Jack Vonder Heide, President of Technology Briefing Center, a firm that advises banks and credit unions on technology trends sees a bright future for the cryptocurrency, especially as the sharing economy develops. “All kinds of assists could be tokenized. If you have a boat, you could sell shares to others very quickly with no title or paperwork “he said. Forbes.
Technology is unraveling a whole new world and with it comes a new form of currency and payment system that is being embraced. Humans have always sorted out ways to carry out transactions making money and exchange of value deeply rooted in our history.
We have moved from the barter trading era to gold and then coins and to the fiat currency system. In all these stages, there has been a continuous need to evolve and create much less hassle as people make day by day transactions among each other.
In the last few years, the world has become an entirely globalized place with the breaking of the internet and technological development hastily growing.
However, even with the procurement and advancement of different means of payment systems, there has been a surging need for better options.
In the 1950’s there was the arrival of credit loans system, followed closely, years later with the birth of Automated Teller Machines(ATMs) which gave people the opportunity to deposit and withdraw money as quickly as they wished. There have also been organizations set up to improve the money transfer system like the Society of Worldwide InterBank Financial Telecommunication (SWIFT) which is only a messaging system between banks, and the Western Union amongst many others. Eventually electronic transfer systems and new payment Industries like PayPal, OFX emerged.
With the ever growing upward push of the e-commerce industry, making the world a more connected place, the drive for individuals and organizations to take their businesses across borders have allowed the preceding money transfer systems to show a few lapses and loopholes that could affect businesses and the everyday lives of people.
While the future of the money transfer industry seems promising as monetary institutions are not relapsing and the electronic funds transfer system continually shows an outstretched possibility of ways transactions can be carried out, there is already a significantly unrivaled possibility of digital currency triumphing over the current money transfer system.
The emergence of the cryptocurrency was first recorded in the 1980’s with cryptographical advancement in cryptography. Finally in the 21st century, Bitcoin as a crypto currency is making great waves. Following a record in the last few years, Bitcoin as a payment system has been on an average rate increase of 60% per year. This currency uses a peering system and the transactions are established with the aid of network nodes and also recorded on a publicly disbursed ledger popularly known as block chain.
Bitcoin became the first digital currency to be transacted in the block chain in 2009. Now, the block chain is most times a misconception with Bitcoin itself. Block chain is the technology behind cryptographic currency. This means that crypto transactions are recorded on a block chain and every participant of that particular block chain can see it.
Within the year 2017, Bitcoin became the most worthy crypto currency as it broke the trading chart by surging up to $20,000 dollars. Today, this virtual currency can be used to carry out the least transactions as ordering for pizza or even booking a hotel. We would admit that this currency is without a doubt here to stay.
People like Jack Vonder Heide and corporations like the Deutsche Bank agree that the digital currency has a possibility of taking the monetary market headstrong.
The Deutsche Bank has come up with its series of predictions, believing that the range of crypto currency users in the world will grow by 4x in the next ten years.
The Bitcoin having a number of advantages over other payment systems holds a brilliant future for itself and the world at large. The digital currency promises to outlast other systems, posing as a solution to most worldwide transfer issues. The Bitcoin exchange technology creates an opportunity for over 1.7billion unbanked people around the globe. This brings under one canopy, educated and uneducated people. This would eradicate the process of having to be first of all registered to a financial institution before payments and transactions can be carried out.
Registering under financial institutions can be tiring as identity proof has proven to be a loophole, but thankfully an opportunity for the crypto currency to take over. To be part of financial institutions, it is required of you to provide a means of identity and this would typically require paper works that not everyone can provide. Due to a number of reasons.
A recorded variety of 1.1billion people around the world have issues with providing a solid means of identity to financial institutions, thereby hindering them from being a part of the global financial institutions. The Bitcoin era promises to eliminate this issue, giving a large number of people the opportunity to belong to the financial structure.
The Bitcoin era could ultimately put an end to extremely long, cumbersome and error prone procedures attached to money transfers done internationally. High exchange rates of currencies from one country to another have also posed a threat for the regular money transfer system, however at the same time seeming to be a doorway for the Bitcoin exchange market to thrive. These expensive transactions which are mostly caused by the intervention of third parties before the transfers finally get to their destination can be limited and slower transfer systems taken out.
Unlike the current money transfer systems, Bitcoin offers privacy as nameless transactions can be carried out and users information can be protected through cryptographic technology. People will be able to make quick deals and eliminate the whole process of paperworks and ultimately bypass them in the later future.
The most thrilling aspect seems to be that the digital currency is a decentralized one, meaning no subjection of any kind to regulations by a specific body or organization giving anyone and everyone accessibility and a chance to connect to it. This is one major reason why the digital currency would stand out. The DeFi system, which is also known as the Decentralized Finance makes it aim the eradication of third parties or intermediaries but rather introducing smart contracts to the people.
This in turn will save time as the regular money transfer system sometimes takes days or even weeks before transactions are concluded. Mostly the international ones.
Smart contract is an area of decentralized finance that offers automatic execution of contracts when certain conditions and agreements are met. These contracts can be carried out without third party witnesses like a financial or a legal institution. This brings people to the question of transaction security.
People can make transactions with their data protected through cryptographic techniques offering deep rooted security and rich transactional networks. The block chain system sharing the information of transactions taking place with participants strengthens the security system also. If this system were to be hacked, it’d require a disruption and temperance with the entire block chain. However, with the increasing rise of participants in the block chain system, security and the trust for this digital currency is deepened by the day.
Bitcoin could also be the one stop shop solution to employers paying their employees who work remotely. Also, people would be able to reach out for more remote jobs without fear of exchange rate or currency degradation.
Currently, Bitcoin offers diverse opportunities including investment in financial systems in the global economy. The emergence of the digital currency has taken the electronic payment system a few steps further with the invention of block chain and that we are grateful for.
There is no doubt that the digital age is right here and now and there seem to be a ton of reasons the Bitcoin as a digital currency would take over. The possibilities are endless and the anticipation for what it holds increases with every passing day. The world is becoming more connected everyday and it is immensely advisable to fall in line and join the digital world. Global economy keeps evolving and in no time would take on its wings and fly.
There have been numbers of fintech companies set up to increase and build the community of the cryptocurrency users, to educate individuals and reach out to a whole new number of people. Like we have Dantown, a fintech company in Nigeria with the sole aim of connecting individuals to the crypto world and taking your money transfer game to the next level. Dantown offers incredible, reliable, efficient, straightforward and flexible crypto solutions, ranging from Bitcoin exchange to trading. Dantown in close line with the cryptocurrency system promises to relate solutions to the current issues consumers face in today’s payment system industry.
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