When the world was actually flustering about the financial crunch, in 2008, a computer techie -Satoshi Nakamoto, devised an alternative currency. He programmed a currency, Bitcoin, that is now becoming a famous alternative currency around the world. He suggested that though Bitcoin may not be the primary global currency but it will definitely provide many unique features for everyone who uses it.
Dominic Frisby in his book Bitcoin- the future of money?, explains how Bitcoin works and how it would transfigure the world very soon. What internet did to publishing and what email did to the postal service, Bitcoin will do to finance and banking: create newer possibilities for the people, eradicate old monopolies.
Blockchain- the technology on which Bitcoin works, has already digitalised the Western world, giving them the shakedown they were urging for, inspiring enthusiasts- computer coders, economists, speculators, anarchists, entrepreneurs, criminals and libertarians. This currency is almost incognito and can be traded anywhere around the globe without any government intervention, charges and banks' demand of paper currency. Like everything though, it has its pros and cons. It is risky because with time its value fluctuates. Jose Pagliery talked a couple of years back about Bitcoin and its future at Bitcoin Center NY - about how it works and most importantly why it matters.
Bitcoin is a peer-to-peer currency. It's your and my money. The governments have no control over this, they don't inflate its value and also don't endorse it too. No worries about currency debasement. Now the money can be traded digitally unlike the earlier scenario where there was always local currency needed for any sort of work. Bitcoin has given the liberty to the common mass for controlling their money. This way monetary power is now totally in your hands. This cryptocurrency would gain value with popularity and usage among masses. So basically, people who do not have a bank account, currency or credit have an advantage with Bitcoin now.
Unlike other businesses who charge a lot of transfer money depending upon the amount and location to where it has to be sent, Bitcoin does it for mere pennies irrespective of how much and where it has to be sent. The Western Union, a highly trusted and reputable name in this regard, makes billions of dollars each year, charging upto 12-15% in fees because they don't have any such competition in many parts of the world - yet.
Bitcoin is simpler and faster. Think of transferring $ 5000 USD from one corner of the world to other. Going out to bank, meeting personnel, paying fees, getting approved and then transferring would take your entire day. On the other hand, Bitcoin does it in seconds. Isn't it enthralling?
While making a Bitcoin transaction, you aren’t really posting your personal information. But with credit and debit cards, once you swipe your card, your complete account details, name, address, balance and national ID number are all shared with a third-party and many more people connected to your transaction on its way. In U.S, about 5% people have been the victims of identity theft. Hackers gain access to your personal information and there is no way out to stop them because every system has some loopholes. Bitcoin helps here. It would never attach user information to any financial transactions.
A bitcoin has immense capability to send information with secure encryption. Digital files, pdfs or combinations can be sent in complete security. Also, Bitcoin would replace any paperwork as it is a digital ledger. The Blockchain is something that Bitcoin works on and all the transactions can easily be tracked through it. This cutting-edge technology helps keep records and files in ways better than ever before.
This is just a little list of how Bitcoin and Blockchain are going to shape the future of money and even the way we conduct businesses. And while there are cons too but they far outweigh the pros of Blockchain and Bitcoin. The technology is amazing, secure, advanced and very convenient. Now it waits to be seen how long it will be before this cryptocurrency goes mainstream.
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