one that's of utmost importance.