Bitcoin and its underlying technology, Blockchain, continue to draw mixed reactions from the public. Several people describe them as the future of money and commerce, because they are increasingly influencing the way people transact and do business. Bitcoin and Blockchain technology has enabled enormous innovations, driving economic development and making life easier for many populations around the world.
On the other hand, others have also criticized Bitcoin and Blockchain as the most important economic disruptors. They argue that cryptocurrencies are highly volatile assets with no intrinsic value, exposing investors to huge unnecessary risks. A handful of critics are also concerned that virtual currencies like Bitcoin encourage fraud, money laundering, terrorist financing, and other cybercrime.
So how can Bitcoin and its underlying technology change the world? The following article explores it.
Decentralized financial systems
Satoshi Nakamoto created Bitcoin to operate as a decentralized currency without a central authority. Therefore, Bitcoin transactions are not subject to regulatory or government influences, allowing businesses and individuals to seamlessly send and receive money. Unlike fiat currencies, Bitcoin users do not need banks or money processors to complete transactions.
The decentralized system of Bitcoin guarantees greater convenience in international remittances, since the transactions do not involve third parties. The absence of intermediaries in Bitcoin payments also contributes to relatively lower transaction costs. That promotes the free flow of capital across international borders, facilitating economic growth and development.
Unlike fiat currencies that are subject to numerous government and institutional restrictions, Bitcoin is a universal payment method and a store of value accepted throughout the world. It eliminates government control over financial transactions, offering the public the desired autonomy in managing their wealth. Blockchain technology validates all Bitcoin transactions in a digital public ledger, ensuring greater transparency and security in payments.
Financial inclusion
The World Bank notes that around 2 billion people around the world are unbanked. That makes it difficult for those people to get financial assistance and do business with the rest of the world. Even in regions with access to banks, services are often expensive and subject to various regulations that make life even more difficult for disadvantaged populations.
Bitcoin and its underlying technology allow people to bypass banks and money processors. Users only require a smartphone and internet access to transact around the world. They can transact through a personal Bitcoin wallet or a cryptocurrency exchange platform. Transactions through an exchange platform have minimal fees, but the fees are usually much lower than credit cards or bank transfers.
Robust Economic Opportunities
Bitcoin has inspired multiple economic opportunities for companies and individuals around the world. Today, it is among the most lucrative asset classes, attracting more and more institutional investors, traders, and individuals from around the world. The value and demand for Bitcoin is increasing day by day. This virtual currency has ever-increasing trading volumes on platforms such as click here.
The most prominent avenues for investing in Bitcoin include Bitcoin trading, mining, and HODLing. Merchants can also invest in Bitcoin by accepting it as payment in their stores. Large-scale investors could also invest in cryptocurrency exchange businesses.
Greater innovation
Bitcoin and its underlying technology, Blockchain, have also inspired huge innovations across multiple industries, including finance, e-commerce, travel, manufacturing, real estate, health, entertainment, and retail. Most of the new cryptocurrencies run on the core technology of Bitcoin. Various products and services, including mobile applications, are based on Bitcoin and the Blockchain. Blockchain is an open source platform that supports various technology-based applications including smart contracts, supply chain management, and inventory management.
Bitcoin and Blockchain technology are still relatively new, but have already shown immense potential to transform and modernize various aspects of the global economy. However, cryptocurrencies also have some setbacks, such as high volatility, that investors should consider.
