How Bitcoin Has Changed the World Already – Without Mass-Adoption

This means that out of the 7.9 billion people in the world, more than 300 million use crypto worldwide, with Bitcoin being the most common.

Apart from individuals adopting Bitcoin, institutions and businesses have started accepting Bitcoin as a means of payment. After Bitcoin was created, the cryptocurrency was majorly used as a means of private exchange.

However, a few years later, companies like WordPress, an online publishing platform, Microsoft, Paypal, Tesla, Overstock, etc started accepting Bitcoin payments. Out of the millions of businesses worldwide, over 18,000 businesses are accepting cryptocurrency payments.

The rate of Bitcoin adoption compared to the world’s population of those that do not use the currency reveals that the cryptocurrency is just at the tip of mass adoption. However, even with the relatively low adoption rate, the numerous effects of Bitcoin can be felt around the world.

Since its existence in 2009, Bitcoin has been leaving a print on the world economy, both positive and negative. Erol User, the president and CEO of User Corporation, mentioned some of the marks Bitcoin will imprint on the world’s economy.

He said,

“at the moment turning the blockchains a reality and being the main base for all the cryptocurrencies forks; soon, when having infrastructure, consolidating and regaining the dominance at 90%, confirming the supremacy and reducing consistently the alt power.”

The paragraphs below will highlight some of the positive impacts Bitcoin has made on society.

How Bitcoin Has Contributed to the World’s Economy

Here are some of the ways that Bitcoin has reshaped the world’s economy.

Hedge Against Inflation

Central banks all around the world have the power to print additional copies of their country’s currency when the need arises. While such additional printing is done to solve an issue, like the US stimulus checks, it also reduces the value of that currency leading to inflation.

The former chief officer of the Office of the Comptroller of the Currency (OCC), Brian Brooks, explained that by increasing the supply of USD in 2020 by 40%, the dollar is now “a 40% less good store of value than it was a year ago and that is one of the reasons people look to Bitcoin.”

The high inflation rate of fiat currency has prompted many people to adopt Bitcoin as a hedge to inflation. The cryptocurrency is seen as an inflation hedge mainly because of its limited 21 million supply, which is not influenced by its price.

Every four years, new units of Bitcoin are released for circulation and the amount keeps reducing after each halving to prevent it from over circulation, thus increasing the value of the currency.

Decentralization

The word “decentralization” became known in the financial world after the inception of Bitcoin. Traditional financial systems, like banks, are controlled by a central authority that has power over users’ money.

However, with Bitcoin, users can have the upper hand on their money. Nothing like third-party interference in crypto and your crypto funds can be frozen, charged, or collected from you by any authority.

Provision of Job Opportunities

The existence of cryptocurrency also brought about an industry that is made up of personnel that manages and supervise crypto activities throughout the world. Apart from the high returns that have made much richer by investing in the currency, there are crypto companies that provide job opportunities.

These companies include crypto exchanges, staking firms, etc. Opportunities are also open for activities like Bitcoin mining, wallet building technology, crypto trading, asset distribution, software engineering, and smart contracts.

The number of jobs the crypto industry has produced keeps increasing. For instance, from 2016 through2017, the number increased from just over 1,000 in 2016 to over 4,000.

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