Bitcoin has already changed the paradigm of the digital economic system. Now it has come to some previously unknown countries to the financial world. For example, this year, some Asian countries like Bangladesh, Nepal, Mongolia, etc., started to use bitcoin in their economy. And if you’re planning to buy bitcoin units visit this link to learn more about it.
How does bitcoin positively affect Asian countries?
Bitcoin is decentralized, which means no government regulation on this currency. Its price is increasing day by day. More and more people are using bitcoin for various economic activities like investment, trading, etc. A new type of business has started in some areas that as cryptocurrency mining. Its transaction speed is faster than other currencies. So it will be easier for Asian countries to adopt bitcoin and its benefits.
Bitcoin Mining:
It’s not easy to start this business, but if someone wants to make a good amount of money, bitcoin mining is one way. Cryptocurrency mining includes solving mathematical problems for creating new bitcoins and verifying previous Bitcoin transaction coins. It is estimated that bitcoin mining will be finished after 2140.
Bitcoin Investment:
Bitcoin investment is the best way to earn more money just by investing in it. Its price increases daily, so its investment amount also increases accordingly. So, if someone invests some money in bitcoin at present, he can get more money in the future.
Bitcoin Trading:
This is one of the riskiest ways to earn money, but the good thing about this is its price fluctuates according to demand and supply. You can also buy bitcoin by trading your other currencies like INR, USD, etc., with it, so you will get more profit when its price increases against other currencies. People can easily buy anything by using bitcoin in those countries economies.
Remittance:
Now, bitcoin has changed the whole scenario of international remittances. It helps to send money across borders with the lower fee price.
Micro-Payments:
Bitcoin is also coming into micro-payments. For example, you can easily fund your pre-paid mobile wallets by using bitcoin. Moreover, if someone builds his own online business to generate revenue for each visitor, it will be easier to get payments through bitcoin because there is no such fee for the transactions.
Points and Rewards:
Nowadays, online marketplaces offer reward points to encourage users to buy their products. Bitcoin is also used as a mode of payment by those marketplaces that want to increase their sales or revenue. For example, companies like Expedia and Rakuten allow people to use bitcoin as a mode of payment.
Public and Private Sectors:
Nowadays, governments and banks are also using bitcoin for different purposes like money laundering and misuse of funds by the public sector banks. But on the other hand, private sectors like e-commerce companies accept bitcoin payments to get more business.
Bitcoin in the mainstream:
Since bitcoin is decentralized and uses a peer-to-peer network, it will be harder for hackers to perform DDoS attacks on the bitcoin network. So it has become more secure than any other financial transaction that uses physical currency.
6 Negative impact of bitcoin on Asian countries
1) As you know very well, bitcoin is decentralized, so there will be no government control on its price. Its price increases, making only the rich get more rich and poor people get poorer because of the high inflation rate.
2) People are using it for illicit purposes like money laundering, terrorism financing, etc., due to a lack of regulation.
3) Bitcoin can be used as a source of income for hackers because one can hack another person’s account and steal bitcoins from there.
4) It has less lifespan, so its prices may fluctuate wildly.
5) If its price decreases, it can create panic, leading to a complete market crash.
6) More people will use it for criminal activities like terrorism financing, drug dealing, etc.
Conclusion:
Bitcoin is a good idea for those with high risk-taking abilities who want to make as much money as possible. But as you know, its demand and supply system works on its own, so there will be no control over money flow in society, which may create panic among people during price falls or drops.