Digital Money, Financial Technologies, Online Wallets, Payments Gateways…
If there is one area of our world, which has seen rapid advancements in terms of science and technology, it is finance. The impact of the internet and its power as providing simplified solutions (especially in the field of finance) has been impactful.
We are no longer dependent on just banking structures to run our economic world. In fact. Many of you reading this article, would hardly ever step into banks for monetary requirements.
In other words, the use, processing, and spending of money have come a long way in the past one to two decades. This has no doubt been engineered by the internet, smartphones, and other developments in the world of finance.
The History of Physical Money in the World
If you take a peek at history, you will realize that the modern currency as we know it started somewhere around a hundred years ago. The silver American coin coexisted with the paper one dollar. Silver was the backing physical asset, which commanded the price and value of the paper currency.
This changed to gold in the early part of the twentieth century, when the entire world moved to a gold standard. In the 1970s, when Middle-East struck oil, the gold standard was removed and the dollar, backed by the economic and military strength of the United States rose.
Ever since then, the world’s global trading and commerce have been evaluated on the ‘Dollar Standard’. Inherently, the dollar or for that matter, any other fiat currency is not backed by physical assets. It stays in value given the government and central bank’s valuation.
From 1990 onwards we see how money came to be redefined in debit and credit cards to ease the usage. The 2000s saw the rise of Net Banking, Payment Gateways, and other Fintech developments.
Bitcoin and the New Interpretations of Digital Money
Bitcoin is ‘Internet Money’. It is generated on the internet and lives on the internet. It can also be processed, used, and stored on online platforms and the digital world. For many experts, this is the logical culmination of money and how it will be used in the future.
Every fintech advancement seemed to improve the ease of use, as well as remove impediments to money. The digital transformation has improved the world’s financial processes, bolstered trading and commerce, and allowed more people to come within the folds of financial inclusion.
Bitcoin seems to build upon the above and then take a drastic step forward. It not only eliminates impediments, but also steps forward to remove the authority and say of governments, banks, and other intermediary financial institutions.
The money of the people remains with the people. Commissions, payment fees, and lengthy delays in processing the same are gone if you use Bitcoins. While regulators are engaging with the crypto and taxation policies have been laid out, the independence of Bitcoin remains very much intact.
Top Advantages of using Bitcoin as a form of Digital Money
According to the bitcoin system website, the following are the major advantages of using Bitcoin as a form of digital money-
- Money transactions with Bitcoin are instantaneous in nature.
- There are no intermediate fees and commissions (5% to 10%) which is levied.
- The transactions over Blockchain are safe and secure and cannot be hacked.
- Data, records, and transaction IDs are always maintained on the Blockchain network.
- Taxations, if any are calculated as Capital Tax Gains in most countries (like real estate).
- There is no chance of faulty payments or promises that can be made in Bitcoin payment.
- For merchants, this means no percentages are deducted when accepting crypto payments.
- A simple smartphone can be used to run virtually all banking transactions.
- Bitcoin is both a currency as well as a store of value.
The Final Word
It is important to note that Bitcoin has arrived. Meaning, that digital money, which is very much a part of our reality is going to take the next logical step. Bitcoin and other cryptocurrencies are likely to lead the way in a new direction of how money is used by the world’s populations.
HussaiN is a full-time professional blogger from India. He is passionate about content writing, Tech enthusiast & computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet.