To be honest, Bitcoin has been given many names. To some people, it is definitely the future of cash due to its decentralized nature and inability to be affected by inflation. To other people especially drug dealers, its private nature is a perfect haven if you want to run away from authorities. But regardless of what it may be called, bitcoin is certainly going to revolutionize the way we bank. If I say Bitcoin, it seems as if I may be undermining other cryptocurrencies. Let’s just say, Cryptocurrencies in general are going to definitely revolutionize the way we bank and do transact.
To earn money, as in traditional money like the Pounds, USD, etc. you need to work or sell something as then people pay it to you in return. But for that money to be there, has to be printed somewhere, valued and then put into circulation. To earn bitcoins however, you can either mine them or sell goods and services and get paid in bitcoin or you can purchase them by exchanging them with your common currency. When you make a purchase with Bitcoin, the transaction is recorded in the Bitcoin network through a blockchain thus authenticating and confirming the transaction.
In itself, the Bitcoin has travelled quite a long journey and has come a long way and even though it is valued at around $7300 as of today, it is still a long way to go. Many investors whose primary focus of investment is Bitcoin are estimating that the currency is likely going to surpass the $1 million mark in about 5 years from now, that is by 2023. Yes, Bitcoin has not been rapidly adopted that much as yet but if you look at the horizon, it’s easy to see that the future is indeed brighter than ever. Mark Zuckerberg, Facebook’s CEO recently announced that he is looking into and studying Bitcoin with the hopes of making it a payment option for Facebook’s advertisers. It’s crazy, I know but it’s on the cards and definitely coming. Imagine the impact it would have if the world’s largest Social Network embraces it? It would be a large vote of confidence in the currency that would encourage everyone else to jump on the train.
Okay, we are done with the basics and if you have been vested in the topic, you already know that Bitcoin is decentralized, secure, etc. Now the question is how is it going to change the world? The answer to that is simple. If we look at the current world’s financial system, one thing that’s bugging a lot of people and has done so for decades is the issue of transaction and transfer fees. Using statistics from 2013, global retail sales equaled $10 trillion and the amount of transaction fees for that were $260 Billion. If people had been using Bitcoin to make their purchases, the amount of transaction fees would have been cut by almost 60% to $104 Billion, that’s huge I know.
Imagine what those savings would mean for small businesses who often have to give 2% from each sale to providers of merchant solutions like paypal, mastercard and visa? In short it would help them save a lot of money which gives them additional money to reinvest thus creating more employment. More people employed would result in better standards of living and everything else escalates from there.