Even a person with little interest in finance or technology would know about Bitcoin. It is a cryptocurrency that was created in 2009. It marked the beginning of the decentralized network for exchange that could potentially put the financial power into the ordinary people’s hands by taking it away from the banks and government agencies. Bitcoin is one of the cryptos that changed the way people used their funds. Blockchain technology the brain behind Bitcoin created a public ledger of transactions and a nearly instantaneous exchange of money anywhere in the world. Since the year 2017, Bitcoin price in India has seen consistent growth and has transformed the world. Here are some of the ways Bitcoin is changing the world.
Revolutionary change in the global financial systems
Historically, banks and financial institutions have had control over the financial world. In 2009, this control started to weaken when the blockchain was created. It helped people transact and do business through their protected networks without the need for banks. Blockchain technology and Bitcoin created works where buyers and producers could exchange goods in a decentralized manner.
Traditionally every participant in a transaction has their system of recording. This was prone to errors as validations and checks were done manually making it inefficient and complex. It could also lead to fraud as it was dependent on individuals. On the other hand, blockchain technology reduces complexities, boosts efficiency, and reduces fraud. That is because the electronic ledger for transactions is recorded and shared. The rules are set by the users and agreed upon. Once it is recorded it cannot tamper. It can be thought of as the common version of the truth.
Anti-fraud mechanism
There are myriad uses of it in the financial world and one of the important ones is the anti-fraud mechanism. Cryptography and mathematics are used to build applications. This helps to create a hash every time some transaction is made and it complies with the rules. The hash can represent anything; it can be a transaction of monetary value and addition of a document by an organic store on consignments, or the receipts added by an NGO to show how the funds were utilized, etc. Since no hash can be added or created unless it conforms to the agreed rules, it will be rejected, and depending on the platform the fraudster is punished. So it is not just the financial world that gets benefits, even the other industries can benefit from it.
Buy anything using Bitcoin
Companies like Dell, Expedia, Overstock, Microsoft to name a few are accepting Bitcoin payments. Also, the number of merchants that accept payments as Bitcoin is increasing by the day with users being able to purchase anything using it. Moreover, Bitcoin ATMs are also increasing which adds more value. Bitcoin investments by venture capitalists have also increased and that has helped create a significant amount of capital bringing great returns. These are indications that Bitcoin’s value is bright as it is essentially a combination of technology and finance.
Also, the fact that it is free of interference from the government makes it more attractive to users. Also, it uses blockchain technology that is fast, effective, and secure. These features make it a leader in the financial system globally.
Bitcoin has transformed the world and will continue to change. With it passing the test of time, buy Bitcoin and make use of the popularity and the increasing value.
