The term ‘Public Blockchain’ may be frowned upon. How can a system of money transactions within the public forum be reliable enough to shift from the conventional banking system?
Initially, this idea seemed quite absurd to the masses across the world. The concept of Bitcoin did not appeal to their spending habits. Even though Nakamoto developed this system for those beaten down by the Great Depression of 2008, people could not put their trust into something as intangible as bitcoins.
How to trust Bitcoin?
It takes time to build credibility around anything in the market. Something like Bitcoin would have taken some more time since it involves putting in people’s money and investing. However, despite all odds, Bitcoin picked up the pace. The world saw the first hike in the value of Bitcoin from an insignificant cost to leaping $0.08. As the poor economic condition eventually recovered, the price of Bitcoin jumped from $1 to $32 in the same year. This was unbelievable. Investors started taking an interest in Cryptocurrency.
There was always a question regarding its safety measures. Blockchain Technology was only a recent development back then. People at large did not clearly understand its benefits. The workings of the technology had to be explained in due course for investors to put their trust in Cryptocurrency. Surprising things you can buy with crypto indicate the success of Bitcoin ever since 2011 when it reached its first peak in years.
Advantages of Switching to Bitcoin
The conventional banking system has always been the norm. People have never known that an alternative method could have been possible. There can be many incentives that lure people into making a shift in their banking habits. Some of them are listed below.
- The market forces that influence the cash flow and cause inflation will no longer levy any power on Bitcoin investors. The value of Bitcoin is unaffected by whatever goes on in the market.
- The transaction details will not be under the scrutiny of an authority. It is not within the jurisdiction of any central authority to peruse through the transaction details of any individuals if it is done using Cryptocurrency. Earlier, taxes could not be levied on transactions in Bitcoin and the likes.
- The time taken to complete transactions is relatively less compared to what happens in the banking atmosphere. Transactions across the borders occur in less than a minute. Payments in Bitcoin have made it possible. Without the monitoring of a third party, the amount does not take long to be disbursed. At the same time, the payment is approved by multiple users on the network who are well aware of the transaction history so far. This disables double-spending. Even well-established banks have shown discrepancies in smoothly dishing out payments in some instances.
Incentives for Switching
Many online platforms incentivize the act of investing in bitcoins. They provide special offers for the ones making payments in Bitcoin. Special coin-back offers, winning a few extra Bitcoins, or free access to a site for paying in bitcoins are some incentives that users sometimes have.
Owing to these benefits, many investors have considered Bitcoin as a serious investment option.
Besides investing, the benefits of using Bitcoin as a currency is also evident. If more places start accepting Bitcoin as a payment method, it will gain popularity as a currency. When Tesla Motors announced its inclination towards Bitcoin, its value showed a steep hike. On further promoting that Tesla would accept Bitcoins in exchange for vehicles, Bitcoin users showed massive growth.
Conclusion
There are countries where the access to digital currency is bleak. A massive chunk of the population worldwide still have no idea about the raging influence of Bitcoin on the millennials of the somewhat developed countries. Even after incentivizing Bitcoin possession and investment, it won’t be easy to convert people into full-time Bitcoin users without making it acceptable as a payment option in more places.