Worldwide acceptance of bitcoin is still questionable as few regions have illegalized any bitcoin-related activity to maintain financial stability. Check Bitcode Prime will provide you with a clear understanding of bitcoin trading operations. But bitcoin acceptance has aggressively infiltrated multiple international financial segments incurring traditional banks, insurance companies, and issues like inflation and remittance.
The decentralized nature of bitcoins and their anonymity avoid the need for a central controller, making them a haven from inflation. As a result, it is increasing the demand for other currencies and creating deflationary pressure that could potentially force a change in the monetary system, creating worldwide acceptance of bitcoin.
The US dollar has a history of inflation, and people have not been able to predict when the dollar will devalue, but they can't get rid of their gold. Gold will always be helpful in the future, and because of this, many countries allow their citizens to purchase gold with foreign currencies. With bitcoin, you can buy this virtual coin with any other currency without a third party controlling the price.
It significantly minimizes the risk of inflation. Bitcoin is also more difficult to track than a traditional currency, and funds are transferred directly from person to person avoiding taxes or other fees generally associated with wire transfers or bank fees. Let's discuss how bitcoin can become a revolution in the monetary system.
Bitcoin vs the traditional monetary system:
-Bitcoin can be acquired anonymously, and users are not obligated to provide personal information to any bitcoin related business
-Already being used in developing countries, there is a vast potential in bitcoin as a vehicle for remittances.
-Bitcoin has higher potential and more advantages than other currencies as it is immune to inflation.
The payment processors that facilitate transactions between buyers and sellers of goods or services are based on fiat currency, so the transaction fees are paid in USD or any other government-issued currency. With bitcoin, the transaction fees are 'mined' by those who run the software on their computers, which is becoming a new form of wealth distribution. It is an incentive for miners to keep the network secure.
The current monetary system gives citizens two choices in moving funds from one country to another: a wire transfer or a bank transfer. It is expensive and takes time to complete, but at least there are safeguards in place to protect your money from being stolen. With bitcoin, there is no mediator, and it promotes the free flow of funds and capital globally, facilitating financial inclusion.
Bitcoin eliminates corruption in the monetary system. One of the main reasons why bitcoin is seeing more acceptance is that it cannot be counterfeited or debased, which makes it hard to steal funds. In addition, rather than having records stored with a third party, your funds are stored safely on your computer or smartphone. It makes the transaction transparent yet non- traceable and ensures complete privacy for all users involved in any transaction.
Innovation and employment with bitcoin:
Various innovative companies are using bitcoin as a platform to develop new products and services. As a result, it generates jobs and a lot of technology innovation, sparking R&D investment. The creation of firms that provide Bitcoin-related services has increased the number of jobs by 27% globally, and 139,000 new businesses have been established solely related to bitcoin since 2010. Additionally, there were a reported 173,000 more jobs in the US alone, resulting in more employment for the economy.
Bitcoin lowers transaction costs:
The number one reason banks charge money transferring fees is that it takes time to complete the transaction, which generates revenue from interest, dividends or other types of fees. But bitcoin is devoid of any third party and excludes every possible charge by the traditional banking system.
The bitcoin network is already doing most of the processing required by users, which results in no fees being charged by merchants and buyers. It is essential for microtransactions which are challenging to track.
Bitcoin can spur the development of new products:
As suggested earlier, bitcoin is the perfect platform for remittances. Many money transfer companies have been populating and creating new markets by providing services related to their existing business lines or creating entirely new "bitcoin only" services. As a result, bitcoin has brought more jobs and business opportunities worldwide. It has incentivized competition among service providers and created better options for all users to transfer funds globally without any costs or other payment restrictions.
There are thousands of bitcoin businesses located in every country that are facilitating transactions via the internet. For example, you can use bitcoin to pay for hotel rooms, purchase plane tickets or even buy gold from a bitcoin store. Another example is eBay which has recently announced that they will begin accepting bitcoins as payments starting in San Francisco, with a few other cities expected to follow shortly.
WRITTEN BYSiarra K