Ask any European and they will likely tell you that they believe cryptocurrencies are here to stay. bitFlyer Europe conducted a study about cryptocurrencies and found that 63 percent of those polled feel digital currencies will be around for the next ten years at a minimum. Ten thousand individuals across ten European countries took part in the study, and what they believe will surprise many.
Cryptocurrencies in General
Digital assets remain popular with consumers even during a deep crypto bear market. Market capitalization declined by as much as $700 billion, but this hasn’t deterred the average person. Individuals in Norway who took part in the survey expressed the most confidence that cryptocurrencies will be around for the next decade, with 73 percent declaring this would be the case. French respondents expressed less confidence, with only 55 percent feeling cryptocurrencies would hold up with time.
Overall, cryptocurrency serves as an established form of payment today. In fact, many forget that Bitcoin has only been around for ten years. It seems much longer in their eyes. The fact that so many believe it is here to stay shows how embedded cryptocurrency has become in society.
Over the past ten years, Bitcoin served as the best performing asset class. It did better than the S&P 500, Nasdaq, and the Dow during the market’s longest bull run. Anthony Pompliano of Morgan Creek Capital is quick to point this out. Surprisingly, those who took part in the survey believe this may not be the case in the coming years.
Men and women who took part in the survey are less confident about Bitcoin when compared to the cryptocurrency market as a whole. While 63 percent believe cryptocurrencies remain viable in the future, only 55 percent feel this is the case with Bitcoin. Experts attribute this lack of confidence in Bitcoin to high-profile, negative media reports.
When reporting on cryptocurrency challenges, such as hacks and investment losses, the media focuses on Bitcoin as opposed to other cryptocurrencies. The first cryptocurrency introduced, Bitcoin receives the most attention. Furthermore, consumers associate this particular digital asset with several negative stereotypes, and they are hard to overcome.
While cryptocurrency maintains a positive reputation, Bitcoin itself continues to struggle to overcome its negative publicity. Industry insiders believe this is in part to the media attention paid to this one digital product. The market’s volatility also plays a role, but the media appears to focus on problems associated with digital assets and attributes them all to Bitcoin. This needs to change.
Expanding the Use of Cryptocurrency in the Future
To ensure the future of Bitcoin and other cryptocurrencies, the industry needs to demonstrate to consumers the benefits of these digital assets and how to employ them in daily life. However, consumers also want to know the drawbacks of cryptocurrencies to make a decision that best suits their lifestyle and preferences. How can Bitcoin overtake traditional currency in the future, or can it?
Overtaking Traditional Currency
Some individuals feel Bitcoin could one day overtake traditional currency. They cite the many advantages associated with digital currency when making this claim. What are some of these advantages consumers need to be aware of?
Digital currency users retain more control over their money. The individual determines how to spend the money, and no intermediary authority has any say in the process, including governments and banks. The assets move through a peer-to-peer network as opposed to a centralized entity. Sending and receiving payments occurs without any approval from an authority or external source. Many users appreciate this, as they wish to keep their financial information private.
Authorities cannot freeze the digital currency, and it cannot be taxed or claimed by a government under any circumstances. Some men and women find they appreciate this for a variety of reasons. Additionally, the individuals sending the electronic payment won't need to provide any identification. The system reviews previous transactions to ensure the sender has the funds necessary to complete the transaction. This differs from traditional currency, which is subject to verification and other processes required by law.
As mentioned above, many digital asset users choose this currency to keep financial transactions private. Purchases aren’t associated with an individual, much like cash purchases, so they cannot be traced to the people involved in the transaction. The system generates an anonymous Bitcoin address specific to the transaction. While these transactions aren’t completely untraceable or anonymous, they add an additional layer of privacy for those concerned about privacy when it comes to their finances.
No Paperwork Required
Individuals of all ages may send and accept bitcoin. This currency comes with no verification requirements. No ID card needs to be provided, users won’t have to show proof of address, and no other documents are needed when digital currency is used. This helps the currency stand apart from traditional bank accounts, as documentation is needed to open an account at one of these financial institutions.
Sending and receiving takes little time and effort on the part of the user. Individuals simply need to download a Bitcoin wallet program before generating a Bitcoin address. In addition, each user determines how many Bitcoin addresses they wish to have. The system doesn’t impose a limit in this area.
Credit card providers frequently hold funds for a period of time before releasing them to a company. They do so in case the customer requests a chargeback. This means a business often doesn’t receive payment for a week or more, and it suffers as a result.
This doesn’t happen when a company is paid in bitcoin. Companies find they receive payment much faster, typically in only two business days. Additionally, buyers benefit as they don’t need to wait for the seller to verify the funds before receiving the purchased product or service. The transaction finalizes in less time, which both parties are certain to appreciate.
