The impacts of cryptocurrency when adopted as a formal method of payment
The question about the effects cryptocurrency will have i made a widely acceptable form of payments I'm the globe leads to very speculative answers, there have been positive and negative answers to this question but to understand this concept, it is important to know the journey of the first cryptocurrency (Bitcoin) before it became an alternative option for payment. Viewing this coin, it's becoming similar to our normal fiat currency. However, the difference between Bitcoin and fiat currency is that Bitcoin is not dispensable by banks and some businesses but there are some establishments thag supports it's function in a non formal way.
The value of Bitcoin is becoming more predictable as it becomes popular and many people use the coin tl exchange for different coins and even commodities in some exchanges.
The originator of Bitcoin is allegedly Satoshi Nakamotoin 2007 and the popularity of Bitcoin has been due to the transactions it was used for and request for it. However, the formal journey of Bitcoin as an option of payment started in 2008 when three people decided to a route that will guard the encryption that have been developed by them.. these three person's are Charles Bry, Neal kin, and Vladimir Oksman,
These three person's registered a domain which they intend to use and help the coin to serve as an alternative way of payment. This domain was register on a site, and it was programmed to allow registration from different countries of the world. During all these, Satoshi Nakamoto who is the fkunder of Bitcoin compiled and released the bitcoins white paper report thag explained the ideology of a peer to peer version of digital cash which could be used for transaction in any part of the globe.
As we all know, Bitcoin is a digital cash and it is generated with encrypted techniques. The reason for the encrypted techniques is to regulate the availability of Bitcoin, making it's worth grow rapidly.
It is works in a decentralized way which means that it doesn't need a central authority before carrying out a transaction.
"Bitcoin" is a name of one unit of the current while "Bitcoins" is the name of of many units of the currency
Bitcoin comes from an encrypted process of special applications which requiers a vast amount of computing power. The people that does this process are called "Bitcoin miners"
Because Bitcoin is decentralized, It cannot be printed (replicated), however, nobody prints of manufactures a Bitcoin currency
Mining: this is the process in which different computers that work in a networked environment are constantly active to solve some mathematical problems, and the result of this solution is a presentation of encrypted keys which are used as coins. The networks which are distributed forms the Bitcoin exchange, allowing different businesses and individuals singularly or bulky process transactions using Bitcoin.
A currency is based on promising notes, where an individual knows that depositing the particular currency will be equal to getting a promised payback in the future.payback can be in any commodity like Gold etcetera, can also be in coins and notes of money. Talking bout Bitcoin, it's foundation is literally mathematical.
However, an individual can not have Bitcoin in their custody in physical sense. Besides, a Bitcoin is recorded information that exists only in a ledger and that ledger is the "Blockchain" which consists of all mined bitcoins. The Blockchain is shared by volunteered network of computer which are operated by real individuals. However, when a person owns Bitcoin, it means that the owner of that particular Bitcoin has the right to to transfer the a copy of a record to another person depending on the amount of Bitcoin owned. The same rights moves to the receiver of the transfered Bitcoin, and the transaction will be recorded in the Blockchain.
Bitcoin operates in a way that allows verification of authenticity of signature from a third-party. The person who signed reserves the ability for bringing up a signature and the data which is signed is the transaction that aids the transfer of ownership. All these actually happens automatically within the system, the users just need to click on the transfer button, sign-in or sign-out button,.just as we do in chippercash and the like.
The framework further ensures that manipulation by a single party is impossible, thereby maintaining the integrity of Blockchain.
As we all know, Bitcoin operates digitally (electronically, so, Anyone who has a Bitcoin wallet can make transaction with Bitcoin, therefore, issuing Bitcoin wallet to as many people as posible Will be the only requirement for smooth transaction in both the buyers and sellers side. However, payment can be implemented in tons of payment method, including wireless payments, mobile payments etcetera
Manipulation: cryptocurrency (bitcoins) can hardly be manipulated, because the generation and authentication framework for Mathematica depends on a detached process that coordinate the results in a way that is imposible for a single individual to gain control over. The software of Bitcoin is an open source, thus, allowing individuals examine fleas and correct flaws as well as bring in applications that enhances it's capability. Different business and government perse can find some better ways of enhancing their convenience of payments via bitcoin.
