Nobody in this world would have ever thought that the new decade starting with 2020 will compel the entire human race to shut themselves inside their houses to stay alive. Unfortunately, the situation is real and we have become like animals in cages. The outbreak of coronavirus pandemic has resulted in a war in which the whole world population is against a virus that is expanding its roots at an alarming rate. Where earlier, the concept of globalization was the underlying pedagogy for global business operations, social distancing is the new terminology which is being promoted intensely by the governments across the globe to safeguard its citizens from COVID-19 transmission. The pandemic has crippled the world economy severely, causing business operations, industrial domains, and public sector arenas to come to a standstill. Countries around the world are fast heading towards recession, with fiat currency rates plummeting drastically.
Interestingly, to see the brighter side of this situation, why not we enhance our knowledge by exploring new industrial arenas such as Bitcoin. Launched in 2009 by a group of individuals under the pseudonym of Satoshi Nakamoto, Bitcoin has come a long way facing significant ups and downs in its crypto journey ever since its inception. Often referred to as the pioneer of cryptocurrencies, Bitcoin is one of the most popular virtual currencies available for trading in the market.
Where on the one hand, the value of fiat currencies and other valuable commodities is dropping below at an alarming rate because of the coronavirus adversity, Bitcoin has managed to sustain its price in a surprising but true scenario. As the core financial realms across the globe are heading towards the verge of a breakdown, they are more likely to give birth to some of the biggest economic ailments in the history of mankind. This situation has forced people to look for other favorable financial options that can boost the economy as a whole. Bitcoin is one such option, has evolved as a major financial source for investors that has the potential to survive the critical situation created by the corona pandemic.
It sounds unrealistic if Bitcoin is still an unheard concept for a person belonging to the Millennial generation. However, if you still belong to that section of society, then this article is just the right thing for you. It will help you in understanding the unique, unprecedented merits of Bitcoin and what makes Bitcoin a prominent finance option in these times of global crisis. Have a look:
Control of central authority
Fiat currency is the native, legal money released, operated, and managed by the central government and central banks of a country. On the other hand, Bitcoin is not controlled by a central authority; rather, it is based on blockchain technology, which eliminates the need for a governing body and validates transactions on the network itself. Thus, Bitcoin is free from monopoly and significant authoritative control of a single organization.
Check on currency supply
Government and central banks have the entire control over the publishing and circulation of paper or metal-based fiat currency in a particular currency. They can increase the supply of fiat currency or put the printing at halt depending upon the economic scenarios prevailing in the region. This keeps on inflating the value of the currency from time to time in comparison to other currencies of the world while eventually causing inflation or deflation. Unlike fiat, Bitcoin has a limited total supply of 21 Million BTC as mentioned in its whitepaper by the creators. A fixed supply implies that there can only be 21 Million Bitcoins in the world, not less, not more. No price inflation can affect the Bitcoin business making its value unchanged over time.
Stringent government control
As fiat currencies and other financial assets are fully controlled by the government and banking entities, the financial activities of the citizens are open to them for scrutiny. All the transactions or purchases are maintained in records, and so concealment of assets becomes difficult in the first place. Bitcoin, however, supports anonymity and privacy to a certain extent. Though blockchain transactions are transparent, they still are more private in comparison to other sources. Also, as Bitcoin does not have a central authority to govern, governments do not have a right to keep track of your crypto movement. E.g., authorities can blacklist your crypto wallet, but they cannot stop you from using it for transaction purposes.
Advanced financial structure
Though technology has deepened its roots in the banking and finance sector, there still exists a space for further developments. The traditional banking sector has evolved significantly in the past few years while facilitating sending and receiving of money across borders, settling huge business payments, allowing transactions in precious financial assets other than money, easy money transfers during shopping from abroad, etc. However, this centralized financial system still lags behind a lot in the form of errors and costs. Bitcoin uses blockchain technology, which is super-fast, accurate, secured, and highly economical. It helps in bridging the gap between people and financial services in a big way. Today, the financial system has become more digitized, and people are adopting services that help them in executing their demands in a single click. Undoubtedly, Bitcoin caters to all the requirements of the modern generation efficiently.
Bitcoin is developing continuously
Bitcoin is in its eleventh year of operation, but still, it is growing in terms of innovation and development with every passing day. The crypto enthusiasts are putting their best minds to improvise the BTC blockchain in all its forms to eliminate the loopholes sustaining in the network. A few examples of Bitcoin developments include:
- The launch of the BTC network on April 27, 2020, which will help the owners to earn interest on their BTC holdings.
- Infusement of Lightning Network which boosted the transaction speed immensely
- Launch of Bitcoin ATMs to encourage mass adoption
- Usage of advanced protocols and working tools to facilitate investors
- The launch of the Strike solution which will work as a robust merchant checkout system with integrated fiat on and off-ramps. The product is designed by Jack Mallers.
Bitcoin can be seen as a potential payment settlement system in modern times as it comes packed with all the major features which satisfy the new-age financial requirements. The cryptocurrency is the leading coin when it comes to market capitalization and customer base volume. At present, when the world economy is falling down steeply, Bitcoin can become your trustable partner who is free from the limitations of the fiat currency as well as other financial assets available in the market. So, set out your financial goals and objectives and enter the world of Bitcoin.