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Ten years ago, Bitcoin was created by an unknown group of people under the name Satoshi Nakamoto. Despite being developed more than a decade ago, it is only in the past year that Bitcoin increased in popularity. The price of one Bitcoin has been drastically changing over the last few months, beginning in 2017. The volatility of Bitcoin’s price says a lot about the Bitcoin future and how it revolutionized the world.
The existence of Bitcoin has a massive impact on many sectors, like governments and industries. The effect of Bitcoin in society pushes these sectors to transform their current systems to adapt to digital currencies.
Impact On Banks And Industries
Digital currencies, like Bitcoin, has a significant impact on central banking. Cryptocurrencies can interrupt the ability of the bank’s influence to control the economy and issuance of money. Many banks are now observing the developments of Bitcoin and other digital currencies. There are even banks that are now issuing their versions of these online currencies.
Aside from the possible disruption of bank operations, Bitcoin also had an impact on various industries. As the value of cryptocurrency rose, a lot of people quickly joined the hype. With that, many sectors took this opportunity to begin accepting Bitcoins as payment. Digital companies like WordPress and Cheapname started accepting Bitcoins in exchange for their services online. Steam, a gaming platform, and distributor started accepting cryptocurrencies as payment also.
Impact On Governments
Just like how the existence of Bitcoin disrupts a bank’s ability to influence the economy, it has a similar effect on politics as well. Since the rise of cryptocurrency, no single government can control the system. Bitcoins and other digital currencies are not governed by forces that influence the value of regular money. Bitcoin value is governed by codes alone.
Although the effect of the Bitcoin’s existence hasn’t been fully realized by the masses yet, the number of people learning about this is increasing by the day. Eventually, the government will have to study how they can regulate this currency. Governments will have to revolutionize tax systems involving Bitcoins and how they can control it once the number of users increases.
Impact On How To Transfer Money
To transfer funds from your bank account to another bank, it would at least take two to three days for the funds to be fully transferred. Many people are opting to buy Bitcoin for the sole purpose that money transfer will be much easier. International remittances, the money sent by people working in other countries, will be more comfortable through digital currency transfer.
Today, when someone needs to send money to a different country, it will go through several processes first. The funds will be handled by banks, wire services, and currency exchangers. On average, remittance services can cost about 9 percent of the total money to be transferred. Most of the costs go to the technologies involved in the processing of the transfer. What companies like Western Union pay to transfer your money is to ensure the security and legitimacy of the transfer process. If you move through Bitcoin, the funds will be remitted instantly, and you won’t have to pay a single cent for processing and remittance.
Impact On How To Purchase Goods And Services
If you want to purchase something, you will have to pay significant fees, and there are other charges when you process payments through your credit card. The great thing about industries that accepts Bitcoin as payment is that they can provide you with the price of their products without added charges. These charges are usually from third party payment processing companies.
Once people start to use Bitcoin as a form of payment to merchants online, credit card companies will lose about 2 – 3 percent of their charges to retail merchants. Aside from that, money transfer fees are said to fall by as much as 90 percent. The effect is advantageous for the clients and smaller businesses but will be the loss for some industries. If Bitcoin is adopted to mobile application transactions, people can now purchase anything instantly without worrying about additional costs.
Bitcoin And Our Global Future
Handling and using Bitcoins has its pros and cons. Bitcoin’s value is highly volatile, and there is no governing body that regulates the currency. However, in the decade that it existed, it revolutionized several systems in society. Banks and governments are the most affected by the existence of Bitcoin because there are no laws and regulations that surround it. Despite the fast-paced changes, Bitcoin has affected specific sectors, and it has revolutionized how people can handle their money and how they can pay for goods and services.