Have you been thinking of learning more about Bitcoin and Cryptocurrencies in general? Have you been impressed by a friend making incredible profits? Maybe the Coronavirus emergency and US Federal Reserve's irresponsible (but expected) response to the global economic crisis has gotten you to finally pay attention.
Bitcoin was brought about in response to the Asian financial crisis in 2008 and the subsequent monetary easing that came as a result. Cryptocurrency exists uniquely because of the painful, but oh-so-easily forgotten lessons of past cycles of currency devaluations and the resulting economic depressions marked by hyperinflation.
If the thought of the government effectively adding 50% to the money supply overnight and their indication that they will continue printing without any really rules or restraint concerns you, you are paying attention. Now imagine that the one thing that gives value to a dirty piece of paper suddenly loses its ability to create value.
The government's ability to tax its citizens and corporations in a properly-functioning economic system is critical to the sustainability of the USD or Euro backed by nothing more than than the enduring belief that the paper being printed by our central banks will always demand a significant value as long as there is strong, stable, and long-term economic output that the government can confiscate for the common good, thereby validating the fairytale that is fiat money which allowed the huddled masses a small degree of reassurance and thereby proves the undeniable logic of how money backed by nothing is superior to all other forms.
This is the exact scenario playing out before us while at the same time the economy has come to a screeching halt in less than a week. This isn't a micro disruption - these events will negatively affect, if not outright destroy the entire economic engine of the world and is a fundamental breakdown of all the thoughtful rules and systems put into place to convince everyone of the absolute absurdity of keeping our money inextricably linked to something of intrinsic and undeniable value.
The entire economic ecosystem of the world has just been fundamentally shaken. Economists used to fret over GDP growth that could be .25 or .5 basis points worse than expected - how do things start to look when GDP across the board CONTRACTS by 25-30% in Q2, again in Q3, (who cares at this point what happens in Q4 because we have just chopped the global GDP by more than 50-60%) and then the government implements a policy of unlimited Quantitive Easing and begins the process of printing fake money indefinitely and without even acknowledging the risk that this may render the USD - America's most effective tool for influencing the global changes we desire, absolutely worthless.
I won't go further and question how the US government plans to pay interest on over $25 Trillion in debt (7% of which is held by foreign governments like China) while the countries economic engine has been ravaged which will reduce taxes inflows to Treasury by 50-75%. And this is after they have already printed $7 trillion just to 'prop up' the economy.
How does the one global superpower cover sovereign debt payments when revenues into Treasury are off 50 or more % on a dollar that will have just hit stride in the process of devaluation.
(That may have gotten excessive in my vicious rejection of these disturbing policies that starting now will begin to reshape the world order on so many levels and change the life experience of everyone on this planet)
That entire prelude was meant to be a shock so that hopefully you can be receptive to what you come to learn about Cryptocurrencies, and Bitcoin in particular. It may be difficult for many of you to conceptualize or even absorb the gravity of these changes that are beginning to happen around us. Just think about how perfect money would look or act considering what is happening with the global fiat currencies.
What 4 properties would money need to possess in order to be perfect?
And for me, the last property would be a fixed and transparent supply - this is the only way you can ever rest easy that the government isn't going to come in a steal the money you worked your entire life to earn by printing it into oblivion.
Whatever your situation, now is time to learn more about why you should be using Bitcoin. Why? Just take a look at the following statistic from Bitcoin Orakle:
There are an estimated 18,000 people who have become Bitcoin millionaires, and with the right strategy, there is no reason that you can't also make significant profits.
Bitcoin is becoming popular worldwide and is now widely accepted by many stores and businesses. It also has the added advantage of not needing to use banks, cash, or credit cards for shopping or transferring currency.
These are, of course, but a few advantages of using bitcoin. In this article, we’ll be covering many more.
Bitcoin is a virtual currency that began in 2009. It started slowly and has grown to be widely accepted. It is now legal in most of the world and is known as a third type of currency after fiat and commodity currencies.
Bitcoin is genuinely an international process. An international transfer is no different than sending currency to a friend in the next town. All you need is the Bitcoin address of the person you wish to make a transfer to - there is no need to worry about any currency conversions.
Moreover, there are no banks in the way to delay your payment since a Bitcoin transfer is usually completed in minutes), and there is no restriction on a minimum or maximum amount to transfer.
There are no international fees to pay (just the standard transaction charge for every payment). There is zero red tape to deal with as you would experience with using a credit or debit card, international money transfer, or ATM card withdrawal.
There are similar advantages to other cryptocurrencies, but Bitcoin is by far the most known and accepted worldwide. You can find more info here about the countries which currently offer Bitcoin services.
Bitcoin is by far the most popular cryptocurrency and has better liquidity than other options. This is significant as it allows Bitcoin to keep most of its value when being converted into U.S Dollars or other currencies.
