Published on October 30th, 2021
Over the past few years, cryptocurrency has dominated the global market. Investors and private individuals are becoming interested in investing in crypto due to its remarkable features. As an alternative to cash, cryptocurrency is a fast and easy transaction with low fees or, sometimes, free of charge.
There isn’t a need for intermediaries, and due to its blockchain technology, every bit of information is safe and secure. To start your trading journey, we recommend that you use a trustworthy platform like Immediate Edge.
How does blockchain technology work?
The blockchain technology was originally invented along with the first cryptocurrency, Bitcoin. Bitcoin is the most popular cryptocurrency in the market, while the term cryptocurrency is a medium of exchange just like the US dollar.
It was invented by a person or a group of people under the pseudonym Satoshi Nakamoto in 2008 and was finally launched in 2009. It utilizes blockchain technology. This system makes the production of cryptocurrency possible.
Basically, the blockchain technology serves as a public ledger that records all transactions across peer-to-peer networks, meaning it allows transactions, assets and data exchanges in every user or miner worldwide.
How can Bitcoin contribute to a better economy?
Cryptocurrency is one of the latest trends in the financial world. It has been the most debated topic, whether it can replace fiat currency in the future or it may just be another fad.
But over the years, cryptocurrency, particularly Bitcoin, has proven its resilience. It has set an ideal standard on how a financial system should be by offering faster and more convenient financial services.
Here are some ways how Bitcoin can help build a better economy.
1. Improvement in Economic Activities
The creation of cryptocurrency has led to the establishment of industries and corporations dedicated to the supervision of digital currency exchanges.
Some early adopters of cryptocurrency have been given chances to grow their investments. Since Bitcoin was introduced, there are now over 10, 000 cryptocurrency platforms.
Several companies started recognizing Bitcoin and other cryptocurrencies as a mode of payment. Many individuals have invested in mining and trading bitcoins which helped them acquire assets and gave them financial growth opportunities.
2. Easier Financial Services for Poorly Banked Countries
For countries that are deprived of basic banking services that will help them out in case of crisis, loans, for instance, cryptocurrency enables them to avail financial services across borders without intermediaries and free of charge. The specialized technology of Bitcoin empowers those who are financially deprived.
3. Low Transaction Cost
One of the best features of cryptocurrency is that it offers the lowest financial transaction fees compared to traditional banking services. Cryptocurrency transaction fees in the market can be availed for as low as $0.15-$0.25.
4. Transparency of Transactions
As discussed earlier, cryptocurrency’s blockchain technology offers an unprecedented level of transparency as all transactions are recorded in a public ledger called the blockchain.
This technology uses a peer-to-peer network with a decentralized nature that cannot be cheated. Group of computers that make up Bitcoin called nodes are operated by different individuals around the world. Every transaction made can be transparently viewed anytime you please.
5. Empowering Entrepreneurs
Nowadays, it is so much easier to do business using cryptocurrencies and blockchain technology. Not only does it help small business owners and entrepreneurs with its low-cost transaction fees, it also enables them to receive payments using their preferred currency.
With the help of digital or crypto wallets, business owners can easily convert bitcoins into fiat currency and use them to invest and purchase as well as for payment transactions.
In this changing world, the financial system is constantly evolving. More and more people are beginning to adapt to new technologies and innovations.
The birth of Bitcoin simply indicates that there are problems with financial institutions that need to be addressed. Cryptocurrency, despite some negative claims, has given millions of people financial opportunities.
Its technology can break distance and barriers. And most importantly, it helps shape our lives and contributes to economic growth.
Risk note: This article is intended to educate the readers about the contribution of cryptocurrency to global economic growth. Investment in cryptocurrency is only encouraged when you have high-risk tolerance. Crypto price is subject to volatility, and you must have a deeper understanding of it before you begin to invest.