Bitcoin has shown resilience since the doomsday calls of 2018 that saw it fall from its all-time high to a yearly low of $3,200 on the eve of Dec 16, 2018. Despite the ups and downs of the past year, the utility of bitcoin as a measure of value has persisted.
As a digital payment solution, anyone can store and transfer bitcoin to other recipients around the globe at the touch of a button. Studies have revealed, usage and adoption rank high among the younger segment of the global population.
With people around the world able to use Bitcoin as they want, the primal aim of its innovators is getting fulfilled. The preference for a fast, nimble lifestyle and self-assertion is an added fillip for Bitcoin adoption in a generation that witnessed the rise of the Internet.
As global realities and current trends around the world come to the center-stage on social media, practices that were once acceptable are coming under scrutiny. The tech-savvy and in-touch generation realizes that bureaucracies and centralization pose a limitation to self-expression. Hence, the rise of Bitcoin as a payment disruptor is largely aligned with its right of use.
There is perhaps no better way to express the above sentiments than this tweet by WhalePanda:
Beating SWIFT to the Game
The rise of cryptocurrency has shown that no one must be beholden to SWIFT (Society for Worldwide Interbank Financial Telecommunication) and its poor processing times. While BTC can be sent to anyone anywhere in a matter of minutes, SWIFT takes one to three days to effect global transfers.
The Bitcoin-literate around the world already know that SWIFT can be bypassed, and this is playing out daily. In comparing the freedom and pace of Bitcoin to SWIFT, no one would prefer to lose sleep over the negative press surrounding it. In a sense, that is why the recent publication attributed to the bank of International Settlements drew flak from Bitcoin lovers.
With Bitcoin commanding up to $5 billion in daily transactions this week, many people see its utility as a defining means of value transfer.
No Central Bank Pulling the Strings
Around the world, Central Banks are always in charge of regulation and the control of money in circulation. In the case of Bitcoin, there is no authority to checkmate the quantity of Bitcoin in circulation. Hence, it is decentralized. This has given users and investors the opportunity to explore the market (mostly) without interference from the government or regulatory commissions.
Whereas there is always a limited amount of money that can be sent or saved via the traditional banking system, a Bitcoin digital payment system is a better option as it permits users to transfer and save with no usage cap.
Shielded from Monetary Policies
Bitcoin, as propounded in Satoshi’s thesis, arose out of discontent with the global economic system. Traditional monetary policy determines the quantum of money supply and sometimes, this ruins business initiatives. With Bitcoin, the supply is known and users will not be taken by surprise overnight with a disruptive central government proclamation.
Flowing from the above, a huge mass of Bitcoin users use it as an asymmetric investment option that is shielded from the centralized authorities.
Bitcoin has a lower inflation risk in the money market compared to local currencies. Traditional currencies are controlled by the government and this sometimes leads to fluctuations in the value of such currencies. This is because the government keeps printing more money, and when the value of money dips, its market demand becomes low.
On the reverse, despite the fact that bitcoin is subject to the forces of demand and supply, it opens a door to value appreciation. Keeping your wealth in fiat currency can never give you up to one percent appreciation in the vault of your bank.
Bitcoin as a digital currency is not physical and this means that you do not have the burden of carrying it around. With your wearable device, mobile phone or laptop, you can easily transfer and make payment with it as the need arises. The right and ease of use are among the towering benefits of the rise of Bitcoin.
What other benefits do you see in the rise of Bitcoin? Tell us your thoughts in the comments below!