Post Menu and Details.
- Who Controls Bitcoin?
- How are people adopting this new age investment option?
- New-Age Investment:
- Bitcoin and blockchain disruption in different industries:
- Investment opportunities created by bitcoin:
- Bitcoin eliminates Remittance:
Reading time: ~4 minutes
The proliferation of Bitcoin as a new digital currency is an undeniable example of a decentralized finance trend. In addition, when the US Treasury Department published guidance in March 2013 on digital currencies, stating that “virtual currency can be defined as a medium of exchange” and that it falls within its regulatory scope, the world saw its future economic ramifications.
Bitcoin is not bound to any one country or bank; it transcends borders, and transactions have no concern for location. People purchase a virtual commodity in the same manner as other commodities on the open market. These transactions do not occur at a single exchange or with one financial institution; they occur virtually peer-to-peer. This method of transacting is seen as having a potentially significant effect on many industries, especially the finance and tech industries. For more information about Bitcoin, you can visit Top Bitcoin Uses in 2022.
Who Controls Bitcoin?
Bitcoin has no formal governing party or centralized authority. It operates with no physical assets and is owned by anyone who purchases it. This virtual currency can be stored digitally in an online wallet or transferred to another individual who has also purchased Bitcoin. Users on physical devices can also store it called hardware wallets.
A prominent example is the travel website Expedia, which started accepting Bitcoin as a form of payment in 2014. Expedia partnered with Coin base to enable this transaction and, within three days, had sold over $15,000 worth of Bitcoin via more than 800 trips. The company also offers promotional discounts on select hotels if paid with Bitcoin.
The goal is to take advantage of merchant benefits such as lower transaction fees and quick transaction times associated with digital currency. Expedia and other companies like Overstock, Shopify, and Newegg can pay their suppliers, employees, and banks with Bitcoin.
If a company accepts Bitcoin as payment for goods or services, it will save money on processing fees since credit cards charge 2% to 3%. In addition, if a company accepts Bitcoin as payment for goods or services, it eliminates the typical 3-day waiting period for clearing payments. It also eliminates customer fraud concerns about stolen credit cards often used in e-commerce transactions.
How are people adopting this new age investment option?
The value of Bitcoin has risen from $900 to $65,000 by October 2021. As bitcoin started to become more popular, many people started buying and holding it with a view that someday, it would surpass its all-time high value and reach $100,000 per coin
Before these coins came into the picture, investing was limited to stocks, bonds, and precious metals. With these coins, there is a vast investment opportunity in the crypto market. It is similar to the stock market, which started a few decades ago. The only difference is that this new market has more opportunity and growth potential because of its limited supply compared to stocks.
Also, investing in stocks for most people doesn’t work out because they lack knowledge of the market or how it works or just general interest in studying news and trends around it. With these coins, all those problems are eliminated. Since these investments are made via the internet, it has been made easier for people to come across bitcoins and decide whether to invest their money or not. These coins offer quick returns, and with the current market trend, this will only increase in the future.
Along with bitcoins, other alt-coins like Ethereum and Ripple are becoming more popular among investors. Also, many people invest in mining cryptocurrencies because mining rewards them with new coins for solving complex mathematical algorithms. These can be traded for cash or stored in virtual wallets that can help multiply wealth over time.
Bitcoin and blockchain disruption in different industries:
The potential for widespread use of bitcoin and blockchain-based technologies prompted Traditional Financial Institutions (TFI) to investigate the feasibility of bringing financial services to the market. However, they observe that the banks will have to introduce new business models as bitcoin is a disruptive force that may destabilize the traditional financial industry.
As introduced by Bitcoin, the alternative banking model is likely to upend traditional banking. However, Bitcoin’s decentralized nature allows any existing bank or pre-existing financial services company to reap benefits if they prepare well and make appropriate business models and procedure changes.
Investment opportunities created by bitcoin:
Bitcoin has been described as a revolutionary investment. The growth potential is enormous, based on its low-cost infrastructure and the potential to mobilize capital currently tied up in foreign currency accounts.
Bitcoin may also be used as an alternative investment vehicle by individual investors with minimum knowledge of financial markets. Most Bitcoin trading occurs on exchanges or through online mining pool systems where users spread and share their mining rewards across participants. As a result, investors need multiple wallet addresses rather than a single overall address, which becomes more difficult with time as new addresses are added to a single wallet.
Bitcoin eliminates Remittance:
Bitcoin enabled remittance services to have the potential to be more cost-effective, private, and secure than traditional systems. As a result, it can relieve developing nations, ex-pat workers, and families in developed countries. However, despite many recent developments in this area, there is still a long way to go before Bitcoin completely replaces remittance services.
Bitcoin provides the most comprehensive solution to remittance services regarding security, privacy, and cost; as Bitcoin improves, so will its use case, as remittances move from cash transfers to data and electronic transfers.
Not just amazon companies like Starbucks, Microsoft, and PayPal took a positive stance toward bitcoin. Many companies gave away free products for purchasing bitcoins, and the demand for bitcoin has grown more and more. Bitcoin presents a new technology still in development; hence, it lacks some of the required features that people can expect from a global currency. People are hoping bitcoin will mature over time regarding price shocks and technical prospects.
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