Bitcoin has a tremendous potential to drive economic growth and development. Find out how Bitcoin helps the economy.
Bitcoin's reputation has steadily grown from a speculative asset into a viable means of payment and investment instrument recognized worldwide. It is the most prominent cryptocurrency, facilitating seamless, secure, and low-cost cross-border payments. Bitcoin has demonstrated a unique potential to withstand inflation since its inception in 2009, attracting institutional investors from all over the world.
Several leading corporations have invested vast sums of money in Bitcoin to safeguard their assets from inflationary risks. The Bitcoin revolution has quickly proliferated into various global economic sectors, including finance, real estate, healthcare, manufacturing, travel, e-commerce, and retail. So, how does Bitcoin fuel economic growth? The following article explores how Bitcoin drives the global economy.
Increased Economic Activities
Bitcoin has inspired an entire global industry of cryptocurrencies, driving innovation in different economic sectors. There were more than 2000 cryptocurrencies in the market as of 2020, inspired by Bitcoin's growth. Bitcoin has paved the way for robust innovations, with various products and services built around it. The rapid growth of the crypto industry proves the lucrative business opportunities that Bitcoin has created for institutions, businesses, investors, and innovators.
Bitcoin has enabled many businesses and individuals to flourish through trading and other investments. Crypto trading is one of the most popular ways for most people to make money with Bitcoin. It works similarly to stock trading but, traders buy and sell crypto for profits. Reputable crypto exchanges have dedicated mobile apps and features. Thus, even novices can use platforms like https://bitcoinsmarter.org/ to trade Bitcoin.
Apart from trading, you can also make good money with Bitcoin through mining, affiliate marketing, and accepting it as payment in your store. Companies and individuals can leverage those opportunities to generate incomes, driving global economic growth.
Enhanced Financial Inclusion
The traditional financial systems remain under the tight grip of governments and regulatory institutions. They are subjected to various regulations and laws, hindering the accessibility to financial services in some parts of the world. For instance, companies and individuals must go through the banks and money processors to send or receive money. However, almost a third of the global population still lacks essential banking services.
This makes it extremely difficult for many people to access capital or even do businesses with the rest of the world. In areas with access to banking services, the institutions are often biased, favoring the few wealthy and elites. They also offer very high-interest rates, impacting more instability among the already financially disadvantaged populations.
Bitcoin offers the best solution to such limitations because it is a decentralized currency, not subjected to political or institutional influences. Thus, it enables users to send and receive money across international borders without external intervention. Unlike the traditional financial systems that use third parties to process cross-border money transfers, Bitcoin payments occur on a peer-to-peer blockchain network, without an intermediary.
Bitcoin users don't have to open bank accounts or go through money processors to transact. Instead, anyone can join the network via a smartphone and an internet connection. Many apps and programs now exist, bringing cryptocurrencies closer to the public and facilitating their usage. Bitcoin has made it easier to access capital and invest worldwide without external interference.
Low-cost Money Transfers
Bitcoin is a virtual currency and asset that does not need actual brick-and-mortar buildings to operate. Besides, its transactions do not involve third parties, impacting relatively lower fees than credit cards, debit cards, and ordinary bank transfers. That offsets the financial burden of international remittances and attracts foreign investments.
Bitcoin is already integrated into various aspects of the global economy, although it is still in infancy. The increasing adoption proves its unique ability to fuel growth in multiple economic sectors worldwide.
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