As technology continues to advance at an astonishing rate, any industry can be completely overhauled if the latest breakthrough affects the way they do things. From online shopping to on-demand entertainment, the world has seen frequent and major changes over the last few years, and the world of finance has been no exception.
The international finance markets already underwent a significant change when traders gained the ability to track fluctuations online, gather international news as it happens and trade over the Internet. No sooner had the global market gone online, than cryptocurrencies became headline news, although they have been a subject of debate in the financial world since the 1980s.
In 2009, when Satoshi Nakamoto (thought to be a pseudonym) first launched Bitcoin, the world responded with widespread confusion. The idea of a currency that didn’t require banks or any part of the traditional financial infrastructure was certainly radical, but enough people saw the potential in this new way of conducting transactions and cryptocurrencies headed for the mainstream.
Benefits of Bitcoin
As the first and most headline-grabbing cryptocurrency, Bitcoin paved the way for a number of different currencies that have enjoyed varying degrees of success over the years. Competition has emerged in the form of cryptocurrencies such as:
- Binance Coin
Bitcoin was originally designed to be used in day-to-day transactions, and the idea behind it was partly inspired by the financial collapse of 2008. The purpose of Bitcoin was to circumvent traditional banking systems by using decentralized systems for verification.
Some cryptocurrencies have been designed with specific purposes in mind, such as processing high value transactions between financial institutions, or associating with an external reference in order to reduce currency fluctuations. Others, such as Binance Coin, came about as a result of a split between the original creators of a currency and users who wanted to take it in a different direction.
The Rise of Cryptocurrencies
Since the success of Bitcoin, cryptocurrencies have become an increasingly popular choice among those who wish to have an alternative to traditional banking. Many believe that governments should have less control over global finance and want a viable alternative to the current banking system, others treat it as an investment, and then there are many users conducting regular transactions using virtual currencies.
Many of the more technologically advanced industries are already on board with the use of cryptocurrencies. So it is becoming increasingly easy to complete transactions with them in a variety of settings. For one, online gaming has welcomed the rise of cryptocurrencies, and players can enjoy online casino games using Bitcoin. The only potential downside according to this review, is that some sites may flip-flop on their decision to accept cryptocurrency payments. But this can be true of any industry. Tesla famously did the same in 2021.
Benefits of Using Bitcoin Online
Security is incredibly important to the online gaming industry, and players want to be absolutely certain that their money is protected as effectively as possible. Bitcoin, and other cryptocurrencies, have a distinct advantage over others because the very nature of the transactions gives them additional benefits.
Bitcoin transactions are peer-to-peer, meaning that they are authenticated by other users and do not need approval or authorization from an external source. This means that they do not incur banking fees such as overdraft charges, deposit or withdrawal fees, and minimum balance charges in the same way that other similar transactions might.
Bitcoin also has the advantage of low international transaction fees. Traditionally, moving money from one country to another, particularly when using more than one currency, has attracted both currency exchange costs and other transfer fees.
Because these fees are so much lower with cryptocurrencies, they are particularly appealing to gamers who play on platforms based in other countries. In countries with legal restrictions on online gambling, players will often seek out casinos based in other jurisdictions, and Bitcoin makes that a lot safer and easier.
Bitcoin is one of the most accessible forms of currency as it does not have a physical form and can be used via the Internet on any computer or smartphone. This makes it easy to access for those who might otherwise struggle to get to a physical bank, and, as such, it is ideal for anyone that lives or works remotely and relies on online transactions.
The Future of Cryptocurrencies
El Salvador has made a trailblazing move and declared Bitcoin to be legal tender. It is the first country to do so, and although it maintains the US dollar as its primary currency, the government is hoping that Bitcoin will be used more widely in businesses.
In a country where it is not always easy to get a bank account, and many citizens send a high portion of their income home from other countries. Using cryptocurrencies is thought to be a solution to the problem of high banking fees and lack of access to traditional banking.
Other countries are also considering adoption of cryptocurrencies, including Panama, China, and the US. As cryptocurrencies become more mainstream, their adoption seems likely to spread beyond the online world in the coming years. Early adopters may reap the rewards of getting their infrastructure in place before the crypto boom goes totally global.