More Than Just an Investment, It’s a Global Solution!
Did you know that Bitcoin buyers are no longer individuals but countries? Take El Salvador, for example. This small country in Central America has implemented a policy of buying one Bitcoin per day since November 2022.
Considering that the price of Bitcoin has reached one billion rupiah per coin, it is not surprising that El Salvador has the potential to become one of the wealthiest countries in the world in the next 30 or 40 years. El Salvador also became the first country to adopt Bitcoin as legal tender alongside the United States (US) dollar.
So, you should reconsider if you are still ignoring Bitcoin and other cryptos. On the other hand, thanks to the continued development of blockchain technology, crypto no longer functions merely as investment assets. With crypto, you can enjoy advantages such as sending wealth abroad.
Let’s discuss the other benefits of crypto in more detail!
Why You Shouldn’t Ignore Bitcoin and Other Crypto
Over the past few years, crypto has emerged as a formidable asset class. Bitcoin’s meteoric rise and the subsequent popularity of other digital assets like Ethereum, Ripple, and Litecoin have made headlines worldwide. Investors have flocked to the crypto market, drawn by the significant returns and the allure of participating in a groundbreaking financial paradigm.
But crypto’s true potential extends far beyond its investment value. Cryptos are built on blockchain technology, a decentralised ledger that offers unprecedented security, transparency, and efficiency. This technology lays the groundwork for many innovative applications, transforming industries and addressing real-world challenges in previously unimaginable ways.
Revolutionising Cross-Border Asset Transfer
One of crypto’s most significant and practical applications is remittance and cross-border transactions. Conventional methods of sending wealth across borders are fraught with challenges. They are often slow, expensive, and burdened with a labyrinth of intermediaries that introduce inefficiencies and increase the risk of errors and delays.
By leveraging blockchain technology, crypto offers a faster, cheaper, and more secure alternative to conventional remittance systems. Here’s how:
Speed and Efficiency
Crypto transactions can be completed in minutes, regardless of the geographical distance between the sender and the receiver. Unlike conventional methods, which can take days to process international transfers, crypto transactions are almost instantaneous.
Cost-Effectiveness
Conventional cross-border transactions are notorious for their high fees, which can affect the amount being sent. Crypto significantly reduces these costs by eliminating the need for multiple intermediaries. Transaction fees are minimal, making it a more affordable option for sending wealth globally.
Security and Transparency
Blockchain technology ensures that every transaction is recorded on an immutable and transparent public ledger. Hence, it reduces the risk of fraud and provides a clear, verifiable record of all transactions. The decentralised nature of blockchain also means that there is no single point of failure, making it more secure than centralised systems.
Cryptos, often used for overseas wealth transfers, generally have low transaction fees, fast transfer speeds, and broad support. Some of them are Bitcoin (BTC), Ripple (XRP), Stellar Lumens (XLM), Litecoin (LTC), USD Coin (USDC), and Tether (USDT).
However, XRP and XLM can be good options if you value speed and low transaction fees. Then, USDC or USDT would be the right choice to avoid price volatility, considering that both are stablecoins whose value is equivalent to US Dollars.
Crypto as a Game Changer
Let’s delve deeper into the power of crypto and its potential to revolutionise cross-border asset transfer.
Mr. Charles is an expatriate who has lived in Indonesia for twelve years. Each month, he regularly sends US$2,000 to his family in France for their monthly needs. He has compared two methods to send the wealth: conventional methods or crypto.
If he uses conventional methods, some transaction fees have to be paid, including:
- SWIFT fee: around US$2 – US$5
- Provision fee: around 0.125% of the total transfer amount
- Full amount sending fee: ranging from US$10 – US$30
So, if we calculate it with the lowest fees, to send US$2,000, he has to pay US$2 + US$2.5 + US$10, and the total will be US$14.5.
Mr. Charles is also looking into crypto as an alternative to sending wealth. To send US$2,000 to his family, he just needs to buy USDT or USDC with a purchase fee starting from 0% and sending fees starting from only US$1.8*.
By using crypto, Mr. Charles could save US$12.7 per transaction. It’s faster and available 24/7, so he doesn’t have to wait for business days and working hours to send wealth in case of emergencies.
Send and Receive Crypto Easily with Luno!
Many people know crypto for investment or trading, but they don’t know about crypto’s actual value, which lies in its ability to solve real-world problems by facilitating faster and cheaper cross-border transactions. Crypto is proving to be much more than an investment. It’s a tool for innovation, efficiency, and global connectivity.
Embrace the future of crypto with Luno, and discover how it can transform your world!
Luno is an app that lets you buy, sell, send, and receive crypto safely, quickly, and efficiently. Luno is trusted by more than 12 million users in over 40 countries and is registered and supervised by BAPPEBTI (Commodity Futures Trading Regulatory Agency) in Indonesia.
Start your crypto journey today by purchasing your first Bitcoin, Ethereum, or USDT! Download Luno now from the App Store or Google Play. Use the INDOEXPAT promo code to get free Bitcoin worth Rp100,000 while registering on Luno.
Luno is registered and supervised by the Commodity Futures Trading Regulatory Agency (Bappebti). Trading and investing in crypto assets is a high-risk activity. Read more in our Terms of Use here: www.luno.com.
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