How Bitcoin Can Change the World?
Beyond its fluctuating nature, Bitcoin has the potential to completely revalorize the way we utilize and manage money. Here are listed some of the potentials of Bitcoin that can create a deep impact on the present financial structure.
One can earn money by trading, working in the office, and by exchanging other currencies. But in Bitcoin, one can earn bitcoins by mining. Mining works in a virtual world just like you heard about “Pokemon Go.” With the growing popularity of Bitcoin, it can be possible that you can buy and sell goods with bitcoins and even exchange it as the other form of currencies like dollars, Euros etc.
How Bitcoin works?
For availing bitcoins you need to create Bitcoin wallet with a major Bitcoin payment service provider. Bitpay, CoinBase are some of the biggest names that are allowing users to own bitcoins. Besides, there are Cointal which is offering them without any fees. Although you have to pay a low fee to these third party service providers, you can stay relaxed as they automatically convert bitcoins into your local currency as soon as you receive the Bitcoin payments. It also provides Bitcoin storage and the wallet owners can use bitcoins for any transactions where the counterparty accepts bitcoins. The wallets also facilitate recording of each transaction and authenticate it as well.
The Speculative Nature
The valuation of bitcoins is a speculative game. The entire primary currency can be used for a transaction for buying and selling goods. But Bitcoin is not yet accepted across the world. There are speculations about the use of Bitcoins for illegal purchases like drugs and gambling. And anyone buying legal goods or services through bitcoins would make a comparison with the dollars and can be the cheaper option. In the last quarter of 2013, Bitcoin was trading above $1000. Since then it is steady and declines. From $1000 in 2013 to $330 in 2014 and yet another low of $170 in 2015, it has lost its importance.
Although the value of Bitcoin is decreasing in 2015, it was solidifying the exponential growth of the present-day economy. The recent value of Bitcoin may be perceived as similar to bubble burst, but it has prepared the grounds for the upcoming economy.
In 2017, Bitcoin saw some important development due to its popularity and advancement of technology which display the long-term positive potential and adoptions of cryptocurrencies.
Tech giants investing in Bitcoin
Since 2017, there is a consistency growth of Bitcoin and you can see there is the largest investment in the technology. It has raised the foundation of the better economy and also created better opportunities for various industrial sectors like cyber security, financial sector, mobile app development and many others. Large corporations are also seeing great possibilities by investing in Bitcoin.
Tech giants like Microsoft, Dell, Dish, Expedia, Overstock are now allowing their customers to pay with their bitcoins. Besides, the numbers of merchants accepting bitcoins are also increasing from 36,000 to 82,000. Right now you can buy everything you want to with your bitcoins right from sports cars to grocery.
82,000. And the number of Bitcoin ATMs grew to 4 to 340 across the world. On the other note, the venture capital investment in Bitcoin also raised from $98 million to $335 billion. These venture capitals are contributing a large amount of capital into the currency and are expected to get great returns for their long-term projects.
All these positive aspects indicate that value of Bitcoin is at rock bottom, but the recent development and acceptance has created strong potentials for a future currency. Bitcoin is a rare combination of technology and finance with global reach. It has the impressive framework.
Although its real potential is not at its high exchange rate, it is providing an additional virtual currency that is free from governmental interference. The potential of Bitcoin lies in its technology which is secure, effective and fast. It has an inbuilt authentication of transaction and record keeping which cannot be changed. Thus, Bitcoin is changing the financial ecosystem of the entire world.
Future of Bitcoin Adoption
A bank takes two to three days to transfer money to another bank account. To purchase a house, you have to pay significant fees for registration and stamp duty charges for ownership in multiple books and records. But through digitalization, the indelible record of Bitcoin transaction has the potential to prevent such third parties and offer you the product or services at their costs.
According to a survey, the money transfer fees would have fallen by 90% if people started using Bitcoin. The credit card companies might also bear the loss as there are chances that they might lose their 2 to 3 percent of charges to the retail merchants. The charge-free bitcoins would be the game changer in the financial world. Those small businesses which are running on thin margins can get increased sales profit by avoiding these unnecessary bank and credit card charges.
A World Bank report predicts that people had transacted more than $700 as international remittances in the year of 2016. And banks took the significant cut from 4 to 10 percent on the transferred amount. This charge may be direct. But Bitcoin allows free transaction beyond the geographical locations. It means that the users can save its 4 to 10 percent.
The potential of Bitcoin is not limited to transactional cost savings. A Bloomberg report from 2012 reported that more than half of the world’s population does not have a bank account. And the mobile penetration is above 75%. If mobile apps will facilitate Bitcoin payments then this could enable money transaction over remote distance with no extra costs.
In short, Bitcoin and its technology have lots of potentials to change the world in near future. Applications based on blockchain technology may raise social, technical, economic and legal problems. But the alternative of future currency, Bitcoin will have to pass the test of trust, time and technology to get accepted by the rest of the world. If the Bitcoin failed to make it, there will be an advancement in the cryptocurrency industry which might force government and people to accept and regular it in recent years.