Why is cryptocurrency important?
Image source: Getty Images  From Bitcoin to Dogecoin and the new green alternative, Chia, most of us are aware there are different types of cryptocurrency. But while mainstream adoption remains in the air, the idea of a digital or virtual currency is still intriguing. Compare stocks and shares ISAs If youre planning to open a stocks and shares ISA, choosing the right platform is important. To help you narrow down the choices, weve created a list of some of the top stocks and shares ISAs. Cryptocurrencies are decentralised  Cryptocurrencies are not controlled by any one government or bank. In contrast, governments control most other fiat currencies, aided by banks and economic policy. As such, digital (crypto) currencies challenge us to think about what money actually is. After all, fiat money really only exists because we all buy into the idea that its worth its face value. The interest surrounding cryptocurrency and the fact that new currencies continue to appear, reveal a desire to question the status quo and, potentially, the relationship between money, government and power. Cryptocurrencies are efficient  Users can exchange currency directly between themselves and dont have to rely on third parties like money exchanges. Not only does this make transferring money more efficient in terms of speed, but it also removes associated transfer fees. And because cryptocurrencies are not controlled by banks, anyone can be a potential user. This is significant as figures from the World Bank reveal that as of 2017, nearly two billion adults did not have access to a bank account, which can lead to long-term financial instability and compound wealth inequalities. These all-too-common investing errors can cause you to miss out on the long-term wealth-building power that shares can hold. To help you side-step these pitfalls, and move forward on your path to wealth-building, weve created a free report, The 3 Worst Mistakes New Investors Make. Just enter you best email below for instant access to your free copy. Click here! Cryptocurrency technology has many uses  Cryptocurrency as a concept and means of payment has the potential to change and reshape our relationship with money. But its the technology behind many of them that is of particular importance. Bitcoin, like several other types of cryptocurrency, uses blockchain technology. Think of blockchain as a giant database, but one that cant be manipulated. Data in the blockchain must be authenticated before it can be cemented in a block. If an item cant be verified, it wont be included. Blockchain is considered incorruptible. As such, it can be used for activities where transparency is key  like elections. In this example, the blockchain can store voter details with votes matched up to ensure fair balloting. The fact that data cant be stored unless its verified is an exciting step forward for databases as a whole. This includes healthcare, insurance and government data. Blockchain is also the tech behind smart contracts. Here, when one stage of the transaction is complete, it triggers the next stage. This self-automation cuts the burden of admin, resulting in more efficient logistics. This can be vital in supply chain management and even in allocating aid after a disaster. Cryptocurrency markets are complex and volatile. Plus, like most things, where theres a pro, theres likely to be a con. But whatever the future holds for cryptocurrencies, the tech that drives it is highly likely to stick around. Because ultimately, blockchain has the ability to increase transparency and revolutionise the way we store and manage data. Get a free initial review lasting up to 1 hour, plus 50 off any follow-up advice. MyWalletHero has sourced you a 50 discount off the cost of advice when you find an independent or whole-of-market financial adviser through Unbiased.co.uk*. All advisers are FCA-regulated, qualified and give fully unbiased advice. To find yourself an adviser fast and for free  use the Unbiased matching tool. Find an adviser now! *This is an offer from one of our affiliate partners. For more information on why and how we work with partners, click here.