Ever since it started gaining popularity, Bitcoin has been transforming the world of finance.
It has challenged traditional currencies and it’s safe to say it launched a new era of economic exchange. It’s beginning to solve some of the challenges fiat currencies often face and it’s changing finance for the better. But how exactly is Bitcoin doing this? We answer this and other important questions in this post.
The Use of Bitcoin in Everyday Life
Originally, Bitcoin was seen as an investment that could pay off as cryptocurrencies become more widely accepted. However, the time proved that Bitcoin is much more. The most popular digital currency now has practical use cases in our daily lives and it looks like its role is only going to increase.
Bitcoin has already become a common payment tool and more merchants are starting to accept it. Whether you want to buy airline tickets, book a hotel room, or buy tech online, you can use it to make payments. Even the famous restaurant chain Subway now accepts Bitcoin in some of its outlets.
But there’s more. Bitcoin has also emerged as a popular payment method when gambling online. This Bitcoin casino guide explains how the popular cryptocurrency is used for this activity and which casinos accept it. People looking to gamble in a real money online casino find it a much better alternative to traditional currencies due to faster transactions, anonymity and the security blockchain technology offers.
For the same reasons, people prefer using Bitcoin when sending money to friends and family abroad. Bitcoin allows them to bypass all governmental restrictions and ensures their money will safely get to where they want it to be. And it’s not just individuals who are aware of these advantages. Some of the largest organizations in the world see them too. For example, the Ultimate Fighting Championship (UFC) now sends bonuses to its fighters using Bitcoin.
The Decentralized Nature of Blockchain
Earlier, we mentioned that you can use Bitcoin to send money to any location in the world safely. But how come Bitcoin has emerged as the safest option when transferring money? The answer lies in the decentralized nature of blockchain.
This decentralization refers to the removal of control and decision-making from any centralized entity such as a group or organization. This means you can send as much money as you want to whoever you want, without an authority observing your every move.
Additionally, the transparency Bitcoin offers is something no traditional currency can match. When using old methods to send money, you can’t do anything else other than hand it over and hope it reaches your desired destination. When using Bitcoin, you can see exactly where your money is at all times due to the nature of blockchain.
And if you need more convincing, Bitcoin has proven its superior status in numerous ways. Just think about the fact that the network operates 24/7 365 days a year. This means that, unlike traditional financial services, it doesn’t close for public holidays and on weekends.
Not to mention that in the past, we’ve seen that traditional financial systems aren’t as safe as they seem. Poor monetary policies have resulted in drops of value in currencies and exchange rates have proven to be subject to manipulation. Since the value of Bitcoin is independent from any government or central banks, things like this aren’t something to worry about.
The Ability to Move Bitcoin
Gold has always been seen as one of the most valuable assets to possess. Not only because its value goes up consistently, but also because it can easily be moved. Whenever you want, you can exchange it for fiat currencies such as the US Dollar or Euro. Well, the same goes for Bitcoin.
The emergence of this digital currency gave us a new way to move money quickly and with less hassle. We already mentioned earlier how casino players use it to quickly transfer money to their accounts but it cannot be stressed enough how fast Bitcoin transactions are. They take place almost instantly, which is critical for traders and investors.
Not only this, but Bitcoin is incredibly transportable. Assets such as gold may be easy to sell, but the same doesn’t go for storing and transporting them. Bitcoin, on the other hand, can be transferred from one user to another in just a few clicks. Combine this with near-instant transactions and it’s easy to understand the power Bitcoin holds.
Again, the decentralized structure also means that those who want to buy or sell it don’t have to worry about being locked in or out of their financial jurisdiction. Even when in a country that has a negative stance towards cryptocurrencies, they can still access their stash and use Bitcoin with ease.
Inclusive Financial System
Another way Bitcoin is changing finance for the better is that it’s creating a more inclusive financial system everyone can benefit from. From an average citizen to a Bitcoin whale, anyone can now own Bitcoin as long as the legal status in their jurisdiction allows it.
This opens up new opportunities to those who are unbanked, which according to the data from 2023 is almost 1.5 billion people. Using Bitcoin, they can now access financial services that were previously unavailable to them. It eliminates the hassles that are commonly associated with having a bank account and the need to worry about hefty banking fees.
This has led to people in developing countries, making a shift towards Bitcoin, marking a significant change in global finance. While some may view Bitcoin as an investment opportunity, lower-income demographics use it as a hedge against inflation.
In the early days of Bitcoin, the philosophy behind it was indeed to bank the unbanked. This message was lost to some extent due to its burst on the financial scene and the role it has in the world of investment. However, Bitcoin has found its way into emerging markets, bringing financial services to absolutely everyone.