Before we speak about the future of cryptocurrencies, it’s important to remember the history and what it was like when it first started. When Satoshi Nakamoto, the founder of Bitcoin, first published his whitepaper in 2008, many people dismissed it as a fad and a con to get people to give up their “real” money.
Many skeptics and financial analysts predicted that Bitcoin would never be accepted by the general public and that it would fizzle and die out in a year or so.
Thankfully, the blockchain group came together and collaborated to make Bitcoin a success. They saw the blockchain technology’s potential and what it could mean for the finance industry. They recognized the need for cryptocurrency because the current financial system, based on banks and governments, had too many flaws and was causing national economies to implode.
They recognized that conventional currencies made it difficult to control inflation, and that the poorest people also did not have easy access to banks. Receiving or sending payments was also a pain, with transaction fees taking up a large portion of the budget.
Banks charge exorbitant fees just to give their customers access to their own capital, and the government does little, if anything, to assist the public.
Bitcoin proponents argue that the current financial system is a mess, with banks and governments colluding or cooperating rather than assisting their people.
financial needs, yet to extract as much revenue as possible from them in the form of fees.
All of that changed with Bitcoin. By using Bitcoin, you are bypassing the middleman. There are no more banks to deal with, and there is no longer any government spying on your bank accounts. You are your own bank with Bitcoin. You’re a bank teller who sends and receives deposits, as well as a banker in charge of safeguarding your funds.
Bitcoin has been a pioneer on a number of fronts. It paved the way for other cryptocurrencies to thrive as the first mainstream cryptocurrency, and the global community has slowly taken note over the last few years. Continue reading to learn about the potential possibilities that Bitcoin and cryptocurrencies offer!
A Massive Outpouring of Public Support
Obtaining a credit card or a business loan is relatively simple in most developed countries. In developed nations, though, you’d have to jump through a lot of hoops and go through a lot of government red tape to get one. With Bitcoin and cryptocurrencies, however, all you need is a digital wallet to begin collecting cryptocurrency from anybody, anywhere in the world.
You don’t even need Internet access at home; simply go somewhere with good Internet access and build a fast wallet online or on your computer. Of course, storing your crypto online is not a safe idea, so you should consider using a hardware wallet or a paper wallet instead.
However, online wallets are ideal for small transactions, so if you need to pay a gas bill or a credit card bill, simply check the utility company’s bitcoin wallet QR code and submit your cryptocurrency payment. There’s no need to waste the whole day in long lines!
Many companies have already begun to embrace bitcoin as a form of payment (though they are still in the minority). These foresighted business owners recognize the value of accepting bitcoins and are reaping the benefits of their wise decision!
Bitcoins can be used to purchase almost anything. You can buy plane tickets, rent cars, pay for college tuition, buy food, and buy Amazon items using Amazon gift cards purchased from third-party sites, among other things.
We would expect a lot more companies to use bitcoin as a payment method in the future, which will be a win-win situation for both business owners and consumers.
Businesses can receive payment quickly, and consumers will be able to purchase goods in a very convenient manner (using a payment gateway like BitPay, which provides instant bitcoin to fiat currency conversion).
Bitcoin in Emerging Markets
It’s no surprise that Bitcoin has exploded in popularity in recent years. In reality, bitcoins are being used to make financial transactions in Zimbabwe. The demise of the Zimbabwean dollar forced the country to rely on the US dollar as its primary currency.
However, since their government is unable to print US dollars, this is not a viable option. Venezuelans are also dealing with the same problem. The Venezuelan bolivar has been almost unusable due to hyperinflation. People have resorted to using bitcoins to pay for everyday items such as food, medication, and groceries, among other things.
Bitcoin is a beacon of light for Zimbabweans and Venezuelans, as well as Vietnamese, Colombians, and residents of countries with hyperinflationary currencies, since it is not subject to the whims and manipulations of their local banks or governments.
Their current economic condition exemplifies the drawbacks to having a central authority control a country’s currency, while also highlighting the many advantages of using Bitcoin, a decentralized and completely open financial network.
Governments may soon step in to control the use of Bitcoin and other cryptocurrencies, given the widespread support for Bitcoin among people in developing countries. Although we can’t foresee the future, Bitcoin is a fantastic inflation-free alternative to conventional currency right now.
And, with Bitcoin and cryptocurrency prices skyrocketing, many people now have access to buying power that their national currencies do not.
International Payments That Are Fast And Inexpensive
The speed at which the receiver receives their bitcoins is one of the key advantages of bitcoin payments. This is ideal for those who recruit freelancers or workers from other countries.
Since they’re getting money from you, a foreign customer, the workers don’t need to open a bank account or pay fees left and right.
Of course, we must not overlook the fees you will be charged by your bank each time you remit or pass funds to your overseas employees.
You’d have to account for the exchange rate in addition to the fees you and your receiver pay. Most banks and money transfer services will inform you up front that “this” is the current exchange rate, but when compared to real rates, the bank rate will be significantly lower.
You’ll find a difference in the exchange rate used for PayPal payments. When you’re exchanging small sums, you probably won’t notice the exchange rate, but when you’re dealing with thousands of dollars, the fees will easily add up to a large sum.
