The term “Bitcoin” is surfacing so much in various forms of media that it’s difficult not to come across it even once. Since its humble start in 2009, the digital currency has steadily worked its way up to make an impact that has sent shivers up and down the global financial landscape. Darting from $1000 in January 2017 to $18000 in December, Bitcoin, the highest searched topic on search engines, is clearly a dominating disruptive force that can’t be ignored anymore. Here’s how the revolutionary innovation is transforming the global economy in 2018.
1. Minimizing Reliance on a Particular Currency
From the way we communicate, to how we buy things, enjoy entertainment, and transact, today’s digital revolution is dramatically disrupting almost every sphere of our lives. With the launch of online banking and mobile applications, banking has also been a part of the digitization process, but as far as Forex is concerned, it has till now been a strong bastion of the banks.
However, with the rapid emergence of Bitcoin, things seem to be drastically changing. By offering easy transfer facility to any FIAT currency, such as the US dollar, Bitcoin is increasingly reducing the dependence on a particular currency, giving the power to the people to hedge their investments and savings against inflation. By weeding out the dependence on a single currency, Bitcoins also help business entities to become truly global by enabling better, safer, and faster cross-border trades. Belfrics payment gateway, for instant, allows businesses to benefit from increased payment speed and security, reducing transaction costs, and protecting them from currency volatility.
2. Accessible Credit System
Bitcoin, being an unregulated currency that is solely based on data, enables unrestrained access to a secure credit system. Merchants can cut down their high credit card processing fee and the currency conversion fee by adding Bitcoin as their preferred means of payment acceptance. By implementing Belfrics payment gateway, merchants can instantly start accepting payments in Bitcoin from computers and mobile devices anywhere in the world.
Backed by the state-of-the-art Blockchain technology that uses cryptography, it can be said without a doubt that Bitcoin in days to come will radically bridge the gap between people and global merchants. This will surely open up new opportunities and markets that will bring the world closer, heighten economic growth, and strengthen the global economy.
3. Disruption of Traditional Banking System
Earlier, all financial transactions, directly or indirectly, were facilitated through central banks. With the emergence of Bitcoins, the trend is rapidly changing, as people can now make autonomous transactions without the intervention of any third party. This is incrementally transferring the power from central banks and government bodies to the masses, forcing many central banks to explore the possibilities of issuing a digital version of their FIAT currencies. This futuristic trend in financial transaction handling has the superpower to change the structure of world economy.
4. New Regulations
Seeing the meteoric rise of Bitcoin as an alternative to traditional currencies, central banks have now started to flex their muscles to put a control on the cryptocurrency’s growth momentum. This will ultimately lead to the laying of new regulations, addressing the digital currency ecosystem, which will enable legitimate corrections to make the cryptocurrency market more transparent and secure for investors in the coming years.
5. Impact on International Remittances
The area that probably holds the biggest opportunity for Bitcoin around the world is overseas remittances. Right now, the money sent from one country to another is handled by numerous intermediaries including currency exchanges, banks, and wire services. According to data published by Businessweek, the average fee paid by people per remittance service is almost nine to ten percent of the total transaction value, with an additional fee of about five percent for converting the wire money into cash. The fee levied by agents like Western Union is mainly due to the technologies involved in transferring money from one country to another, and for providing legitimacy of the transaction. With Bitcoin exchange platforms like Belfrics, the process is secure and anonymous.
6. Emergence of New Markets and Opportunities
Digital currencies like Bitcoin have opened the gates for the emergence of a new disruptive ecosystem that can infuse fresh opportunities in the global market. The near-zero financial transaction fee, along with other compelling benefits, is making these currencies more appealing and superior than traditional FIAT currencies that most of us are accustomed to using. With greater opportunities for cryptocurrencies ready to be rolled out any moment, it can be certainly stated that it is just the beginning of a new digital era in the global economy.
As the world of digital currencies takes over the traditional monetary systems, the adoption and acceptance of Bitcoins across various industries and markets is likely to soar. But one thing is certain — Bitcoin is re-shaping the global economy like never before.
Create a secure, instant, and free digital wallet with Belfrics today or get in touch with us to understand how Bitcoins can change the way you do business, for the better!