Everyone is talking about Bitcoin nowadays. There isn’t a week that goes by without some breaking news regarding the world’s first and most impactful cryptocurrency. People around the world are starting to understand the basic nature of crypto-coins and become more open to the idea of cryptocurrency as an alternative (or at least an addition) to the money system that we have now.
In one of our previous articles, we’ve already discussed the history of bitcoin and its basic principles of operation. So today we are going to talk about something a bit more tangible and move away from the just-a-theory aspect of cryptocurrency world.
We have decided to give 4 most crucial Bitcoin impacts on our society and their potential prospects and risks.
#1 The Emergence of New Markets & Industries
First and foremost, the Bitcoin has opened a way to the emergence of completely new markets, overseen by nobody. A completely decentralized trade that made possible by cryptocurrency holds a potential to disrupt the current state of economics. Although right now, the entire world of Bitcoin and other crypto coins like Ethereum are isolated from the global trade and exist on a much lower scale, there is a prominent belief, held by many financial experts, that it will not last for very long.
Many ecommerce marketplaces, including Amazon, are currently considering the possibility to allow BTC as a payment option. Furthermore, many large international banks are also working on a project that will allow their customers to trade in Bitcoin, and that will most definitely impact on how bitcoin affects the economy in the future.
#2 Empowering the Dark Web
Not all of the impacts are bright and shiny. One of the largest concerns is the way cryptocurrency can empower the so-called dark-web.
To those of you, who are not too familiar with the term, the dark-web is essentially the section of the internet that cannot be accessed through a search engine, and it takes over 90% of total cyberspace. The access to the dark web can be enabled only through special software like Tor Browser.
Dark web is also the place, where a lot of illegal internet activity takes place. Illegal trade on the dark web is very problematic due to the fact that most money transactions can be traced. Cryptocurrencies, like Bitcoin, allow easy anonymous transactions, which can lead to increase in cybercrime.
For example, quite recently the federal forces have shut down the Silk Road, an online marketplace that allowed narcotics trade. And the currency of choice for the Silk Road was none other than Bitcoin.
#3 New Form of Trade
We all realize that money is a social construct and its fundamental power is our belief in the value. Since Bitcoin is not a centralized currency and no government or bank has a power or record of crypto-coin transactions, which is another way of how Bitcoin could change the world.
Currently, Bitcoin is rising in popularity at unprecedented rates in South America. This was caused by strict government regulations and control of the hard currency. High taxes and high transaction fees have to lead to more people in the region adopting the Bitcoin and other coins as a go-to method of payment.
In addition to that, there are implications by governments that cryptocurrency can be used to launder money with great ease. Cryptocurrencies essentially create new loopholes in the central bank’s operation systems and tax codes. Inability to track economic activities with Bitcoin can very easily lead to amendments in those same tax codes, which will lead to crypto coin regulations on the government level.
#4 Social Changes
The full effect of Bitcoin on the society is yet to be fully realized, and it’s hard to predict to which extend the new form of cryptocurrency will change the way we look at money. The BTC and other crypto-coins are yet to scratch the surface of mainstream economics. However, it is undeniable that it will be changed through the adoption of cryptocurrency and it, in turn, will change the new form of money as well.
Currently, Bitcoin is in the stage of complete uncertainty, since there is a great demand for anonymity, but this same anonymity is what preventing many markets to take Bitcoin seriously.
Exchanges like OneCoin are now implementing Know-Your-Customer (KYC) rules. Which means that in order to complete any large transactions you need to provide personal information, just like with regular money. This is most definitely a conflict of interests since one of the biggest appeals of crypto coins is full anonymity.
It’s not hard to say how much of Bitcoin value is in the world, but its total impact is still a mystery for now. There is no way of knowing how much will change in the financial or political world with a much faster adoption rate of cryptocurrencies. But Bitcoin will most definitely have its effect on the global economy, even if it won’t become a new golden standard. If you want to learn more about Bitcoin mining and cryptocurrency news then check out more articles on Bitmainmasters blog.