Other cryptocurrencies suffer from losing significant value when being exchanged and are not able to be easily exchanged for fiat currencies. This also makes Bitcoin more similar to fiat currencies than other cryptocurrencies.
Using credit cards, Skrill or PayPal is often a far more expensive option than Bitcoin for digital payments. Bitcoin transactions usually cost less than 1% of the total transfer, with other types of digital transfer often being 2 to 3% or even higher.
There are no intermediaries or third parties involved with Bitcoin transactions, which means quick transfers and lower fees. This fact alone makes Bitcoin attractive to small business owners.
There are now hundreds of merchants worldwide who accept Bitcoins. It has come a long way since Laszlo Hanyecz spent 10,000 Bitcoins (US $64 million in today's value) on ordering two pizzas back in 2010.
There are currently over 15,000 businesses worldwide who accept Bitcoin, and it is now possible to buy just about any physical item through overstock.
The fact that Bitcoin is becoming more accepted by mainstream businesses is good news if you wish to reduce your reliance on regular currencies such as the US dollar and others.
If the trend continues, it will not be long before Bitcoin is accepted virtually everywhere.
One of the first things that Bitcoin was known for was that it was an anonymous way of sending money. Much of its initial appeal was born from that, and it is still mostly true today.
Regulations have indeed been brought in to provide more stringent protection when using Bitcoin. However, the currency still allows greater privacy and anonymity compared to conventional ways of paying for things.
If you use dollars or other currencies in an online bank account, or PayPal, there is very little privacy, and it is not that different than handing over cash in person. The point is the person who receives your money will know your identity.
Although online transactions such as those available now are safe, your identity will not be hidden from the authorities or the merchants that you deal with. Bitcoin offers an entirely different proposition. It has built-in protective measures for your privacy, which means you can send Bitcoin anonymously and withhold your identity if you so choose.
Authorities can also track Bitcoin transactions between users, but they will struggle to identify the people involved. The Bitcoin address you use for a transaction is anonymous, and it can be changed for every transaction that you make.
You can feel confident when making Bitcoin transactions as they are secure. Nobody can access your account like with a bank account and make extra charges or make a payment without your authorisation.
As long as you take the recommended steps to secure your account, Bitcoin will offer reliable protection against fraud and proper control over your money.
With Bitcoin, people can make payments without revealing their personal details or any financial information. This is ideal for people who have doubts about the safety of making purchases online.
Using Bitcoin can be compared to using digital cash. It’s difficult for any Bitcoin transaction to be hacked as the transaction is carried out on a decentralized platform that provides a great deal of security and anonymity.
As Bitcoin transactions are anonymous, a third party has no way of tracking a purchase. It will be unknown who made the purchase, which means there is no practical way to form a system for Bitcoin taxation.
It means it is up to the buyer to decide whether or not declaring a purchase for taxation is necessary. The only way to pay tax on the transaction would be to voluntarily send a percentage of the transaction amount to the tax authorities.
It is simple to carry out a Bitcoin transaction. Any person of any age, from any country, can carry out a Bitcoin transaction as long as they have access to the internet.
All you need to do is download a Bitcoin wallet and generate a Bitcoin address to carry out transactions online. You will not need to supply Passport details, ID cards, or proof of address to send or receive Bitcoins.
Personal details may be required when signing up for a Bitcoin wallet depending on the platform you use and the KYC (Know Your Customer) laws in your area.
Please look here for more info on how Bitcoin transactions work.
Many small merchants or online sellers have issues with payments being reversed when made with a credit card, PayPal, or bank. If the product has already been dispatched to the customer, it is a long, complicated process to challenge the reversal of payment with no guarantee of success.
However, Bitcoin payments are different and are completely secure for the seller. The payment is entirely irreversible. There is no way for the payment to be reversed unless the seller decides to send it back himself.
Bitcoin is not controlled by any state entity. It is not overseen by a central bank and is separate from political influence.
This makes it far harder (although not impossible) for a government to seize or freeze an account, which could be useful depending on your location. You will not need to fear political retribution for your beliefs or as part of an unfair criminal investigation, for example.
Bitcoin is also completely decentralized and has a wide range of people that own it. One recent estimate estimates that it is likely there are over 100 million owners of Bitcoin. It also means that its creators do not overly influence the currency.
With other cryptocurrencies, most of the units are held in a few accounts. This can have a negative impact as it allows the creators to manipulate supply and even the value.
Bitcoin opens a useful international market for small business owners. They often fail to sell their expertise, services or products internationally due to high priced, slow, and complicated cross-border transactions.
Bitcoin payments are almost instant, cheap, safer, and more accessible than other forms of currency. They open a wide range of new opportunities for a small business.
Bitcoins are limited in number, with the last of 21 million due to be mined sometime around 2040. This scarcity gives this currency characteristics similar to gold and related precious metals.
