ADVANTAGES AND FAULTS OF DIGITAL CURRENCIES

Payments made using cryptocurrencies have many advantages that you will not find in conventional money payments. The fundamental is the freedom associated with the use of cryptocurrencies. They guarantee the possibility of relatively quick payment of the amount to any place in the world (with Internet access) 24/7 – without days off and without limits. Therefore, they allow greater control over your funds than, e.g., traditional transfers or international money transfer services. Compared to traditional bank transfers, the concept of a trusted third party is limited in cryptocurrencies  gdax fees (cryptocurrency exchanges have become part of it, which are mostly not decentralized, which exposes users to risk). Therefore, the participation of banking institutions, which traditionally have the function of a controller, is not needed. The community of a given cryptocurrency exercises supervision over it, while the rules governing the system are stored in computer code, which becomes “code” (code is law). Its changes are possible, but sometimes it is very difficult – the larger and more diverse the interests of individual groups of its stakeholders are, the more difficult it is for consensus. This is clearly seen in the example of changes in Bitcoin.

Distributed Character

Because data in the bitcoin is most often stored on thousands of devices under the so-called distributed network of nodes, the system  gdax fees and the data itself are highly resistant to technical failures and attacks. Each node participating in the network is able to replicate and store its copy of the database, and thus there is no single point of failure physically: in other words, disconnection from the network or failure of a single node does not affect the availability or security of the entire network.