Can the Bitcoin be dubbed as the “future of money”?
This is one question that continues to prey on our minds. The truth is besides being a digital currency with an anonymous nature. The Bitcoin actually has the potential to revolutionize our banking methods. The main idea behind a currency is to use it for transaction-based trades or for purchasing and selling goods and services. But Bitcoin prices have been speculative in nature and it is yet to be accepted by merchants worldwide.
There have also been instances of Bitcoins being used to buy illegal substances. So, cryptocurrencies may have a utilitarian quality but they are also disruptive in nature, something that is steadily making its way into the traditional monetary system.
So, the Bitcoin is likely to make a difference to global trade.
How Can The Bitcoin Impact Global Trade?
- The way in which the cryptocurrency world is expanding suggests that crypto coins like the Bitcoin will make their presence felt on world economies. Many early adopters of the Bitcoin have become millionaires overnight. The Bitcoin has allowed both businesses and individuals to flourish and reap huge profits. So, economies are gradually shifting to facilitate Bitcoin trading.
- The fact is more than one-third of the global population lacks an easy access to banking services. This explains why they face many challenges in overcoming financial troubles; for instance, they cannot reach out to banks for loans. As a result, these disadvantaged people tend to take the help of unlawful and dangerous practices. Interest rates in such methods are even higher and this leads to more instability. Cryptocurrencies like the Bitcoin appear to be a preferred option for them for their ease-of-use and volatility. You can use apps like bitcoin up on your smartphones for trading Bitcoins; this advantage together with the fact that the Bitcoin is not centrally regulated makes it possible to engage in smooth trades across borders. So, Bitcoin and its blockchain technology will bring about a financial revolution making sure everyone around the world is financially empowered and connected to one another.
- Since crypto coins can operate without a third-party institution like a bank, costs of transactions are far lower. You do not have to pay for expenses like employee salaries or utility bills; all this makes it possible to keep transaction fees at a minimum. This advantage, in turn, pushes more and more investors to trust in these new financial tools.
- Bitcoin makes transactions more transparent and that is a welcome change for global trades. Since all crypto transactions are digitized that can be tracked via a public ledger or the blockchain. This blockchain cannot be tampered with or damaged by individuals or companies. So, the risks of frauds and thefts are far lower. Underdeveloped countries can also be a part of financial transfers seamlessly and help their own economies to grow.
- Bitcoin offers more power to entrepreneurs; this is perhaps the best time to launch your own venture using blockchain technology. BitPesa, for example, has been assisting entrepreneurs in Africa for doing business with Asian, European, and US companies. In short, small and medium-sized businesses all across the globe are getting better financial coverage.
With the success of Bitcoins, many other digital currencies like Ethereum have come about.
This platform facilitates exchange of multiple crypto coins.
Ethereum also creates and hosts apps for file storage and users can pay for their usage in crypto coins.