When the Bitcoin made its appearance a decade ago, people initially thought it would only serve as recreation for some and the currency would fade away in no time. However, this was not to happen, and the Bitcoin today is steadily moving towards mainstream adoption. You cannot overlook its impact on the global economy as a whole.
Ways in which Bitcoin helped the economy:
- Bitcoin led to a key shift in the world economy because investors haves started adding Bitcoins and other altcoins into their financial portfolios. Critics however warn people of an impending collapse for the Bitcoin which in turn can trigger a worldwide economy crisis. However, the truth is, investors are looking at Bitcoins as hedge against possible inflation.
- When you dabble in cryptocurrencies there is no link to the US dollar; involved parties can use another medium to take part in the world economy bypassing US economic policies.
- With Bitcoins, there is no need for any third party or middleman to enable transactions. Transactions are verified and approved by miners in a decentralized fashion. This development has become a cause of concern for banks because their services are gradually becoming redundant. Crypto transactions are also much faster than traditional money transfers through banks, where the waiting period is much longer.
- Bitcoins are helping the global economy by encouraging more international or cross-border transactions. People residing in nations where the economy is in shambles and those lacking access to bank accounts can now hope to transfer money using Bitcoins. This provides them with an opportunity to associate themselves with online economy; they only need to download a digital wallet to get started, no matter where they are situated. Transactions are not only speedier, they are also confidential and secure. Transaction fees are much lower than one would have to pay for conventional money transfers.
- When people start using Bitcoins, it lessens their dependence on fiat currencies. Bitcoins are free from politics and economical issues that tend to affect traditional currencies. This is why it has the power to emerge as an alternative to fiat money. Customers are also more confident about digital money transfers primarily because the speed is faster and it is convenient for making purchases.
- With Bitcoins becoming more and more popular by the day, both regional and national authorities are struggling to introduce regulations. This will lead to legislations for addressing crypto coins in particular. But different countries hold different approaches towards crypto coins, with some like Pakistan, Nepal, Morocco, Bolivia, Algeria, etc even banning Bitcoins. At the same time, countries like the US, Australia, Canada, etc are accepting Bitcoins as payments. Even Scandinavian countries like Norway have their own set of guidelines to trade bitcoin. If you are a Norwegian and looking to buy bitcoin have a look at this kjøpe Bitcoin aksjerbloggen that talks about bitcoin trading.
- Bitcoins help to create a worldwide decentralized network that successfully does away with the need to bring in any centralized institution to issue this currency or manage it. So, it has made the way for a new and unique kind of market; a place of opportunities where no person or authority can control it.
- Bitcoins allow for access to a reliable credit framework because it is an unregulated decentralized digital currency based completely on data. When prices remain stable for quite a long time, it can help people located in isolated areas to stay connected with global merchants.
- Bitcoins have led to crowdfunding that allows startups and businesses to raise money through cryptocurrencies. In ICO crowdfunding, the investors purchase crypto coins which stand for shares in that business similar to the stock markets. So, these shares can increase in value when a company performs well. This new type of crowdfunding is benefitting entrepreneurs, inventors, and creators, and helping in the growth of a sustainable economy.