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?
Well, let’s begin by imagining a world where you can send money to anyone, anywhere in the world and instantly! And you do not even need to open a bank account to do this. That means, no middleman or government telling you 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 children who are studying abroad. Maybe you have some relatives who are settling down in a foreign country and they need some emergency funds. Bitcoin can make such situations so much less stressful.
Let’s take a deeper look into the potentials of Bitcoin, and you will see how Bitcoin can benefit common people like you and me.
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 the 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.
This is why you 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, imagine how much easier it will be too 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.
The Birth of Bitcoin
Bitcoin was introduced in 2009 by an unknown person or group of people using the name Satoshi Nakamoto. The idea was simple but revolutionary. Our world needs to use a new kind of global money that is not controlled by any government or banks. The money must be able to be transmitted from peer-to-peer. This means anyone can directly send any sum of money to another party without any centralized authority.
Understanding Bitcoin and its potential can be quite fascinating even if you’re not tech-savvy. Since we are now living in a rapidly evolving digital age, is it not the opportune time for us to advance to a better and more efficient system? Is it not a good thing for people like you and me if the monopolistic powers of the banks are reduced?
Bitcoin: From A Cult Interest to Prominence
Very few people knew about Bitcoin in the beginning. It was mostly used by tech enthusiasts and people interested in new financial experiments. But as time passed, all sorts of people, corporations, governments and institutions started to pay more attention. Here are some key reasons why:
- Transparency:
All Bitcoin transactions are recorded on a public ledger. This means anyone can see where money is moving, which reduces the chances of fraud. - Security:
Transactions are protected by strong encryption, making it very hard for anyone to steal or tamper with the data. - 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.
By: Vladimir Tatarovich
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 $30. Today, those Bitcoins are worth hundreds of millions of dollars! This story highlights how Bitcoin’s value has exponentially surged in a relatively short time since its inception in 2009.
Bitcoin’s price began to rise as more people begin to see its potential. 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 paper currencies that are suffering from declining purchasing power. Are you now paying more attention to Bitcoin?
Bitcoin Price Calculator
Bitcoin Price Chart
The price of Bitcoin has reached above above $100,000! Are you missing out on opportunities because you lack cryptocurrency knowledge?
You can enrol in free Bitcoin and cryptocurrency online courses with Alison. You only pay if you need the certificate and I may get a commission as an affiliate.
Revolutionizing Financial Markets
It is important to understand that Bitcoin is more than just a digital currency because it has the potential to revolutionize the entire 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 cheaper alternative. - 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!
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 of us are resistant to change and taking a bit of 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 gradually decreasing in value.
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 Change
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 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 financial lives, transforming how we save, spend, and think about money.