Account setup: when compared to a centralized network (creating a bank account), it is very easy to generate an account (wallet) without paying a dime for registration. An individual can own as many wallets as he/she wants, and there is no need for names, just a Bitcoin address also, all transactions performed is very much transparent as all are being recorded in the ledger called "the Blockchain"
Public and Private Address: a Bitcoin address can be set as public, and can also be set as private, depending on the owners choice. The government may set their own address as public so anyone can see how many bitcoins there is in their wallet. Private people can see and tell all coins in an address, but one thing they cannot do is to tell who the coin owner is. One of the biggest advantage of having Bitcoin as a currency for day-to-day transaction is that, the transaction with Bitcoin or other cryptocurrency is very fast, not minding the amount and distance.
Due to the decentralization of Bitcoin, it is very hard to block (freeze) a Bitcoin account
Due to the anonymiy of Bitcoin, the government Will find It hard to track the laundering actitudes and transacciones done with Bitcoin may be from diverse ilegal sources. Also, if someone gains access to another person's Bitcoin wallet, they can easily transfer funds, and the money will not be recovered but the culprit can actually be found through investigation and compelled to give back a refund.
The number of Bitcoin in circulation is fixed and finite, which make it increase in value and worth given that there is an increase in demand.
Currently, the crypto world is facing a bear market and the l price of Bitcoin is around $21k, irrespective of the bear market, it is still the strongest currency in the world. If Bitcoin is by chance adopted as a formal transaction currency, that would mean that all other countries in the globe will have a chance.of having a strong currency in their possession without having to pay costly for pegging.
Some countries peg their currency's value to that of the US dollar in other to maintain a balance of trade and to make their currency more attractive. Pegging basically allow individuals who pegged to a particular currency enjoy the similar benefits of that particular currency. However, if Bitcoin is adopted, it would be that even some countries who don't have the ability to pay for pegging fee will have a chance of gaining a strong currency.The continual mining of Bitcoin means that soon, the real worth of Bitcoin will be apparent. On the note that Bitcoin is the first and only coin that is cryptographically based to achieve huge adoption, it's real worth is significant for adoption. However, it can be viewed like cash because there's no need for individuals to sign their names or sign a transaction record manually when carrying out a transaction . It can also be viewed as credit cards because it brings about convenient payments (wirelessly), even from the comfort of your couch.
the adoption of Bitcoin will eradicate rent-seeking intermediary who work with formal mode of payment (money) for transactions. Also, the cost of transaction will be significantly reduced, making goods and services affordable
In some African countries and other countries online transactions is practically imposible due to the lack of internet and gadgets used to access the internet. Thinking of this, the world is actually moving very fast digitally (electronically) and it'll rely on digital payment.
Another important impact is on the cash remittance, individuals will not have to rely on transfer services like the western union to send money back home, they'll must have to send it im matter of seconds to the recipient address and the receiver will just have go to an exchange and exchange it for native cash.
The security and efficiency of Bitcoin will increase, forcing tax collector's and government entities too change their mode of tracking for collecting taxes from citizens
If not is adopted, it will create a savings system in which individuals need not to got to the bank to store money, but can easily and safely store their money in their phones without worrying of fees deduction.
Adoption of Bitcoin as a formal mode of transaction will erode a source of income for forex middlemen in the forex trade. Thus, the positivities are highly notable. It will bring about a huge positive impact to the world at large, making the world to develop significantly. However, in my own opinion, i recommend that Bitcoin be made an alternative coin for transactions, and a physical Bitcoin exchange should be created in countries that don't have internet access so that they too will not only be developed, but they'll also appreciate the existence of Bitcoin and partake in the evolution and also, a very strict and encrypted security network should be used to secure Bitcoin wallet so that there will be little or no fraudulent acts in the crypto world. Thank you for going through, please don't forget to drop your opinions if any.