Bitcoin has been the stuff of news headlines for months now. Never before has a cryptocurrency gained so much value in just a short period. One Bitcoin was equivalent to $750 at the start of 2017. Sounds a lot? Well, that doesn’t compare to its value late December last year where it rose to a staggering $20,000.
So is Bitcoin really the future of money, or is merely a fad which will fizzle out?
Unfortunately, since then the value has dropped. At the time of writing, one Bitcoin is valued at $7,570. But that doesn’t mean it’s on its way to zero. That’s just the nature of bitcoin — a volatile digital currency that scares and inspires people at the same time.
Bitcoin, just like the credit card in its early days, has been frowned upon by pessimistic investors. But is this justified? Well, not entirely. In fact, there are lots of companies that see this cryptocurrency as the future of money. Feel curious? If so, read on! We’ve compiled some of the best reasons why Bitcoin is indeed the future economy.
One of the best things about Bitcoin and other cryptocurrencies is that it doesn’t have to deal with transaction charges, interest rates, and exchange rates of any country. This makes it usable at the global level without experiencing any regulation or technical problems.
It comes in handy for businesses and personal users because they don’t have to apply for permissions or pay money transfer fees from different countries. Bitcoin runs at the global level, thus making transactions easier.
Statistics state that 2.2 billion people are hooked up to the internet through their computers or mobile devices. But what’s interesting about this is that majority of these people don’t have access to traditional money transfer systems. If they do, it’s undoubtedly a huge hassle, as they need to wait in long lines and need to be physically present in the office or store.
But you don’t have to worry about any of these with Bitcoins because you can access it anywhere and anytime through your internet-connected device. You get to make a transaction with just a few flicks of your hand and without having to connect your credit cards to your bank or any of the usual stuff.
Another great reason why Bitcoin paves the way for a new economic landscape is that it is a decentralized system. It doesn’t need any central authority to manage its transactions and production. It is a peer-to-peer system.
Bitcoin and other cryptocurrencies are all about mass collaboration. This makes it potentially immune to any financial crisis because it isn’t connected to any national economy. So if ever an economic downturn happens in one corner of the globe, Bitcoin should be safe from the effects.
Prevents Identity Theft
The closest thing to cryptocurrencies is credit cards because they also facilitate electronic transactions. But what makes cryptocurrencies (such as Bitcoin) more appealing is that they reduce the likelihood of identity theft.
This happens because unlike credit cards that follow a “pull” basis, Bitcoin and other cryptocurrencies use a “push” mechanism. This means that the user gets to send/push information or payment to the recipient, instead of the shop getting/pulling payment from them. Bitcoin is all about giving the user full control over it.
Bitcoin and other cryptocurrencies are still in their infancy stage despite the technology being almost ten-years-old. It still has a long way to go before the general public accepts it. Even though Bitcoin reached a $230 billion market share, it’s not enough to replace traditional currencies.
The demand is not there yet. But interestingly, the need for it is starting to take shape. Businesses need an easier way to manage faster and more secure transactions. An excellent way to do that? Bitcoin.
Not only does it give you full control over your money, but you can also speed up more secure transactions anytime and anywhere. Lower transaction fees also come as a bonus. Indeed, the time will come when Bitcoin will make it to the mainstream. It’s not a matter of if, but just a matter of when.