Bitcoin has been criticized for years until it became costlier than gold. Nowadays, bitcoin and the technology that it is based on blockchain, is finding its use in numerous sectors with governments and companies constantly searching for new implementation ways. Bitcoin is a cryptocurrency and based on a distributed ledger technology which means that there is no central authority that governs it and therefore, it is transparent and anonymous at the same time. Let’s go over some ways how the bitcoin is affecting the economy.
Bitcoin is decentralized which means that there is no need for a third-party (such as a bank) to intermediate. This has caused quite a lot of turmoil in the banks since if bitcoin succeeds, they might go out of business. Additionally, another benefit of this is that transaction usually last a couple of minutes and fees are really low.
Reduction of Fees
There are approximately 2 billion unbanked in the world. In countries in development, cryptocurrencies could provide a way to engage these people in the global economy. Average migrant workers pay around 9% of what they own for transfer fees when they send their money to their family. However, if they were to switch to cryptocurrencies, these costs could be almost zero.
Bitcoin is also changing the way how the online casino industry is shaping. Bitcoin casinos offer complete anonymity to their players which is why it is possible for people from all around the world to play slots with bitcoin in Canada. Additionally, it provides security because, in order to register for a bitcoin casino, a player only needs to submit their email whilst for regular online casinos they would need to provide personal details, bank account, address, and sometimes even a scanned ID. Since third-parties are eliminated, there is a significant reduction of transaction fees benefits both the operators and the players and the operators can provide better incentives and bonuses for their players. Additionally, bitcoin is still not taxable.
Cryptocurrencies are hard to regulate because they are anonymous and governments fear avoidance of taxation. A lot of countries are considering to impose strict regulations and some, such as Venezuela, are developing their own cryptocurrencies.
The bitcoin and the blockchain technology have their positive and negative sides but without a doubt, they are changing the way our economy works. It will be interesting to see what the future holds for them.