Bitcoin has boosted the economy and even promoted social growth globally (especially in developing countries) because of high liquidity and transparency in the system encouraged dealing with strangers across the borders.
And developing countries contribute more than 40% of global GDP and play a major part in the world economy now as per the 2017 report by World Bank.
After the emergence of bitcoins, individuals’ financial services and access to capital have become much more relevant operations.
We have curated a list of 4 major reasons to give you better clarity about how bitcoin has been proved worthy for the world’s entire economy.
4 Reasons the Bitcoins Boosted the World Economy
#1. High Power to Entrepreneurs
After the emergence of bitcoins, entrepreneurs can easily commerce worldwide because bitcoins have made it easier to send or receive payments at the global level.
Crypto companies like Bitpesa are mainly available to serve the business owners for transactions with companies at the global level. In the fiat currency world, entrepreneurs had to face a lot of hassle for global transactions like delays in payment and high transaction costs.
The high liquidity nature of the bitcoins has made it very easy for business owners to convert their payments from the bitcoins to the fiat currency of their choice. The adoption of bitcoins by big brands like Tesla, Microsoft is a clear hint that traditional finance modes will vanish in the upcoming years.
The entrepreneurs will no longer face hassle to arrange the funds and waste time in banks as the interest rate on bitcoins is also very nominal.
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#2. High Transparency of Transactions
The bitcoin transactions are backed by blockchain technology, which is transparent and hard to tamper with because every entry in the blockchain is replicated to several systems worldwide and each transaction contains details of the history of a particular entry.
The bitcoin owners have full authority to access the transaction record available in the public ledger. Since no person or company can modify the record of transactions that have reduced the risk of corruption and inappropriate acts to a much lower level after the use of bitcoins by them.
As per the reports, a vast number of companies have immediately switched to the use of bitcoins or blockchain for business-related operations.
The transaction mode with the high transparency was highly desired by the people, and it has become possible by the launch of bitcoins.
#3. Better Opportunity For Conventional Banking System-based Countries
Even though the world banking systems have evolved a lot, still around 1.4 billion people around the world have no access to banks as per Forbes 2017 report.
But things have completely changed after the introduction of bitcoins.
Firstly, keeping bitcoins is hassle-free, you need a smartphone, internet connection only which is not the case of banking formalities. One has to go through some strict formalities and verification processes for availing of the banking services, which takes a lot of time.
The best part is that you have to pay very nominal interest rates and transaction costs have also been reduced to a much lower level.
#4. A Rise in the Economic Activities
The average increase in the number of economic activities has been noticed after the advent of bitcoins.
Economic activities play a vital role in boosting the overall economy of the world as well as a particular nation. As bitcoin is a global cryptocurrency, the several inflow and outflow of bitcoins took place regularly.
Each early adopter of bitcoins has enjoyed becoming a millionaire, and the response has been a source of motivation for millions of investors.
That’s why many businesses and people have considered bitcoins as an opportunity for business as well as net worth rise.
Shit towards bitcoins in business operations is likely to increase the economic activities to the next level in upcoming years.
So, these are the major reasons for knowing how bitcoins supported the world’s entire economy and it will become a powerful tool to boost the economy to the next level.