Many traditional currencies that are government-controlled are not scarce, and new currency can be created at any time. You will often see this at times of a global financial crisis. It can risk inflation, which can make economists fear the worst and deem the long-term effects unclear.
Using Bitcoins means there are zero risks of inflation. The finite amount of coins means there is no risk of excess currency being issued. It is an advantage for both buyers and sellers of Bitcoin.
If you are a world traveller, you can take your Bitcoin account with you. You will not need to get permission or confer with local banks to use it.
You can simply store your Bitcoin Wallet on a memory stick and convert your Bitcoin to whichever currency you wish. There is an increasing number of anonymous Bitcoin ATMs throughout the world, which will give you easy access if you need to convert your Bitcoins into cash.
These are just some of the various well-known factors that demonstrate the benefits of using Bitcoin. There are several other lesser-known ways Bitcoin can be an advantage.
Let’s take a look at a few.
Bitcoin can be applied to several business verticals. The targeted niche of these can mean a small customer base, but each potential client is likely to be interested. The following are examples of this:
Technology for Wallet Building
Bitcoin wallets have been around since the founding of Bitcoin in 2009, but it is an evolving technology, and there are always more sophisticated virtual wallets being created. People will always be attracted to new and better ways to store, trade, sell, and receive their cryptocurrency.
Wallets are becoming more advanced, and there are business opportunities focused solely on wallet building. Bitcoin has allowed these wallet technologies to flourish.
The Bitcoin network has grown in strength and now allows Bitcoin to be thought of as a new type of asset class. It can be used as an asset to back the value of anything.
Companies can raise finance using Bitcoin asset distribution without having to pay professional bankers and the huge fees they charge.
Nick Szabo developed the idea of smart contracts in the '90s. The concept was to use a programmable agreement without the need to use a third party.
This concept has yet to be used effectively yet, but the emergence of cryptocurrency makes the process possible using Bitcoins as they are today.
There is an excellent opportunity for a business that can perfect this and market it.
Sadly, the Covid-19 pandemic is closing down borders, businesses, and public spaces all over the world. There are new restrictions on movement and social gatherings being announced every day.
As of now, banking and money transfer institutions are mostly unaffected, but that might change. It is likely to become more challenging to visit a bank, and currency restrictions could be implemented at any time.
Bitcoin has proven to be an effective way to transfer money, either locally or internationally. Payments can be easily made at a low cost, and they are almost instant.
Compare this to bank transfers or money transfer businesses. How long will they have sufficient staff or even permission to remain open?
With Bitcoin, you can quickly send currency to a relative on the other side of the world. It is a simple process, and they can save it as bitcoin or cash it out to local currency or to their local bank account quite easily.
This method avoids using a bank for the transfer, saving considerable time. Right now, an international bank transfer can take up to a week. Can you imagine how long that could become in the case of the coronavirus situation becoming worse?
A peer-to-peer transfer using Bitcoin clearly has advantages over traditional fiat currencies.
Bitcoin ATMs are also incredibly useful in this case. You can transfer Bitcoin to yourself or a friend, and it can be cashed out anonymously at over 7,000 Bitcoin ATMs around the world.
Bitcoin ATMs can also be used to send traditional fiat currencies. The process is quick and straightforward. You can buy Bitcoin at your local Bitcoin ATM and easily send it to a loved one in need of funds on the other side of the world.
They can then receive your Bitcoins and convert them into local currency at their nearest Bitcoin ATM. It is a quick, economical, and practical way to send money at times of crisis.
Using this method to transfer money overseas is a safe option. It has high security but also avoids the need to visit a crowded bank or queue up outside them.
In this article, we have looked at the tremendous opportunities provided by choosing to use Bitcoin over traditional currency and also the practical reasons for doing so. Aside from many people getting rich through Bitcoin investments, it still remains an economical and safe way to store your currency - even after the rises and falls in value that Bitcoin’s recent years have seen.
Since its foundation in 2009 by the shadowy figure (or persons?) known as Satoshi Nakamoto, Bitcoin has risen from nothing more than a good idea to being widely accepted around the world and a viable way to transfer money.
International transactions are straightforward and economical, and the emergence of Bitcoin ATMs in over 7,000 locations means it is easier than ever to turn Bitcoin into local currency. It is also an effortless currency for travellers to use in practically any country across the globe.
There is also the fact that Bitcoin is not controlled by any state entity, so it is free from political involvement and being overly regulated. There are estimated to be over 100 million users of Bitcoin worldwide, which is a testament to its increased popularity.
The speed of transfers, lack of red tape and regulations, and fair transfer price mean that using Bitcoin is a practical way to transfer money to your loved ones and clients in the age of the Coronavirus pandemic.
The future looks bright for Bitcoin, and it seems only to be a matter of time when it is thought of as being on a similar level to fiat currencies and gold.