Airbnb and Uber are two examples of businesses that are changing the way we sleep and travel, but what about the way they have changed the way we pay for these amenities? These two companies operate cashless, as they look to adhere to the desire of making things quicker, safer and inevitably more convenient. Why am I telling you this? Bitcoin has been introduced with those same principles.
Cash you later?
The call for an alternative payment method to cash has been on the horizon for over two decades. Times have changed, and cash is now the alternative payment method for many. Ask yourself when the last time you used cash to pay for your groceries? As humans, we are always looking for more easier and convenient ways to do things, hence the soaring popularity in ApplePay and the revolution of contactless payments.
For decades, many economists have been arguing that cash will be going obsolete, however, the reality is that the 'bank card' hasn't been good enough to replace cash outright. Banks make money by facilitating payments. Believe it or not, the transaction/processing fees of credit and debit cards are one of the highest costs for businesses, sometimes secondly only to salary costs. This is partly why cash as a payment method holds real value, and is not obsolete... yet. Businesses welcome the tangible offer of cash, as they avoid banking fees thus saving them money. But what if something came along that tackled the problem of digital payment fees?
The final nail in the coffin
Bitcoin holds the largest market capitalisation in the cryptocurrency sphere with a healthy $41,387,649,948. To put this figure into context, 56% of nations around the world have a smaller aggregate value than Bitcoin. Bitcoin is becoming larger than many fiat currencies around the world, and its en-route to establishing itself as the global currency used by general consumers.
Bitcoin > Banks > Cash
Many people struggle to come to terms with cryptocurrency as its a relatively new concept. Bitcoin was developed to operate as digital gold and as a cash system.
As of today (May 26th, 2017) 1 BTC is worth £1,932, when comparing it to £293 from January 2016, thats a 559% increase in value in under 16 months. The worldwide perception of the prevalent cryptocurrency is growing in trust and in interest. For example, Peach Airlines (Japanese airline company) have recently become the first company to accept bitcoin payments for flights. It just not just our asian counter-parts who are adapting to the bitcoin craze, companies such as Wordpress, Microsoft, Dell, Expedia and even Subway accept Bitcoin as a form of payment now. It will not be long till bitcoin is accepted as forms of payments for bills, groceries and other day-to-day essentials.
Cut the middlemen
Bitcoins major advantage is that it puts people in charge of their own money. There are no restrictions imposed by a bank, no conversion fees, and incredibly low transfer fees. Bitcoin makes you your own bank.
You no longer will have to pay between 1% - 5% to send your money across the world via a Bank or Western Union. As well as Bitcoin saving businesses a whole heap of money, it will also curb the chances of fraud and identity thefts with its public and private key features. :
- Public Key: This is a key that is for the public to see what address they need to send you money
- Private Key: A combination of letters/numbers and secret keywords which are ever-changing. Use this to send money to people and businesses.
Don't worry, be happy
Cryptocurrency is a concept that many are getting to grips with, this may even be the first time you've read about it, and one things for sure, this definitely won't be the last. Bitcoin was only launched in 2009, and it wasn't launched for no reason. There is a demand for a quicker, safer, and a more convenient payment method. Bitcoin has come to address all those three factors and people are cashing in, maybe you should too?