Bitcoin is a virtual foreign currency that doesn’t rely on a central authority for bookkeeping but instead is completely open-source, peer-to-peer network for money, something unparalled in the history of human economics. But are the people, their staff and businesses looking ahead to this new form of currency? Bitcoin News
Bitcoin can take off occasionally and countries sooner than expected depending on political climate. When a government destroys and debases its currency, then it is likely to develop in popularity. That’s so what happened in Perú when the us government converted local currency denominated bonds into US Dollar denominated an actual at an exchange rate that was fixed by the government. Bitcoin use in the country taken through the roof after this, and it is still accelerating (measured in conditions of wallet downloads every month).
Cyprus was another good example – when the government tried to seize people’s money, Bitcoin became popular in the country because it is far more fluid on a world scale and is sent instantaneously to another person anywhere in the world without the need of any govt intervention. This also means that realistically, the govt cannot control the resource and demand of Bitcoins within its borders.
Of course poor governance is merely one side of the equation. Economics dictates the other. Bitcoin takes off in places that survive on entrepreneurship and where the policies are good. Business owners will discover the use of Bitcoin to be incredibly more useful than the existing repayment system that the globe has that is structured on charge cards, because vendors need to pay the credit card companies everywhere from 2-4%. If all transactions were purely in Bitcoin, without the conversion to fiat at all, then a transaction fees for the company is zero. Literally zero. You can send and obtains a commission for free through the Bitcoin network. That’s what makes the economics of using Bitcoin so powerful.
Some of the cities that are ahead in this creativity include the familiar titles like San Fransisco and New York but also the lesser known gumptiouspioneering, up-and-coming cities like Berlin, which has a huge booming market for Bitcoins.
Once people in a city or country see Bitcoin as a store of value and simultaneously see it as a payment processing system that eases the current burden on merchants, Bitcoin gets the potential to take off. It has happened in the past and it is likely to happen in the future. Of course you always require the entrepreneurial spirit and risk-taking to dethrone a decades old existing incumbency, nevertheless the good news is, it is occurring across the world simultaneously.