Bitcoin is often looked upon and talked about with the term “digital gold”. With bitcoin prices floating between the 50 and 60 -thousand-dollar mark per unit conversations have been had about how one day this cryptocurrency could end up replacing gold, the precious yellow metal as a go-to safe haven investment. With industries all across the business boards such including online sports betting sites all using bitcoin as one of their accepted currencies for their fans to bet on NFL games, could we be on the way to the proper establishment of cryptocurrencies such as bitcoins as one of the world’s leading options for money usage?
Is Bitcoin here to stay? That is a question that most economists and business analysts have been pondering upon for the past few months with Bitcoin prices already well over their previous all-time high prices that date back to December 2017. At the end of that year this cryptocurrency hit the $20,000 mark. When thinking of Bitcoin replacing gold in the future analysts have made it as easy to understand as to that the functionality of this currency is much more noticeable than passing a bar of gold around for example. It also favors this new currency, the fact that BlackRock Inc. one of the biggest global investment management corporations, has endorsed the usage of bitcoin as a safe step moving forward when it comes to investments. Money transferring companies such as Square and Paypal have also endorsed Bitcoin as a viable form of payment giving it stronger support.
While gold still moves in a steady and strong rhythm in global markets, so does bitcoin and in this abnormal 2020 they have both benefited strongly from the dollar weakening because of the coronavirus pandemic and its effects on global dollar centric economies. Investors from different fields of business still are increasingly viewing bitcoin as the best and most viable alternative to paper, government-backed currencies moving into the future. Investors in all major markets see bitcoin more as a safe haven currency of the future where the risk of profits and losses on these digital assets are more manageable than gold. Rather than be a threat to stability, cryptocurrencies such as bitcoin at the helm are seen as a sign of futuristic exuberance.
When it comes to smaller scale businesses, the normal is still for them to rely mainly on flat currency payments as their main source of income in exchange for their products and services. But that does not mean that cryptocurrencies are not taking a stronger leap into the main economic stage. As time has gone by more and more businesses have adopted the idea of accepting cryptocurrencies such as bitcoin as payments for their products and services. The problem lies in the lack of concrete information from entrepreneurs and business managers as to how to manage and operate such currencies and whether or not this is as safe of a payment method as conventional currencies.
Just as there are skeptics on the subject though, there are also firm believers that have bought into the cryptocurrency hype and live to tell great tales of it. For businesses that use cryptocurrencies as a form of payment it has become increasingly more clear that this method is one of the most if not the most convenient and seamless way to perform any transactions. The acceptance of cryptocurrencies opens businesses up to new markets which only helps to positively bring up reputations, sales and bottom lines.
Another factor that gives cryptocurrencies a leg up to regular currencies with business nowadays is the fact that international trading of this coin can be done without any transaction or conversion fees. Bitcoin for example has the same value anywhere in the world and by using this currency the elimination of a middle man makes for transactions between customers and clients to be quicker, easier and with less costs. Also when it comes to customer privacy, cryptocurrencies work perfectly as transactions with this money alternative offer customers the choice to decide the amount of information they wish to provide when doing transactions, giving customers who value the privacy of their data a leg up on any other payment methods. All and all cryptocurrencies are continuing to grow as the best alternative to paper or plastic money transactions moving into the future for good and solid reasons.