You can say goodbye to all of these exorbitant fees when you use Bitcoin.
You must pay a small fee to the miners for each bitcoin transaction, but it is nothing compared to what your banks are charging you! The mining fee will be the same if you submit 1,000 bitcoins or 0.01 bitcoins since the fee is calculated in terms of bytes rather than bitcoins.
The number of inputs and outputs per transaction will determine the size (in bytes) of your transaction. Without getting into technical details, it’s important to remember that mining fees are extremely low as compared to bank fees. This is why Bitcoin and blockchain will have a significant impact on the future. To stop paying those exorbitant bank fees, more people would transact directly with one another.
With more people sending cryptocurrency to each other directly, third-party money transfer services and even banks have become obsolete. Though it may take several years, it is still a possibility once everyone understands the advantages of using cryptocurrency to send and receive payments from everyone in the world in a matter of minutes.
Combating Corruption and Crime
Since many people believe Bitcoin is an encrypted network, they are concerned that it is being used by money launderers, terrorists, and corrupt officials. Yes, the blockchain records all authenticated transactions, but there are no names mentioned there.
You can only see alphanumeric codes, and there are a number of them. If you download the free and open source Bitcoin Core client, you’ll also have to download the entire blockchain, which is now over 100GB in size. Since 2009, the blockchain has held millions of bitcoin transactions. You’ll also be able to see Satoshi Nakamoto’s first ever transaction.
This is brought up to emphasize the fact that Bitcoin is not truly anonymous. Instead, it’s pseudonymous, which means that users can hide behind pseudonyms, but digital forensics experts can track down who owns Bitcoin wallets if they look closely.
Of course, this is a time-consuming task, but when you’re after criminals who have laundered millions or billions of dollars in bitcoins, catching them is a top priority. In reality, experts claim that because of their strict bank privacy rules, criminals will be better off stashing their stolen loot in offshore bank accounts.
People believe they can easily conceal their illegal transactions in the alphanumeric labyrinth known as the blockchain because bitcoin is easier to pass around. In short, due to Bitcoin and the blockchain, a host of offenders have been apprehended.
If and when cryptocurrency gains widespread support and acceptance among the general public, authorities may find it easier to track down and apprehend offenders who use cryptocurrencies to conceal and transfer stolen funds.
Blockchain Technology Would Eventually Become Commonplace
Many governments, banks, and private companies are investigating how to incorporate blockchain technology into their goods and services. Bitcoin and other cryptocurrencies are built on the blockchain technology.
Many industries around the world are already beginning to recognize and implement the technology. Although it will take several years, it is at least a step in the right direction for the blockchain revolution.
Ethereum and Hyperledger are two of the most common blockchain technologies today. You may be familiar with Ethereum, which is the second most widely used cryptocurrency after Bitcoin. But it’s more than just a cryptocurrency exchange.
Ethereum is a platform that allows everyone to build smart contracts that allow people to trade or exchange something of value, such as money, real estate, stocks, and other assets. The contract is open to the public and registered on the blockchain, which ensures that other people can see it.
The best part about smart contracts is that they allow you to automate contracts without having to pay a middleman like a bank, stockbroker, or lawyer.
Hyperledger, on the other hand, is an open source, cross-industry collaboration project that includes participants from major corporations including Deutsche Bank, IBM, Airbus, and SAP.
The collaboration aims to create a “new generation of transactional applications that build trust, accountability, and transparency,” according to their website. In the real world, these applications have the ability to simplify business processes and reduce the expense and complexity of different systems.
These are only a few examples of how blockchain technology can impact the future of the planet. While the blockchain is just a decade old, it has already had a positive impact on the lives of many citizens.
Are You Ready To Join The Cryptocurrency Revolution?
You’ve heard a lot about the advantages of using Bitcoin, cryptocurrency, and blockchain technology throughout this guide. Investing in cryptocurrency can be beneficial to you, but you should always conduct thorough research before deciding which cryptocurrency to invest in.
Bitcoin can be prohibitively expensive at the moment, but keep in mind that you do not have to purchase the whole bitcoin. You could also consider investing in other emerging cryptocurrencies that have a good track record.
With cryptocurrencies appearing to be on the verge of being incorporated into conventional financial markets, investing in cryptocurrency is no longer a frightening prospect. In reality, it may be the best financial decision you ever make for the future of yourself and your family.
Should You Invest in Cryptocurrencies?
If you’re thinking about investing in cryptocurrencies, you should treat it like any other highly speculative venture. In other words, accept the possibility of losing the majority, if not all, of your investment. A cryptocurrency, as previously said, has no intrinsic value other than what a buyer is willing to pay for it at any given time. This makes it extremely vulnerable to large price fluctuations, increasing the chance of a loss for an investor. On April 11, 2013, for example, Bitcoin fell from $260 to about $130 in a six-hour span. If you can’t handle that level of risk, look for investments that are better tailored to your needs. While opinions on the merits of Bitcoin as an investment remain divided – proponents point to its limited supply and growing use as value drivers, while detractors see it as yet another speculative bubble – a cautious investor will do well to avoid this debate.