How Does Bitcoin Help Society?
Bitcoin is an electronic asset created by Satoshi Nakamoto to respond to the 2008/2009 financial crisis and as an alternative to fiat currencies. When this virtual currency was introduced to the public by Nakamoto, not a lot of people thought that it could last longer. However, in the thirteen years this virtual currency has been around, it has bypassed many barriers, including government bans, and succeeded. Start your trading career at bitiq.org.
Earlier on, people regarded this virtual currency as an asset class. But today, this digital money is causing waves across all parts of society, from the wealthy to the poor. There is rapid adoption of this virtual money across multiple economic sectors. Currently, this virtual currency is one of the leading cryptocurrencies that has paved the way for the creation of thousands of Altcoins.
Despite this electronic currency suffering from high volatility, its benefits outweigh the potential risks. Here are some of the main ways that this virtual asset benefits society.
Sparking Innovation
This digital money is one of the greatest innovations to be created. Satoshi created a decentralized currency, meaning no government or financial institution could manipulate or regulate the funds. This digital asset has an inbuilt infrastructure known as the blockchain. This blockchain is a public distributed ledger that records and helps verify transactions. Due to blockchain technology, Bitcoin transactions are fast and less costly.
Moreover, this virtual currency currently has more than 109 million users, and no innovation has had such drastic growth within a short period. Blockchain has positively impacted several businesses, including real estate, banking, and tourism. Through blockchain, the real estate industry and accountants can better manage accounts.
This virtual currency is also creating innovation through the development of apps. Many apps and software are coming up to support this electronic currency. There are numerous apps that one could utilize to help them to trade this virtual asset. Exchanges are also coming up to help people buy, sell or trade this digital money.
Financial Inclusion
Traditional financial institutions are centralized and mainly involve banks, and for a long time, banks have been the sole custodians of financial transactions. On the other hand, people in underdeveloped countries lack access to basic banking facilities. Banks are often considered places for the wealthy. While creating one is requested to provide a lot of personal information that could be crucial. Therefore, people in underdeveloped countries cannot transact with the rest of the world, especially when conducting business.
On the contrary, this electronic currency is a better solution for the unbanked population as banks are unnecessary when transacting. Instead, anyone can join this digital currency network with a smartphone and access some network. Also, some exchanges like the Bitcoin system help people purchase or sell their cryptocurrency without an intermediary. Nevertheless, even people with minimum access to banks can conduct cross-border transactions with this virtual currency.
This digital money is straightforward and highly accessible, promoting financial inclusion. Capital can easily flow across international borders, driving growth and economic development.
Creation of Economic Opportunities
This virtual currency has inspired several business opportunities in multiple global sectors. For instance, this virtual currency has inspired the whole crypto industry. This virtual currency has created many cryptos, including Litecoin and Ethereum.
Moreover, there are many ways people can make money with this digital money, including mining, trading, staking, and lending.
The Takeaway
Despite being highly volatile, this digital currency presents many benefits to society, as listed above. Therefore, you cannot deny that this digital money positively impacts the community. This digital currency helps build trust among people due to the transparency of the network.