Discussing the Usage of Cryptocurrency

Cryptocurrency
Student's Name
Institutional Affiliation
Course Number and Name
Instructor's Name
Assignment Due Date
Cryptocurrency
Cashless transactions have become a new way of financial transactions among businesses. These developments have been evident in the emergence of blockchain and cryptocurrencies, which have enabled individuals to break away from over-reliance on liquid cash. Cryptocurrency, also known as crypto, is a medium of exchange in which one's coin ownership records are stored in a computerized database for transactional purposes. The coins exist as intangible money, whereby most of them have not entered the physical world in terms of credit cards or other forms but exist in tokens.
The potentiality of a genuinely democratic and shared economy has been an important modern business trend consisting of an economic environment with momentary access to idle capacity. Blockchain technology enables direct peer interactions that eradicate third parties' mediators and prevents high transaction costs incurred in the sharing economy, which traditionally involved micropayments (Tatay & Szemeredi, 2021). Moreover, since the currency is created through transactions and users do not need bank accounts or exchange platforms to buy the currency, the technology brings financial prosperity otherwise lost through intermediary transactions.
The traditional financial system is flawed. The blockchain initiative has been the emerging business trend in the shared economy due to its tendency to promote more accessible access to financial services. Cryptocurrency use is more centralized and promotes trade and business transactions globally through free financial connection, which assists businesses in attaining financial coverage. Ultimately the high volatility rate of cryptocurrencies will pave the way to better financial transactions across borders and assist small and medium enterprises facing financial crisis cases.
Blockchain development in the financial sector is mainly attributed to the minimal transaction fees and ease of financial access across various enterprises and companies. Furthermore, although the transactions are tracked, they remain private to individual user accounts, and cryptography encryption ensures data safety (Arora...