Page 33 - Bullion World Volume 3 Issue 11 November 2023

Bullion World | Volume 3 | Issue 11 | November 2023

Cryptocurrencies vs. Bullion:

A Debate on Safe Havens

Mr Prathik Tambre, Bullion World

Investors constantly seek safe havens Portability: Cryptocurrencies are
to protect their wealth in an era of incredibly portable due to their digital
financial volatility and economic nature. They can be stored in digital
uncertainty. Two asset classes that wallets, software applications that
have garnered significant attention can run on various devices such
are cryptocurrencies and precious as computers, smartphones, and
metals like gold and silver. The even specialised hardware wallets.
debate over the superior haven - This means that users can carry
cryptocurrencies or bullion - has their entire cryptocurrency holdings
become a topic of great interest and in their pockets, making it easy to
contention. transfer or access their funds from
virtually anywhere in the world.
The Rise of Cryptocurrencies Cryptocurrencies are also highly
With Bitcoin as the pioneer, divisible, allowing for small or large
cryptocurrencies burst onto the transactions with equal ease, further Mr Prathik Tambre
financial scene in the early 2010s. enhancing their portability.
They offered a novel concept: a techniques used in their creation
decentralised digital currency that The 24/7 availability of and the decentralised nature of
operated independently of traditional cryptocurrency markets and the the blockchain. Transactions are
financial system. Proponents of ease of transferring funds globally secured through public and private
cryptocurrencies argue that they contribute to their convenience and keys, making it extremely difficult
provide several advantages as safe accessibility, as they are not limited for unauthorised parties to access
havens: by traditional banking hours or cross- or alter the funds. Additionally,
border restrictions. the decentralised structure of the
1. Accessibility and Portability: blockchain means that there is no
Cryptocurrencies have gained 2. Transparency and Security: central point of failure, reducing the
popularity in part due to their high risk of hacking or data breaches.
level of accessibility and portability. Transparency: Every cryptocurrency While no system is entirely immune
Here's a more detailed explanation of transaction is recorded on a public to attacks, block chain’s security
these aspects: ledger, commonly known as the features make it a robust and resilient
Accessibility: Cryptocurrencies blockchain. This ledger is distributed technology.
are accessible to many individuals, across a network of nodes, making
regardless of location or financial altering or manipulating transaction These aspects of transparency and
background. Unlike traditional history nearly impossible. This security make cryptocurrencies
financial systems, which may transparency means that anyone appealing for a wide range of
require individuals to have a bank can independently verify the validity applications beyond just digital
account or meet specific criteria, of transactions, enhancing trust in currencies, including smart contracts,
cryptocurrencies can be purchased the system. This can be particularly identity verification, and asset
and used by anyone with an internet useful in situations where trust is tracking.
connection. This democratises essential, such as in supply chain
financial access and empowers management, voting systems, or real- 3. Hedge against Fiat Currency
people who are unbanked or time auditing of financial transactions. Devaluation: Cryptocurrencies are
underbanked to participate in the often considered a hedge against
global economy. Security: The security of the devaluation of fiat currencies,
cryptocurrencies is primarily particularly during economic
attributed to the cryptographic

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