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Can Bitcoin Change the Future of Our Financial Systems for The Better?
What do you think of the future possibility of the current financial system? Will it remain the same? Or will any other currency catalyse the formation of a new financial ecosystem?
Every answer that you want is hidden in the cryptocurrency and blockchain technology. These two technologies hold the possibility to answer the above questions.
The concept of centralized digital currency is clear among the people. This has allowed people not to carry any cash with them all the time. You can even see this in practical life, today, most millennials use their smartphones with the application to pay any bills directly from their banks.
Hence, it is very much possible that in the future, people will adapt to the cryptocurrency and pay their bills with peer-to-peer cryptocurrency transactions via bitcoin up platforms.
How Can Bitcoin Change the Future Of The Financial System?
The financial currency system has been running for thousands of years, and it is high time that it needs to change to suit current needs and demands. The world is in the process of digitization, where everything will be controlled digitally. Hence, having a financial system that has the use of physical currency will look out of place.
This is the reason why people are looking for a digital solution. In search of a digital solution, people have come across Bitcoin that fits perfectly in their grooves.
Here is how Bitcoin can change the future of our financial system.
1. Accessing capital
Bitcoin provides security to the investment you are making into new start-ups and businesses. It also encourages new investors.
Investing in any startup can be very risky as they might just take your money and run away. However, this will not happen with the Initial coin offering (ICOs). In the ICOs, you have the keys that safeguard your investment. So, in case of any fraudulent activity, you will be able to keep your invested capital safe and secure.
2. Reduced processing fees
We all know that bank transfer takes time as this transaction needs the approval of several intermediaries’ parties. In a process like this, people and employees are involved. Hence, transaction fees are asked to maintain the services.
However, with the Bitcoins and blockchain technology, you can transact over peer to peer connection and can transfer money directly to the person. In this method, no third-party institutions are involved. Hence, lowering the transaction fees to the minimum.
3. Secure transactions
Another thing that the blockchain technology ensures is that your transactions are anonymous and protected with two-factor authentication. In the crypto transaction, fraudulent activities are less likely to happen because all the transactions are tracked and irreversible.
This technology can help people to have more direct transactions to stop the possibility of being scammed. Even if it happens, you will be able to track their traces.
4. Remittance transparency
Another aspect of the crypto transactions is that they can provide transparency to the remittance, ensuring that people are not paying more than they need to. There are many remittance workers who send money back to their home with the banking facilities and are forced to pay the premium transaction fees due to a lack of transaction options.
However, with the Bitcoin transaction in the frame, people will have options for transparent transactions. This way, they will be able to see what they are paying for.
5. Spending on utilities
The Retail market is the least crypto influenced market. Currently, the retail market is dominated by credit cards and e-wallets. However, bitcoin has started to get a hold of the retail market with the Bitcoin ATMs.
This process is just in the initial stage, but you will find some restaurants, hotels, and shopping malls with bitcoin ATMs. These ATMs can be used to dispense cash or pay your bills.
All in all, if you see Bitcoin and Blockchain has great potential to bring change in the world. The only problem is its regulation. There are people who do not trust the existence of bitcoin and Cryptocurrencies. Once this barrier is breached, then Bitcoin will be an unstoppable force in the new financial system.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes