Global remittance costs are high for migrant workers sending money home (an average of 7-12%). Bitcoin can eliminate the need for intermediaries like Western Union or PayPal, lowering transfer fees to around 1%. Meanwhile, if you plan to join the trading trend, you may use the official bitcoin trader to ensure that transactions are hassle-free.
Bitcoin offers an alternative financial system that runs solely on software code, has no physical form, and exists only online, not being installed in any central bank or country’s economy as gold reserves are (among other things).
Bitcoin is a new business method that cuts out the mediators, reducing transaction costs. The value of this network is not derived from anything more than it is a secure means of conducting trade and financial transactions online without the need for an intermediary.
The bitcoin network has created an ingenious system based on cryptographic proof instead of trust, solving the problem of how to get around double spending and fraud in digital cash systems. Transactions are secure and irreversible through encryption.
The system is decentralized and therefore fully inclusive on an international scale since no central authority controls it. It’s open source, transparent and neutral, offering equal opportunities for all. Let’s discuss the market size, trends, and benefits of bitcoin.
Market Size of bitcoin:
Bitcoin has a market size of $1 trillion. It has grown by over 750% in the last year. The digital currency’s market capitalization, or the total value of bitcoins in circulation, is $880 billion.
Trends of bitcoin:
The value of the Bitcoin monthly volatility is 18.7%. The standard deviation is 20.7%. The annualized volatility is 22.3%. Return on investment is 204%, while the risk premium is given bitcoin’s volatility and beta, or risk-adjusted return, and is only 3.2%.
Market benefits of bitcoin:
The low transaction cost of Bitcoin has made it an ideal means of making international money transfers and a store of value to pay for goods and services online. In short, bitcoins are a way of making transactions anonymously; let’s discuss all the benefits of bitcoin in detail.
1. Bitcoin is a great investment vehicle:
Bitcoin is a digital currency that has grown in popularity over the past several years. Since 2009, it has grown from $0.0001 per bitcoin to over $1,000 per bitcoin in 2014. People have become interested in digital currency due to its price appreciation and the interest of merchants in accepting bitcoins as a form of payment.
2. Low Transaction Cost:
The most significant benefit of using bitcoins as a payment method is its meager transaction costs because it hardly has any fees attached to it, unlike traditional credit card companies or other online payment systems available today, which charge more than 5 percent per transaction.
3. Zero-Cost Transfer:
Another benefit of bitcoins is that they let people send and receive money worldwide at no cost. Sending and receiving bitcoins is very easy compared to traditional bank transfers, which have high fees for sending money abroad.
The transaction flow completely bypasses the bank or other third-party service. It provides extra security when making transactions because there are no middlemen who can expect to be paid for their service, unlike other services that take a percentage of each transaction they process.
5. Easy international transactions:
Also, bitcoins are easy to use for international transactions as no banks or third parties are involved. There is no censorship in the bitcoin network, and there is no way a transaction can be blocked or reversed. No government or bank can stop a cryptocurrency transaction, freeze an account or restrict fund movements. They can only shut down bitcoin entirely by turning off the Internet altogether.
People expect that transactions will be completed when transferring money, but this isn’t always the case when we send money through banks or other financial institutions. For example, it usually takes 3-7 days to complete an international transaction, but in bitcoin, the transactions are usually processed within 5 minutes.
Summary:
Bitcoin is the fastest-growing currency today because of its ease of use and safety. As a result, it is gaining more market share. It’s a form of free market money which means any central bank or government does not control it. It is also a great investment vehicle to purchase goods or services from merchants accepting bitcoin as payment.
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