Is Bitcoin transforming the way we buy things?
Digital currency is quickly becoming the means by which many consumers already are starting to choose to conduct transactions.
Prompt payments can be made anywhere in the world without having to consult your bank beforehand. It can make it easier to make emergency payments at any time of the day and on weekends when banks are closed.
Bitcoin
Bitcoin is one of the more well-known digital currency services that are available online, allowing customers to transfer payments instantaneously. Created in 2008, it uses peer-to-peer technology with no need for any intermediary financial institutions to handle the money transactions for you. Payments and transfers can be made from any computer or device that has access to the Internet, including smartphones and tablets. Customer service for the use of Bitcoin can be provided at the customer’s convenience, should any problems arise.
The Advantages of Bitcoin
Bitcoin has become popular through the means by which customers can send money to each other from any location to any international country. Bitcoin has developed a reputation for being quite secure and reliable when it comes to transactions. Bitcoin is a cryptocurrency and is recorded on a decentralised network that is kept secure through public-private key cryptography. The control is kept in the hands of the consumers themselves, not by a central authoritative company. Money becomes available rather quickly after transfers have been made, and is much more cost-effective than other means of transferring money. Bitcoin has also been accepted in almost all countries of the world, making it easy for anyone to use. The Bitcoin currency isn’t only available online, either; it can be used to make transactions at convenience stores, for groceries, pay bills, rent, or even credit cards.
The Challenges
Despite the freedom that comes with the use of Bitcoin and digital currency, many customers are worried about the lack of any central control over the digital economy. Deflation of the currency’s value is a constant threat that could take place at any time, and there is no means of intervention to prevent the problem from getting any worse. There is also the taxation standpoint when it comes to digital currency; many customers may rely on Bitcoin as a means of income, but there is no legal framework to deal with digital money in a way that doesn’t physically cross any borders. This opens up the realm of services like Bitcoin being used for money laundering operations. The concept of Bitcoin is too ambiguous for any centralised authority to regulate or adopt as a credible system of payment.
It’s unlikely that digital currency will ever become part of the mainstream economy, but with the increased attention it’s been getting over the years, it’s likely that more and more businesses may use it in the future.
Watch this space!
