Bitcoins Economical Globalization: How Online Bitcoin Exchanges Are Transforming Fintech
February 04, 2019
The word “bitcoin” is being thrown around so much that almost everyone has an idea of what it’s all about. Being introduced by the pseudonymous Satoshi Nakamoto; Bitcoin has steadily worked its way for dominating every side of the online community. Starting with buying phone credits to shopping for clothes online, there is no financial transaction that the Cryptocurrency Exchange is not good for. This singly has contributed to the popularity of bitcoin as a monetary system that continues to go unregulated.
Recently, Bitcoin has experienced a flow in value as more and more people are cashing in to mine their own digital currencies. As of November 2017, bitcoin has at the minumum grown to a whopping $11,000 in value spurned on by investments from people who are primarily interested in gaining quick cash.
Regardless of this fell back slightly financial experts are predicting the cryptocurrency exchange to remain tough, and will eventually generate a lasting and significant impact on the global economy.
For B2B managers and execs, bitcoin may looks like an attractive financial item to invest in. Still, it pays to know how it will shape whole economies and markets in coming times.
Minimize dependency on fiat money
Ever since humankind invented currency, money in its metallic and paper forms have become the main medium of exchange. With the digital revolution we are experiencing right now, the economic landscape will transform in unbelievable ways. As yet, consumers have become more reliant on online transactions as a more convenient means to pay for products and services. What’s more, a lot of people that are so far managing their own bitcoin wallets have full confidence that their virtual cash enjoys the same level of security as real money.
Access to a credit system
Being an unregulated currency that is based completely on data, bitcoin enables unbridled access to a secure credit system. Considering that it is stable it will continue to bridge people who are remote with global merchants, that will certainly open up new markets and opportunities that will further influence economic growth
Regulation of cryptocurrencies
Noticing that how bitcoin and digital transactions have become popular in recent years, now central banks have begun flexing their muscles, and this will finally lead to legislation addressing the rise of cryptocurrencies and speculations.
Measures such as regulating the currency supply and implementing a tax system are being reasoned to stymie bitcoin’s growth.
Influence on overseas remittances
Currently, money transfers are facilitated by banks that charge extra in processing and transaction fees, also with that, transaction time is relatively slow and it would take seven days at least before the receiving party can access the funds. Whereas with online bitcoin exchange, on the other side people can get around these caveats and get more from their money than what traditional wire transfers entail. Even more, currency conversions through such transfers are costly, considering Online Bitcoin Exchange conversions are much simpler and do not entail any such costs. From this, we can only expect overseas workers to rely on bitcoin as a more convenient and less costly means to send money to their loved ones.
Environmentalism and the economy
Bitcoin is mined from a complex software and hardware infrastructure system. And just similar any other traditional method of mining, manufacturing bitcoin also impact the environment in not so ingenious ways. The servers used for mining consume a great amount of energy.
Bitcoin is leading in a new paradigm in various aspects of society, and creating a new example for future technological achievements to inevitably be compared to.
Bitcoin is changing everything, and if you aren’t introduce, then you’re already missing something.