Since its inception, bitcoin has gained market value and has become of global significance. As the world’s leading Cryptocurrency it has gained quite a large user base as the most valuable Cryptocurrency in the market. There have been a lot of controversies on the use of bitcoin for money laundering and this has added to its potential problems. The question on everyone’s mind is, how long will its success continue and what is its effect on the financial economy?
What is the effect of bitcoin in the banking sector?
Banks have declared that there is and would be a most devastating effect of banking as this would disrupt the control that the bank has over the economy. Usually, central banks run the economy and are charged with distribution and all forms of financial transactions. Imagine a scenario where there is less and less need for a bank due to a secure digital asset which can be used to purchase anything through online transactions. This is where we are headed with the abilities of bitcoin. This would greatly affect the banking system. Various organizations and service providers are already accepting bitcoin as a means of payment for services while some corporations are also giving staffs the option to be paid salaries in bitcoin.
The political impact of bitcoin
There is a buildup of controversy surrounding bitcoin as it favors individuals more than the government. There is no central control unit, no state can exert ownership, and this is due to the cryptography which gives it immunity over any form of external influence.
We are not sure what the effect of bitcoin would be to the society but it does provide a safe secure way to transact and it supports the growing technology of a cashless society.
Future effect of bitcoin
This is yet uncertain but predictions state that more companies, countries, individuals would key into the idea of Blockchain technology, which is the most secure way to transact and in imbibing this new method everyone would choose a most successful Cryptocurrency with stability and is generally accepted worldwide. We may be looking at a new global currency!