Bitcoin is the new-age virtual currency here to disrupt the economic ecosystem surviving on the physical concepts of money, shares, and stocks. While the widespread impact of this feat is being felt by the economists around the globe, its usage is still restricted to the few of the rigorous players of Wall Street. The idea of Bitcoin as a world currency is slowly being given a closer look, and we must accept that the impact on the daily lives people are going to be huge.
Currency without Autonomy:
Currency is still controlled and regulated by the governments of different nations. Most countries have a Central Bank which does the work of issuing the currency, managing liquidity and also lending rates by the banks. Bitcoin, being unorthodox and virtual, is entirely out of the Banking system. Bitcoin is not controlled by a single person, and hence, no one has an Autonomy over it. Decentralization of the autonomy over money would reduce the politicization of National Currency.
Low Cost transaction and Ease:
Bitcoin transactions relatively cost-effective and people friendly in comparison to the international bank transfers. Sending money abroad done without the hassles of the banking system and its regulations. Bitcoin enables ease of transactions like any other electronic payments since no part of the transaction is made in the physical form of currency. Exchange rates using Bitcoin is one of incredible ease and low cost. Bitcoin does not care about the user logistics. The network does not care where the payer or receiver of a bitcoin transaction is physically present. It bears no effect on the speed of transaction verification nor the cost. This allows users across the globe to transact quickly with low or even no cost.
Investments in Bitcoin has seen a steep rise in the recent years with value of Bitcoin reaching new heights. In comparison to the meagre returns on the savings account in a back, investments in Bitcoin can yield value exponentially. Economist predict that the value of Bitcoin is bound to rise continuously in the coming years.
Access to everyone:
Individuals who have access to mobile phones but limited access to the formal banking system and utilize the Bitcoin option. The traditional exchange system with its complexities will be relinquished as redundant with a larger access to Bitcoin, enabling people to transact with ease. Setting up a bank account, particularly as a business, is often difficult and riddled by the complexities of bureaucracy. If you do have a bank account, you are then bound by rules and limitations. Kenya’s M-PESA system, a mobile phone-based money transfer and micro-financing service recently announced a bitcoin device, with one in three Kenyans now owning a bitcoin wallet.
Parallel economies and New Markets:
The economic or monetary policy will no longer rest in the hands of a few. Bitcoin cannot be created or devalued as it is done in the case of National currencies. Therefore, it is immune to inflation and monetary policy decisions of the governments. Bitcoin will enable micro-financing without the intervention of the conventional rules and regulations. New markets are emerging leveraging the Bitcoin technology and its implication on the everyday lives of the people.