Bitcoin’s Impact on Modern Finance
How Bitcoin and Other Cryptocurrencies are Impacting Global Finance
Since the coming of digital currencies, a lot has been said about the future of finance except that no one knows what will happen in the future. Some people see it as the end of real money while others do not seem to see the success of digital currencies.
When people hear about cryptocurrency, they tend to think of Bitcoin, being the first and largest digital currency to be invented. However, within the last decade, other cryptocurrencies have been invented such as Dogecoin and Litecoin among others. They all work in a similar way and are operated under blockchain, which is a publicly shared record of transactions whereby users can create and track any new activity involving their digital wallet.
Some facts you need to know about Bitcoin include that they do not have a concrete physical or digital existence. For you to own some Bitcoin, you can use two methods, and the first one includes buying them using conventional money on a Bitcoin exchange platform. The other option is by becoming a Bitcoin miner, and this requires you to invest heavily. The main aspect of owning a Bitcoin is the existence of a collective agreement with every other computer involved in the Bitcoin network because this constitutes the legitimacy of existence and ownership. The only challenge that comes with the invention of cryptocurrencies is the ability to convince other people to use them because any currency used by only one individual does constitute a reliable currency.
How Can You Possibly Use Cryptocurrencies?
You can use cryptocurrencies in many ways as long as you have a computer that is rebuilt on a platform based on cryptocurrency. Building such a platform will require you to bring numerous computers across the world into one decentralized platform that controls data processing and storage effectively. Users are already using cryptocurrencies to pay for certain online transactions if the seller of the service or product allows so. For instance, companies such as Uber are already accepting Bitcoin payments as long as the payment comes from a third party vendor of Bitcoin such as CoinBase.
What Are the Benefits of Using Bitcoin
• Numerous benefits come with the use of Bitcoin, and these include convenience. According to Nando Caporicci, if you are using Bitcoin to transact, you can be assured that it will be completed instantaneously regardless of where you are in the world. Being a global network, completing a transaction using Bitcoin is very fast, claims Nando Caporicci.
• Using Bitcoin also secures your wallet because you are the only person in control of your transactions. The security is guaranteed since you are not required to provide any personal information and the cryptography applied is strong enough to prevent hackers from stealing from you.
• Bitcoin are associated with a high level of transparency because every transaction carried out is available on the blockchain for you to clarify any information.
• Once a transaction is completed, it is not possible to reverse it. Nando Caporicci says that this is both a bad thing and good thing at the same time. The impact will always depend on who is receiving the payment and the one sending. However, according to Nando Caporicci, if you as a sender can be vigilant enough, no one will have to lose their money.
• One amazing benefit of using currencies is that a very low fee is involved in every transaction compared to other methods like bank transfers. The reason for the low fee is the fact that no middlemen are involved in controlling your finances, and this means that you can also access and use your Bitcoin as you wish. Bitcoin gives you a chance to have full control of your finances, which means you do not require any permission from other people or institutions and no debt is involved.
Do Cryptocurrencies Hold the Future of Finance?
The blockchain is the medium allowing cryptocurrencies to operate and it is possible that it might revolutionize the financial system in the future whereby people will be using digital currencies instead of real money. If only people can realize the reliability of cryptocurrencies and widely accept them, very few banks would remain standing and strong. The main issue about the success and future of using Bitcoin and other digital currencies is acceptability. The government also has strong control over cryptocurrencies and based on the regulations put in place to regulate their operations; they can either succeed or stagnate.
Some investors say that it is possible for cryptocurrencies to grow and transform as mobile phones did. Others believe that while cryptocurrency frenzy has been growing with time, it is possible that the growth will drop in a few years to come to almost zero if not completely. Based on the different arguments that surround the existence and survival of Bitcoin, no one seems to know if Bitcoin and other upcoming digital currencies could be holding the future of finance. According to Nando Caporicci it is possible that some digital currencies will survive off the success of blockchain technology and grow depending on the player regulating cryptocurrencies.
