- 23 Dec 2021
- Reading time
- 3 minutes
Currently, Bitcoin is the most prominent virtual currency, constantly sought after by global investors and merchants. Its meteoric rise has even inspired some governments to create independent cryptocurrencies to rival it. However, Bitcoin still boasts the lead crypto, with significant investments among financial institutions, businesses, and investors worldwide.
Every economic sector has adopted Bitcoin, including finance, commerce, retail, manufacturing, real estate, and travel. Its value continues to grow by the day, attracting an entire global market of tech-savvy consumers willing to buy goods and services and trade in crypto. So, how does Bitcoin affect society? The following article answers that question.
Drives Economic Growth
Bitcoin has proven its immense potential to fuel economic growth in many ways. It has inspired an entire global industry of cryptocurrencies, with assets worth trillions of dollars. It has opened up vast money-making opportunities for merchants, investors, and individuals, facilitating seamless international transactions.
Crypto businesses such as Bitcoin Buyer are excellent examples of Bitcoin’s impacts on the economy, you can visit this site online here. They process crypto transactions and enable other businesses and individuals to make money through Bitcoin trading and investments. Crypto exchange platforms serve as marketplaces where people can buy and sell crypto conveniently.
Apart from crypto exchange businesses, Bitcoin has also inspired several products developed around it, including mobile apps and games. Those innovations enable people to access Bitcoin while driving economic growth efficiently. Bitcoin facilitates the free movement of money across international borders, fueling investments in multiple economic sectors globally.
Multiple studies have highlighted direct links between corruption and poverty. For example, Transparency International says poverty rates tend to soar among the populations that pay bribes constantly. The organization also points out that corruption increases the cost of successfully meeting the United Nation’s Millennium Development Goals, especially water and sanitation, by about $48 billion.
Bitcoin delivers innovative and precise methods of cracking down on corruption. Aid organizations were the first to realize that, and most of them now use Bitcoin to track the disbursement of funds to needy populations worldwide. Bitcoin’s blockchain ledger enables organizations, governments, and businesses to track how they spend funds and the entities spending them in real-time.
The blockchain can also enable the institutions issuing those funds to allot the specific timeframes of accessing them and their intended purposes. A recent study established cryptocurrencies could reduce illegal public sector bribes by $1.5 trillion to $2 trillion annually, crippling corruption significantly.
Promotes Transparency in Financial Transactions
Banks and money processors usually assign intermediaries to oversee transactions in the traditional systems. However, the inclusion of third parties in transactions only exposes the public to more threats, including fraud and higher fees. Bitcoin addresses that problem by delivering a trustless environment.
Bitcoin is a peer-to-peer payment method linking two parties involved in a transaction without any middleman. Its blockchain compiles and validates all users’ addresses and transaction histories on a digitized ledger. The catalog is encrypted and irreversible, making it imperative for both parties to hold their ends of the bargain.
The encryption facilitates data security, preventing users and bad actors from manipulating the transaction ledger. The public ledger is accessible to all Bitcoin users on the network, impacting the utmost transparency in financial transactions. That encourages individuals and companies to invest in Bitcoin and other cryptocurrencies, driving growth and development.
Unlike fiat currencies regulated by governments and central banks, Bitcoin is a decentralized payment method and asset, not subject to a central authority. Thus, it is a universal currency that anyone can transact worldwide. As discussed above, Bitcoin mainly affects society by driving economic growth, reducing corruption, and promoting transparency in financial transactions.