In today’s world, cryptocurrencies are being used as financial tools that can be used for trading and are accessible to many investors. Cryptocurrencies like Bitcoin can enable social and economic growth in several developing countries, by offering access to services related to finances and capital. The highly utilitarian nature of Bitcoin has now started to interfere in the working process of conventional financial organizations.
- BITCOIN’S IMPACT ON THE GLOBAL ECONOMY: As more people are now being able to trade Bitcoin, the popularity of cryptocurrency is also increasing, its impact on the global economy is coming to light.
- The physical form of Bitcoin will never change and thus it acts as a good store of value. Bitcoin is also used as a medium of exchange among traders, it is like an asset and a good investment opportunity.
- Security – Bitcoin is not based on a central authority; its decentralized property decreases the possibility of scams and frauds. The transaction procedure does not involve a third party hence a bitcoin holder has full authority to manage his/her coins.
- Portable nature – as a digital currency, Bitcoin can be transferred digitally from one virtual wallet to another. The transactions that are made here are irreversible thus, a person cannot ask for his/her money back after receiving or trading bitcoins.
- Bitcoin is powered by the complex Blockchain system and the transactions made are all monitored through thousands of computerized nodes fixed around the globe. This decreases the chance of theft and keeps the money secured.
Several traders are now investing in Bitcoin due to all of its features that makes it a good store of value and gives it a strong security system.
CRYPTOCURRENCIES LIKE BITCOIN CAN SUPPORT GLOBAL ECONOMY:
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- A significant rise in economic activities – there is an entire business built on cryptocurrency and it’s held by institutions that supervise and monitor all the transactions taking place around the world. Bitcoin, being one of the most popular cryptocurrencies has helped companies to develop and has led investors towards prosperity overnight. The economy is shifting at a slower pace and Bitcoin has great potential in improving the growth.
- Good opportunities for countries with poor banking infrastructure – more than one-third of the total population of the world do not have proper banking services. They are deprived of all crisis management services, loans, bank accounts and so on. These people are financially unstable and are easy targets of dangerous lending practices. The interest in such practices is unfair and thus further leads to a more unstable economy. In such cases, Bitcoin comes into the light with its high-security system, and being decentralized, transactions can be done free of cost across the globe. The use of cryptocurrencies like Bitcoin will facilitate a financial revolution that will bring together everybody financially and leave them empowered.
- Low transaction cost – since cryptocurrencies do not require any central authority to operate and that they are powered by Blockchain technology, the cost of transaction is minimum. There is no requirement of any employee wages, rent, or utility bills so, this naturally leads to the benefit of low-cost transactions. This further encourages more people to trust and invest in Bitcoins as well as other cryptocurrencies which allows the global economy to be more closely connected.
- Transparency of transactions – all Blockchain-based transactions are digitalized and automated. They are all tracked in distributed records. This means that the chance of manipulation and ill practices are reduced and underdeveloped nations have a greater chance of getting access to the financial transaction system and develop their societal and economic prospects.
BITCOIN IS HELPING ENTREPRENEURS GLOBALLY:
Bitcoin and its Blockchain technology have helped entrepreneurs to prosper in the sense that they now receive payments in more currencies. BitPesa is a company that supports and helps all African business owners to make financial transactions with companies of Asia, America, and Europe. The goal is to help small businesses all around the globe and get sufficient financial coverage and a liberated financial connection with the world.
CONCLUSION:
With the pace the world is progressing, Bitcoin will soon be a part of our lives enhancing the economic growth and the growth of our society. When it comes to the world market and business, Bitcoin shows enormous possibilities and routes to prosper.
