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- Eroding trust in fiat currencies like the US Dollar
- Inflation is reducing the values of currencies
- Bitcoin labeled as the best currency for international trade
Bitcoin is a concept that finds increasing acceptance as time goes by. BTC’s rise over the last couple of years has been nothing short of a miracle. Cryptocurrency is finally coming out of the shadows into the mainstream. In the last few months, we have seen many financial entities accepting Bitcoin as a payment mode for its services and transactions. As the acceptance of Bitcoin widens, here are some of the reasons why financial institutions are today more open to accepting BTC as the future currency.
Erosion of trust in fiat currencies
One of the biggest reasons for the increasing popularity of cryptocurrency is the erosion of trust in traditional fiat currency. The US dollar has taken a severe hit, and the world is skeptical if the US can continue paying the bills. Uncontrolled printing of Dollars is not going to end with the pandemic. Bitcoin is gaining more and more acceptance as an alternative currency.
Financial institutions treat bitcoin as Gold
Bitcoin is most popular in nations with high levels of inflation, and the reasons are pretty obvious. As inflation continues to rise, major financial institutions turn towards Bitcoin instead of investing in traditional asset classes like stocks and bonds. Many feel that Bitcoin is just like investing in Gold, and its values are not going to erode like investing in stocks. The finite number of Bitcoin means that there is no scope for inflation.
Instant money transfer
Traditional financial platforms take hours or even days to make a currency transfer. However, blockchain technology enables transfers to be effected in seconds. The digital revolution, which is sweeping across the globe, has made Bitcoin a great alternative to traditional payment processes.
True global currency
Bitcoin and its universal reach make it a valid candidate as a Global currency. The same Bitcoin is valid everywhere regardless of the fact that someone is from China, the US, or even India. The fact that there is only one universal Bitcoin does away with the exchange rate risks. Citi has dubbed Bitcoin as the world’s first choice currency for international trade.
Final Thoughts
The advantages provided by Bitcoin as a payment method have encouraged big financial entities like PayPal, Square, Mastercard, and easyMarkets to start accepting Bitcoin. However, cryptocurrency has not obtained backing from central banks. It is a matter of time before the banks begin adopting Bitcoin. When it happens is still a very tempting question.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
