When Bitcoins first came into the scene, the price of one Bitcoin was equal to $0.0008, and now as I am writing this blog, the price of one Bitcoin is a whopping $32,043.70.
Since you have clicked on the link to this article, there is a possibility that you are a Bitcoin trader, or you are simply someone who just likes to keep a keen eye on the crypto industry.
The pros and cons of using Bitcoins have been debated ever since it was first introduced. In contrast, some countries have accepted it with open arms, whereas other nations have been quite skeptical about it.
For instance, countries in the western hemisphere such as The US, Germany, and Russia have legalized Bitcoins. In the US. Bitcoin is considered as a property, and the IRS has officially declared that a person holding Bitcoin has to pay property tax; Russia is on the verge of launching its own cryptocurrencies called ‘crypto ruble.’
Germany went a step further and legalized Bitcoins as a legitimate, digital mode of payment. To get the taste of trading, visit the bit-trader.io to get started.
Drawbacks of Bitcoins
But the thing that worries me the most about Bitcoin as a financial investor is that it is very volatile. The value of a Bitcoin keeps changing every second, let alone every hour, and furthermore, since it’s decentralized, there is no legal body backing it.
As there is no regulatory body backing it, a lot of illegal activities like terrorism, sales of illegal weapons, child pornography, and bank fraud are made by using Bitcoins.
5 Ways Bitcoin Can Change Global Financial Systems For The Better
Cryptocurrencies and Bitcoins, in particular, have the power to disrupt a lot of major industries. These are the five ways how Bitcoin can change global financial systems for the better.
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Very Low to No Processing Fees
Does the processing fees charged by the traditional banks bother you? If it does, Bitcoins can change it. Bitcoin works on a decentralized network, which means there are no intermediaries in between. As it is a completely decentralized digital transaction, there is no need for employees’ salaries, Government taxes, and other utility bills.
Furthermore, the transactions happen much faster when compared to the conventional banking system. Cross border transactions in banks may take up to a week for the money to be transferred and add to that the huge processing fee you pay, which takes up a huge chunk of the total capital.
When it comes to Bitcoins, all you need is a Bitcoin wallet and an account, and of course, Bitcoins. Transaction time takes less than 10 minutes, and you do not even have to pay any sort of processing fee.
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Growth in Economic Activities
Major business organizations like Samsung and Google have started showing faith in cryptocurrencies, especially ether. If major industries use cryptocurrencies, only good things can come out of it.
Bitcoins’ rising popularity has led famous entrepreneurs like Bill Gates and Elon Musk to talk about it openly on social media platforms. Many companies have already started accepting Bitcoins like PayPal and Venmo.
They have understood the potential that bitcoins hold; soon, other major industries will join the trend.
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Relief for Hyperinflated Countries
Even in this day and age, many countries are very poorly banked. Many African nations do not have a proper banking system, as a result of which there is soaring inflation in these countries. The fiat currencies of such countries are nothing but just paper. Hyperinflation is a major concern for poorly banked countries. Bitcoins can solve it as there is no scope for inflation in Bitcoins. There is only going to be a limited number of Bitcoins mined.
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Transparency at its best
As you already know, Bitcoin works on blockchain technology, which is the most sought after technology in the whole world. The thing with Blockchain technology is that it works on the public ledger concept, which makes it very transparent for everybody on the network.
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Lucrative for New Entrepreneur
As more people are aspiring to be entrepreneurs, they can design the revenue model of their business to promote Bitcoins.
Conclusion
There you go. Other than a few drawbacks, Bitcoin has the potential to boost the economy and change the global financial system for the better.
It can develop countries by allowing financial smoothness.
More Bitcoin Articles:
Bitcoin’s Lightning Network Guide
Top Fintech Innovations You Should Watch Out For In 2021
Is Bitcoin Really Used To Fuel Illegal Trade: Know The Facts
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