Article
21 Feb 2022

Does Bitcoin Have an Economic Value?

Satoshi Nakamoto unveiled Bitcoin in 2009 as an alternative transaction currency that would resolve the inadequacies of the traditional banking systems and fiat currencies. It is a decentralized digital currency, facilitating faster, secure, and low-cost international money transfers. Bitcoin has steadily grown to become the most prominent cryptocurrency. 

Bitcoin's stellar performance has also earned it global recognition as an independent asset class, outperforming traditional assets such as gold and diamonds. Currently, it accounts for almost half of the entire crypto market cap, with significant growth potential. Those statistics beg the question; does Bitcoin have an economic value? Yes, Bitcoin has immense economic value. The following article explains how Bitcoin contributes value to the global economy. 

Robust Economic Activities

Bitcoin's successful run has inspired the emergence of several cryptocurrencies. Most of the cryptocurrencies available today are developed and run based on the Bitcoin protocol and its underlying blockchain technology. Bitcoin has independently inspired an entire global industry valued at over $1.6 trillion, with significant reserves held by institutional investors and individuals worldwide. 

Bitcoin's exceptional performance has also extensively driven its global market demand, generating money-making opportunities for crypto miners, exchange businesses, crypto trading platforms, and investors. Crypto exchange platforms provide various investment opportunities and resources for companies and individuals to make money with Bitcoin. For instance, you can learn new investment terms on platforms like ekrona

We expect Bitcoin to generate even more opportunities for economic development as its adoption continues into mainstream sectors. 

Widespread Real-world Uses 

Bitcoin also contributes significant economic value by supporting various financial transactions. It doubles up as currency for daily transactions and a store of value, with a potential for substantial future returns. Several companies and merchants today accept Bitcoin as a means of payment for goods and services. It enables businesses and individuals to transact worldwide without external interference. 

Apart from ordinary goods and services, you can also use Bitcoin to trade other cryptocurrencies and acquire wealth in various parts of the world. Like other financial instruments, entities with Bitcoin funds can also use them for trading on stock markets. 

Many corporations and investors have also increasingly acquired more extensive Bitcoin reserves to diversify their portfolios and safeguard their wealth from inflation. Unlike fiat money, the Bitcoin protocol limits its supply, attracting and retaining a higher purchasing power over time. That gives Bitcoin a better resilience to inflationary risks, protecting investors from huge losses. 

Thanks to Bitcoin's enhanced transactional security and transparency, it is also increasingly becoming the currency of choice for charity organizations to raise and distribute funds to their beneficiaries worldwide. That promotes global economic growth and development.  

Increased Financial Inclusion 

Over a third of the global population lacks access to banking facilities, making it extremely difficult for many people and businesses to get help whenever they have financial crises. The inaccessibility to banks means those populations cannot acquire loans and other critical financial services, encouraging further economic turmoil. 

Bitcoin creates better opportunities for the financially impoverished populations to access capital and transact more conveniently. Bitcoin runs on a decentralized network, enabling businesses and individuals to seamlessly move money across international borders. Bitcoin users don't require bank accounts or money processors to transact. Instead, anyone can transact Bitcoin via a smartphone and an internet connection. 

Bitcoin enables even the unbanked to send and receive money internationally without going through the banks or money processors. That impacts increased capital flows across the globe for personal use and investments, promoting economic development. 

Overall, Bitcoin has unique benefits and risks. However, it generates significant economic value through robust money-making opportunities, widespread real-world uses, and enhanced financial inclusion.

 

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