Hopefully this is not the first time you have heard about Bitcoin. But are you still wondering why there seems to be quite a buzz worldwide about this new form of digital money or what we call cryptocurrency?

Let’s begin by imagining a new globalized world where you can send your money to anyone, anywhere in the world within minutes! And you do not even necessarily need to open a bank account to do this. In simple terms, it means no banks or governments hold the power to dictate what you can or cannot do with your own money.

For example, just think about how convenient it would be if you can quickly send money to your children who are studying abroad. Or perhaps you have relatives who are settling down in a foreign country and they need some emergency funds. Bitcoin can help in such cases.

The impact of Bitcoin in the world is actually a lot more profound that just a faster means of sending money across international borders. In fact, Bitcoin is already revolutionizing the global financial system.

However, we will not dwell too much on the technical aspects of Bitcoin’s impact on the global economy because most common people seem to be not interested in economics. Nowadays, common people like you and me are more concerned about matters like generational wealth and fighting price inflations that cause prices of goods and services to skyrocket.

Therefore, let’s take a deeper look into the benefits of Bitcoin from the perspective of a common folk.

Solving A Problem With The Banking System

Have you ever wondered why banks need days and high commission fees to transmit digital money over the Internet? It could be underlying decades of bureaucracy at play here which is hindering the process from becoming more efficient and customer friendly.

If you are like most people who store your money in a bank, you must understand that what you assumed is your money actually legally belongs to the bank. Whenever we withdraw money from our accounts, it is actually the bank granting us permission to conduct the withdrawal under approved conditions imposed by the bank and government.

This is why sometimes you may need to show the bank officers some documents before you are allowed to withdraw a large sum of money. Let’s not forget another weak point with the international banking system. Sending any sum of money across international borders normally require days. Customers are forced to accept these conditions because there seems to be no other choices. With Bitcoin, it is not mandatory to have access to a bank account, though at this point of time, the bank does make it very convenient whenever you need to exchange Bitcoin for cash.

Let’s imagine too how much easier it will be for workers who need to make a living in a foreign country to send money back to their families at home. For such foreign workers, they might not even be able to open a bank account in the country they work in due to stringent banking regulations. Hence, many of them rely on other money remittance services that charge hefty commission fees.

This decades old process of requiring days and hefty commission fees to remit a sum of money across international borders is still deeply ingrained in the international banking systems. This is one of the major problems that Bitcoin promise to solve.

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The Birth of Bitcoin

Bitcoin was introduced in 2009 by an entity known as Satoshi Nakamoto. Till now, no one can absolutely prove whether this entity is an individual or a group of people. Satoshi’s idea may sound simple but it is actually decades of hard work behind the scene before it became a revolution.

As we have seen in past economy collapses, our world desperately needs a new kind of global money that cannot be controlled by any government or banks. Thus, this money must be able to be transmitted from peer-to-peer without any middleman. In other words, this means anyone can directly send any sum of money to another party without any centralized authority.

Understanding Bitcoin and its vast potentials can be quite fascinating even if you’re not tech-savvy. As you gain more understanding about Bitcoin, you would surely also come across numerous criticisms against Bitcoin.

Bitcoin: From A Cult Interest to Prominence

Very few people knew about the inception of Bitcoin. In its early years, it was mostly used by tech enthusiasts who are interested in new financial experiments. It is only in recent years where the common investors, corporations, governments and institutions began to pay more attention. Here are some key reasons why:

• Transparency:
  All Bitcoin transactions are recorded on a public ledger called blockchain. This means anyone can see where all the bitcoins are moving, which reduces the chances of fraud. The Bitcoin blockchain is also pseudonymous, meaning your true identity is concealed unlike in a bank’s ledger where your bank will require you to undergo a strict identity verification process before you are allowed to open a bank account.
• Security:
  Transactions are protected by strong encryption, making it very hard for anyone to steal or tamper with the data. It is believed that Bitcoin is theoretically impossible to hack, meaning no one can tamper with any of the data that has been verified into the Bitcoin blockchain. This is not the case with the digital systems within banks as you are trusting the bank with all your personal details, which in recent years have proven to be a fallacy as scams become more and more rampant.
• Limited Supply:
  Only 21 million Bitcoins will ever exist in its lifetime. This scarcity combined with increasing demand over the years has exponentially driven up Bitcoin’s value since it was launched in 2009. A few famous Bitcoin maximalists have even predicted that its value could potentially reach $1,000,000 in the near future.

