No company can offer a complete set of services to meet the needs of its partners, customers, and suppliers. However, the platform is suitable for even novice traders when visiting the website to trade in bitcoin with the help of advanced AI technology. It is because regulation is a barrier to entry for new market participants. For example, in the US, you’ll need approval from multiple entities to form a legally incorporated financial holding company to provide banking products and services cross-border.
In contrast, Bitcoin is an internet-native technology which requires no intermediaries or central authority – anyone can connect directly on a peer-to-peer basis with any other individual or business around the globe (ideally). The transaction validation process is competitive and makes use of asymmetric encryption. It is secure and highly resilient. However, many massive global financial institutions it relies on are not so amenable to innovation. In particular, they’re paranoid and threatened by bitcoin’s decentralized structure.
The following offers a glimpse into some of these institutions’ minds to help readers understand why bitcoin is such a disruptive force in the financial sector. Unfortunately, many startups in the financial sector, particularly non-banks and non-financial institutions, are not immediately aware of bitcoin’s utility and what people can use it for. To set these fringe players straight, we’ll objectively examine bitcoin.
1) Governmental regulation of Bitcoin can mitigate potential risks and help market growth.
Bitcoin’s structure is attractive to many new users and business owners because it allows them to hire and transact without government regulation. In the US, this means they can evade taxes, and in other countries, they can evade regulations that might stifle innovation. It is one of the main reasons why bitcoin has increased. There are currently no barriers to entry for new businesses. While some market participants are using bitcoin for illicit purposes, that isn’t stopping average consumers from using the technology that wants the ability to exchange value without government surveillance, regulation or control.
2) Bitcoin has the potential to boost financial inclusion.
Much of the world’s population has no access to mainstream financial services because they are not served by traditional national banks and are located in areas where banking infrastructure is unreliable, absent or inadequate. For example, many people in sub-Saharan Africa have no access to bank accounts or credit cards due to the high cost of servicing these customers and the lack of traditional payment infrastructure. However, Bitcoin can be a low-cost payment method for anyone with access to mobile phones, including rural farmers and the world’s unbanked population, which numbers around 2 billion.
3) Bitcoin can lower the cost of remittances — even to places with significant obstacles to traditional remittance services. Moreover, it can be used by users to send money instantly with meagre transaction costs. People in developing nations with family members working abroad and sending money may have found traditional remittance services too expensive and other transfer services inconvenient or unreliable. Bitcoin has the potential to lower the cost for everyone involved.
4) Bitcoin could help address the growing problem of underbanked consumers.
Research from The World Bank suggests that 2 billion adults remain outside the formal financial system worldwide, which has fallen only slightly since 2011 (2.5 billion). Many people cannot access traditional banking services and can’t get loans from banks. In addition, their poor economic situation means they are underbanked. Bitcoin can be a medium of exchange for these people, and new businesses can provide them with simple, cheap remittance services without developing an in-house infrastructure.
5) Bitcoin’s price is rising sharply.
This uptick will likely continue as the public eye is focused on bitcoin amid increasingly fierce regulation and the collapse of financial institutions. As a result, Bitcoin rose over 6000% in 2021, a significant increase given that the cryptocurrency has only been around since 2009.
6) The vast majority of bitcoin’s transactions are small.
Bitcoin offers a low-cost, peer-to-peer method for anyone to transfer value quickly and without the need for traditional intermediaries. However, the system isn’t designed for large commercial transactions like those that occur through traditional financial institutions.
7) Bitcoin is decentralized and non-political.
Most financial institutions have strong political ties with governments which can lead them to serve specific market segments at the expense of others or keep certain high-profile market segments under their control in other ways (e.g., regulation). Bitcoin is not political and has no regulator or authority overseeing it. It is decentralized, borderless and has no state-issued currency.
8) people can use Bitcoin’s structure to secure transactions.
In case of a break-in, bitcoin offers strong security through its encryption system, which uses consensus mining and distributed nodes to verify blocks of transaction history without the need for a trusted third party (like a bank). It means that while the system isn’t isolated from other financial institutions or businesses, it doesn’t require any third party as an intermediary either!
9) Bitcoin is flexible in design and open-source code.
It means it’s not reliant on any one party for development or regulation. It also means that it can be adapted to meet changing needs, legal requirements and market demands without asking permission from any entity. With the ability to modify the code and add those changes in such a way as to maintain backward compatibility, bitcoin has the potential to be flexible while addressing different market segments in different ways.
The proliferation of bitcoin leads big companies (like Amazon and Alibaba) to use it for transactions between their divisions, even startups like Overstock