Bitcoin’s Effect on the Economy’s Future

bitcoin economy

Since Bitcoin’s inception in 2008 by Satoshi Nakamoto, it has gained a lot of grounds in the current economy since it offers a lot of benefits to those who use it. There are minimal to zero transfer fees when using the cryptocurrency, it’s transparent, it’s not managed by one entity, to name a few.

However, there are still those who are skeptical to Bitcoin and its other cryptocurrency kin. In our last blog we have discuss if Bitcoin is safe to be use. To further establish that point, we will delve on those who are affected by the rise of cryptocurrencies, its effect since on the current economy, and the number of people that are using it.

Banks and merchants

“Future of finance”. That’s what Goldman Sachs described Bitcoin in their current published report regarding cryptocurrency. Goldman Sachs is a leading firm in banking and investment.

The major changes that Bitcoin will bring will be how consumers are going to pay for goods, as well as concluding certain transactions. It’s been pointed that merchants will be the most likely that’ll benefit from this as they can save a lot of payment costs, impacting large money-transfer companies like Western Union, Xoom, and Moneygram. Indeed, Bitcoin could be attributed to some of Western Union’s profit dropping by 25 percent.

The rise among merchants accepting Bitcoin as a form of payment is expected to increase in the oncoming years. According to Goldman Sachs’ analysts, their survey conducted with the Electronic Transactions Association has yielded results that 23 percent of merchants are planning to accept Bitcoin as a currency within this year.

Even banks are currently using cryptocurrency. One in particular cryptocurrency that has penetrated the banking industry is Ripple network that is partnered with banks such as Fidor and Cross River.

Another impact that Bitcoin will bring is in global remittance sectors. Customers who wish to use cash to start the transfer process could use this cryptocurrency to send money to other countries. Bitspark is an example of companies that allows you to do this.  The firm charges a flat fee to those conducting business with them, instead of the 1 percent charge you pay for money-transfer companies.

The country currently leading in the Bitcoin race

The current dominant player in Bitcoin is China accounting for 80 percent of the cryptocurrency’s global transaction. This is despite Chinese companies refusing to accept Bitcoin as a form of payment due to the restrictions imposed by the People’s Bank of China (PBoc) on Chinese Bitcoin companies limiting their approach to traditional payment processors companies within the country.

One figure that’s seen as a prominent member in the Bitcoin community in Beijing has estimated that the number of Bitcoin miners in China reaches to tens of thousands that mainly comprises of IT professionals and hardware engineers.

Gold farming, an activity that involves playing a game called World of Warcraft and exchanging credits earned in the game for goods and money, can be somewhat seen as a precursor for the number of China’s Bitcoin miners. This is why it comes to no surprise to others that this country currently leads the Bitcoin race.

With all the big companies and the number of people involved in Bitcoin it’s certainly getting difficult to doubt the veracity of cryptocurrency that has the global economy stirring.

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