Bitcoin has been everywhere that some people have an idea of what it is. This digital currency has become a revolutionary technology in transferring funds nearly instantly and without a middleman. It’s already making an impact on the global economy. From e-commerce to programmable ways, Saleh Stevens explains five ways in which Bitcoin could change the world as we know it.
1 – Cheaper Bank Transfers
Banks and credit unions move slower than the Bitcoin technology. Long-distance and international bank transfers can take several weeks, depending on the bank and the location from both ends. Even problems can occur when it comes to cross-border sharing. When using Bitcoin technology, bank transfers are faster and easier than ever.
Most bank transfers take place within minutes. This technology has changed the way the money is transferred among countries and across oceans. This is the most efficient option for investors and trading pastors. This often used by foreign exchange traders who have a wide variety of bank accounts and need to make transactions immediately.
2 – Reduced Reliance on Fiat Money
Currency such as coins, credit cards, debit cards, and paper forms have become the most common ways to exchange money. With digital currency on the rise, the global economy will change in new ways. But it’s still unclear on how Bitcoin will replace the older forms of money. Consumers have used credit cards for paying for products and services online. Saleh Stevens says that people who already own a Bitcoin wallet want to ensure that their digital currency will have the same level of security as their credit and debit cards.
3 – A Boost for Global Remittances
Migrants from developing countries are already seeing the benefits of Bitcoin technology. Unfortunately, fees for international transfers have increased between six and 10% for a $200 transfer. With digital currency, an individual can remain private while sending money to families on their smartphone or tablet. They only incur the fees that have to do with the currency exchanges.
Most virtual currency transfer companies use capital to make up for the delays in international transactions. But these capital requirements are lower than for businesses who rely on digital currencies. This doesn’t include capital costs and the cost of transferring that money. Decreasing these costs can make it possible for smaller companies to enter this industry and for existing firms to help developing countries and smaller areas.
4 – Stricter Regulation of Cryptocurrencies
Bitcoin and other digital currencies have increased in popularity over the years. Banks are now finding ways to embrace this new technology. This can lead to increased regulation on cryptocurrencies including the financial problems that they could cause. This includes establishing regulations on the currency supply and implementing a tax system to profit off of Bitcoin’s increased growth. To effectively implement these policies, banks and financial institutions need to keep up with this industry.
5 – More Money for the Poor
The increased popularity in developing countries has taken an interest in developing countries. Sixty percent of e-commerce shopping has taken place on mobile phones. Those with a mobile device can save money and send it to another individual. One downside is the large fees, some as much as 20%.
Digital currencies are a safe and convenient form of payment in developing countries where most people don’t have a bank account. Bitcoin and other digital currencies are a better alternative to the other options that come with high inflation costs. Since Bitcoin has become the most stable currency, it could trickle out to other international financial markets. This is a great way to prevent inflation from happening