Bitcoin’s Journey To Stardom

In 2010, a programmer famously bought two pizzas for 10,000 bitcoins. At that time, this was equivalent to just about $30. If the owner of that pizza shop kept all those bitcoins, it will be worth hundreds of millions of dollars today!

This story highlights how Bitcoin’s value has exponentially surged in a relatively short time since its inception in 2009. Even the value of a typical urban house does not appreciate that much in comparison. Therefore, it does seems like our future is indeed digital and we are just only beginning to experience how digital power can impact our lives.

By 2017, Bitcoin hit a milestone of reaching $20,000 per Bitcoin. At the time of writing of this article, its value is hovering above $70,000. This dramatic increase quickly caught the attention of mainstream media and everyday people, sparking a global conversation about digital currencies.

Did you know Bitcoin is now the best performing asset compared to traditional assets like gold, silver and real estate? Bitcoin’s increase in value is also in contrast to many government issued currencies that are suffering from declining purchasing power. I hope you are now paying more attention to Bitcoin.

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Revolutionizing Financial Markets

It is important to understand that Bitcoin is more than just a digital currency because it holds the potential to revolutionize the entire global financial system. Here’s how:

• Decentralization:
  Traditional banks are central authorities that control money flow but Bitcoin operates without a central authority. This means no single entity controls Bitcoin, making it more democratic and potentially more resilient to financial crises.
• Lower Fees:
  Sending money across international borders can be expensive due to various fees. Bitcoin allows for international transfers with minimal costs, making it a much cheaper alternative, especially if you need to transfer large sums of money.
• Financial Inclusion:
  People still do not have access to banks in many parts of the world. Bitcoin can provide these individuals with a way to participate in the global economy as long as they have secure access to the Internet.
• Speed:
  Traditional international financial transactions can take days to process, where as Bitcoin transactions can be completed in minutes! Just imagine how wonderful it can be if you can settle the payment for a new house with much less hassles.

The Road Ahead for Bitcoin

Bitcoin is still a relatively new and evolving technology despite its immense potential. Its price can be very volatile, meaning the price can go up by hundreds or even thousands within a day. This is probably one of the reasons why some people are still hesitant to invest in this asset. Many people are resistant to change and taking on risk, which lead to a false sense of security of holding on to fiat money. Unfortunately, many people are ignorant to the fact that their money in the banks are drastically decreasing in value as prices of good and services inflate every year!

Moreover, governments and financial institutions are still in intense debate on how to deal with Bitcoin. Some see it as a threat while others see it as an opportunity. As regulations become clearer, more people will be motivated to adopt it. As demand for Bitcoin increases, we can thus expect its value to go up further.

Embracing The Future Of Decentralized Finance

The idea of using Bitcoin might seem daunting at first for people who are not very tech-savvy but the technology is becoming more layman friendly. Another good news is many progressive and advanced countries in the world have legalized holding Bitcoins.

Cryptocurrency exchanges in respective countries are also making it very easy for people to purchase Bitcoins through user-friendly apps. At this stage, buying and trading Bitcoins is just like learning how to use any other app.

Progressive people are definitely beginning to change their minds about keeping their money in banks. Surely you are like most people who are now aware of rising prices and stagnant wages that cannot keep up with inflation. People like to spend money but the money that is controlled by the governments and banks are just not fulfilling the people’s needs. Bitcoin on the other hand seems to offer a viable solution to this nagging problem.

Conclusion

Bitcoin represents a significant shift in how we think about money and financial transactions. Its journey from a little-known digital experiment to a global financial phenomenon is nothing short of remarkable. It might take some time for the people and governments to fully understand and embrace the potential benefits of Bitcoin.

Those who are now willing to embrace cryptocurrencies have a good chance of reaping benefits as long as they are willing to put in some serious effort and time into learning about the cryptocurrency markets. As we move forward into a more innovative digital age, Bitcoin could very well become a staple in our daily lives, transforming how we save, spend, and think about money.

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