It is clear that cryptocurrency, and Bitcoin, in particular, have become too big to ignore. We’re no longer talking about whether crypto can catch up with fiat currencies but how long will it take before it surpasses them.
But cryptocurrency has its problems, too, such as volatility and lack of regulation. Still, blockchain technologies and cryptocurrencies have made a significant impact in unexpected ways.
If you plan to create a free Bitcoin wallet and start buying coins, here are several examples of how digital currency has changed the world.
Bitcoin Became Legal Tender in El Salvador
One of the most fascinating events is that Bitcoin has become legal tender in El Salvador. The Central American country is the first ever to issue this status to the oldest and most popular digital currency.
This decision by the El Salvadorian government requires all businesses to accept Bitcoin as payment, no matter how they feel about it. Furthermore, citizens will download a free Bitcoin wallet app that will contain £22 in Bitcoin.
The excitement over this decision has prompted Bitcoin supporters worldwide to buy the same amount in coins to help boost its value. Bitcoin becoming legal tender anywhere is huge news.
It has made many Bitcoin users wonder which country will be next. While Bitcoin is still banned in some places, others are wholeheartedly embracing it.
This event could set a major precedent. That’s why it’s essential to monitor the potential impact it may have on the future of Bitcoin.
Cryptocurrency Is Changing the Social Media Landscape
One of the greatest appeals of cryptocurrencies is that they’re decentralised entities. A single regulatory body doesn’t exist, and a consensus decides everything that happens in the system.
This particular advantage of blockchain technology poses a potential solution to a problem created by big social media platforms. The censorship, content demonetisation, and lack of data protection for users have been controversial subjects in recent years.
As a result, some companies have taken the Bitcoin model and decided to build decentralised social media platforms. They’ve yet to garner a large following, but it’s almost certain that users will gravitate towards platforms offering more freedom in the future.
Meanwhile, even social media giants such as Twitter are embracing Bitcoin in creative ways. Recently, Twitter announced that it would enable a feature that allows creators to receive tips in Bitcoin. A few short years ago, an integration like that would have been inconceivable.
The Transformation of E-Commerce by Bitcoin
There are so many benefits to shopping online, and convenience is at the very top of the list. However, even now, some shoppers are hesitant to use their personal information and credit cards to pay online.
Offering Bitcoin as a payment option has made the process safer for both shoppers and sellers. As a buyer, there’s less concern about fraud. As a seller, you know you’ll get paid, given that there’s no such thing as a refund in crypto transactions.
However, one of the most relevant ways cryptocurrencies have changed e-commerce is by providing more opportunities for international businesses. The increased security and lower fees are also game-changers, especially for smaller companies.
Cryptocurrency Could Bring Greener Future
It might be confusing to think about Bitcoin and cryptocurrency as anything remotely good for the environment.
Indeed, the crypto-universe has been under a lot of scrutiny about the energy expenditure needed for Bitcoin mining. Many prominent investors are trying to avoid this kind of reputation, so there has been a notable switch towards digital coins that are better for the environment.
But what does that mean, exactly? Bitcoin relies on the Proof-of-Work mechanism for mining which requires tremendous amounts of energy. However, there are less energy-consuming mechanisms, such as Proof-of-Stake, which randomly allocates coins to users.
Every effort to make cryptocurrency greener promotes the adaptability rate. It’s also worth mentioning that even with all the energy-related controversy, cryptocurrency still consumes less energy than the international banking system.
High Hopes for Cryptocurrency
There has hardly been a more polarising topic than cryptocurrency in the past few years. It makes sense, though, as the progression of digital money has been nothing less than astounding.
Many are rushing to embrace it, and others are still unsure what to make of it. Nevertheless, it can’t be ignored. A sovereign nation gave Bitcoin legal tender, and we might expect a powerful decentralised social media platform to do likewise in the future.
Also, given the impact of climate change, we should see increased efforts in making crypto more environmentally friendly.