Cryptocurrency exchanges typically charge maker and taker fees. The exchange might also impose deposit and withdrawal fees. However, most other fees charged by conventional bankers are eliminated when a digital currency is used. The discarded fees include account maintenance fees, overdraft charges, deposit fees, minimum balance fees, and more.
A user retains the right to include a fee. When this is the case, the transaction receives more priority and therefore gets processed more rapidly. Once the funds have been exchanged, Bitcoins are converted into fiat currency. However, the parties pay less in fees when compared to credit cards and other options.
When a consumer completes a wire transfer or makes an international purchase, fees tend to be imposed along with exchange costs. Fortunately, the elimination of intermediary institutions and government entities in these transactions means these international payment fees remain low. Travelers find the use of digital currency in these situations saves them money. Furthermore, the transfer of digital assets takes little time. There is no need to wait for authorization from an outside party, and other delays are minimized or eliminated.
Paying While on the Go
People live busy lives and need convenient ways to make payments as they go through their day. Digital currency ensures a person can purchase coins whenever and wherever they have internet access. Eliminate visits to a bank or store by using this option whenever possible. In addition, the buyer and seller remain anonymous throughout the transaction. No personal information needs to be shared to complete a transaction.
Serving Those in Need
Many men and women across the globe don’t have access to conventional banking systems. Those that lack this access find they can make a payment without the need for a check, credit card, or another form of payment. Bitcoins allow the person to complete a transaction using the digital currency with nothing more than a smartphone or computer.
Digital assets offer more security for users. These assets aren’t hacked like conventional currencies. As the user’s identity remains hidden, those benefiting from Bitcoin find they needn’t be concerned about targeted data breaches.
No Inflation Concerns
With paper money being printed by governments across the globe, inflation continues to be a major concern for many. This paper money decreases the purchasing power of consumers. As Bitcoins remain finite, with approximately 21 million being the current estimated amount to be created, the threat of excess currency has been minimized or eliminated. Both the buyer and seller benefit in this situation.
No Need to Convert Currency
Individuals find the use of Bitcoin allows them to bypass the need to convert currency. Simply carry a memory stick with you when you travel and use bitcoin to pay for items. The need to visit a bank or other financial institution to convert the currency is eliminated, and there are no fees as the currency works across the globe.
Why Do Many Avoid Digital Currency?
Quite a few individuals remain unaware of Bitcoin and how it works. In fact, numerous business owners refuse to accept this form of payment. However, as more individuals learn about the benefits of digital currency, this should change. This doesn’t mean that bitcoin is the perfect payment method. There are some drawbacks that users need to be aware of when determining if this payment method is right for their needs.
The price of bitcoin remains volatile. Price increases and decreases occur frequently, and this leaves many hesitant to get into the market. Speculators benefit from the price fluctuations, but investors might wish to put their money in a safer investment vehicle. This is a personal decision each person must make for themselves.
The Possibility of Government Interference
While the government cannot take a person’s digital currency, it can ban the use of this financial product within its borders. If this happens, Bitcoin wallets and companies must shut down. This leads to the bitcoins being frozen and they become difficult to access.
Bitcoin isn’t subject to inflation, which is good for the economy. Nevertheless, if a speculator obtains bitcoin, a huge recession could occur. There is no way of knowing whether this will happen, but users must be knowledgeable about the risk. How and why does this occur?
The Bitcoin supply remains limited. Only 21 million will be made available over time. When investors and speculators obtain the majority of the currency, they hold on to it in the hopes of benefitting from limited supply and increasing demand. This leads to a price increase that benefits the speculators and investors but not the average user.
Active development continues when it comes to Bitcoin. Developers continue to find new features, services, and tools that benefit users. They do so to make the digital currency more convenient, accessible, and secure. However, not all users have access to these items at this time. As many businesses in the industry are new, they provide no insurance for users.
When digital currency was first introduced, black markets and money launderers jumped in. They wanted a way to handle money without sharing personal information. Middlemen and intermediaries collected money from one party before transferring it to another using this digital currency network. Certain individuals find this concerning and may wish to look for another currency to avoid dealing with these issues.
In the event a user loses their Bitcoin wallet, all funds in that wallet are lost. There is no way to regain them unless the wallet has been backed up with a phrase code. This remains the only way to recover the balance in the wallet, so users need to take care when handling this digital currency.
This differs from many other payment methods, including credit cards. There is no authority to call to have the wallet canceled, as it operates through a peer-to-peer network. Users must take care to secure their wallets to avoid this issue.
Bitcoins offer numerous benefits for users and a few drawbacks. Overall, many feel digital currency is here to stay, and men and women should learn more about this option to determine if it is right for their personal situation. As Bitcoin was the original option, it remains the best known. This gives many confidence when they are trying their hand at something new. Those who feel it is should get bitcoin with PayPal through xCoins.io. This provider is ready to assist those who want to invest in Bitcoin and makes it easy to do so for all.