The Major Impacts Of Bitcoin On Global Finance

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INTRODUCTION

Bitcoin is basically a decentralized based digital currency created in the year 2009 by an anonymous individual or group of individuals, using the pseudonym Satoshi Nakamoto, the Bitcoin operates on a peer to peer network and does not require the need for intermediaries like banks, the bitcoin transactions are recorded on a public ledger called the block chain whoose security is ensured through cryptographic techniques and protocols.

The cryptocurrency Bitcoin was created with a program and protocol that allows it to only ever be able to reach a total capped value of 21 million coins, this constraint on its supply allows Bitcoin to maintain scarcity and long term value preposition, allowing it to be able to serve as a store of value and safe space or haven against inflation.

ITS MAJOR IMPACT

Since the creation and launching of Bitcoin in the year 2009 with all its outstanding features like decentralization and its implementation of the block chain technology, it has been able to transform the financial system of the world, in quite a number of ways some of which i will be explaining in this post.

• FACILITATES DECENTRALIZATION

Bitcoin operates on a decentralized network, this basically means that they are free from any form of control by any central authority or governmental body moreover, this decentralized nature of the Bitcoin network has the potential to get the attention of the unbanked or underbanked and their adoption as a result increasing financial inclusion.

Additionally, people who are living in regions or parts of the world with limited or no access to traditional banking infrastructure and set up can take full advantage of the cryptocurrency Bitcoin for the purpose of storing value and carrying out financial transactions, either sending or receiving funds.

Bitcoin also facilitates borderless financial transactions and as a result of this its borderless nature, anyone with a phone or computer and an internet connection is able and allowed to access and take part in the Bitcoin's financial ecosystem.

• RESISTANCE TO FINANCIAL CENSORSHIP

No cap, Bitcoin was built in a way that it addresses most of the underlying issues of the traditional financial system as a result it offers its users financial sovereignty, enabling and allowing them full control to their funds and assets through the application and implementation of cryptographic signatures.without reliance on any kind of intermediary and third parties.

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Therefore this resistance to centralization and censorship makes Bitcoin more appealing and preferable catching the attention of those who lives in regions where they are been oppressed by the authoritarian system of financial governance and policy making and seek a breathing space from unnecessary surveillance and scrutiny of their finances.

Bitcoin's property and ability to resist the threat of censorship helps to empower individuals and users of the Bitcoin network to enjoy greater control and freedom over their financial decisions and transactions.

• SERVES AS AN ALTERNATIVE SOURCE OF VALUE

Bitcoin since its inception, has emerged as a viable and logical alternative for storing and securing value, especially in times and periods where the traditional or fiat currency is facing or going through threats of inflation or economical instability seeing as Bitcoin is programmed for this very purpose of fighting against currency devaluation and economic uncertainty.

Additionally, institutional investors and individuals alike have come to adopt the view and term of Bitcoin being the digital gold, seeing as Bitcoin has earned the status by showing its correlation with the physical asset gold and how it preserves wealth over the long term.

The growing and increasing adoption of Bitcoin as a viable store of value shows and reflects the trust and confidence users have in bitcoin as a real asset in this our financial world.

• INNOVATION IN FINANCIAL SERVICES

Bitcoin's emergence and introduction has help to accelerate development and innovation in financial services, because of its success in the financial world it has motivated and inspired the development and creation of new digital assets, cryptocurrency and platforms that leverage and is based on the block chain technology.

The creation of services and platforms like the Cryptocurrency exchanges, digital asset custody services, decentralized finance (DeFi) protocols, and non fungible token (NFT) marketplaces are few examples of the innovation and transformation inspired by the introduction of the Bitcoin ecosystem.

Additionally, these platforms helps to facilitate activities such as trading, investing, lending, borrowing, and earning interest on their digital assets as a result, allowing users the opportunity to take part of the expanded scope of financial services made available in the digital economy.

CONCLUSION

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In conclusion, Bitcoin over the years since its creation has had very profounding impact on global finance, effects whoose importance could not possibly be over stressed seeing as it is reshaping traditional financial system and accelerating innovation in the services they offer.

The bitcoins impact on the global finance ranges from promoting financial inclusion and decentralization to serving as an alternative store of value and driving or fast tracking regulatory evolution, Bitcoin's influence and effects extends far beyond its role as a digital currency which ensures scarcity and hedges against inflation.