The global financial ecosystem is experiencing tremendous transformation today thanks to digitization. Life is much easier today as people can make transactions swiftly and securely, using digital assets like cryptocurrency. More financial institutions are embracing the crypto trend and the recognition of its value as an asset keeps growing worldwide.
Bitcoin continues to lead the charge as the world’s most valuable cryptocurrency and its most recent surge has proven that it is here to stay. According to the latest news, BTC hit the $70,000 mark for the first time in history, surpassing its previous high of $69,000 in November 2021. Dave Birnbaum, a Forbes contributor, in one of his market updates labelled this monumental feat as “an extraordinary display of resilience.” He cited that cryptocurrency has constantly proven its ability to thrive in a different economic environment.
How is Bitcoin’s rise in value revolutionising the financial landscape today? Read on to find out.
Fun fact: In 2010 a man bought two large Pizzas for 10,000 BTC tokens.
Bitcoin’s Rise to Superstardom
Bitcoin (BTC) was invented in 2008 by an anonymous person under the alias Satoshi Nakamoto and introduced as a peer-to-peer electronic cash system. Since making its rounds in the digital space, heightened interest in this cryptocurrency and its blockchain technology has grown among traders and investors.
As of October 2023, the average number of confirmed transactions of bitcoin daily was 392,170, according to bitcoin.com, a renowned source for Bitcoin ETF news today. This figure is said to have reached a peak of over 700,000 in September 2023. Data also shows that about 50 million people own the digital asset, as of January 2024. All these statistics highlight the wider acceptance of this cryptocurrency and its relevance in today’s money market.
How Bitcoin is Changing the Game
With the growing popularity and acceptance of Bitcoin, more financial institutions and businesses are integrating this cryptocurrency into their payment systems. A classic example is the gambling industry where more online casinos are accepting cryptocurrencies from players. While the conventional player still loves to check out pages that accept $5 deposits to play their favourite casino game, the demand for crypto deposits has grown tremendously.
Aside from business transactions, more people are also building their stocks, treasuries and investment portfolios with BTC due to its bright prospects. These adoptions are fuelling the legitimacy of bitcoin and making it a staple in the financial world.
Fun fact: The largest single transaction to have ever happened on Bitcoin Blockchain involved 500,000 BTC.
Bitcoin is impacting the world of finance today in the following ways:
- Decentralisation
- Security and Transparency
- Privacy
- Bitcoin Exchange Trade Funds (ETFs)
Decentralisation
The major selling point of BTC and other classes of this digital asset like Ethereum and Dogecoin is its decentralisation. Unlike the dollar and other traditional currencies controlled by the government, there is no central authority regulating the value of Bitcoin. This is because cryptocurrencies operate on a decentralised system known as blockchain, which gives traders and investors a sense of “power” or “control” over their assets.
Decentralisation has also paved the way for other cryptocurrencies to become ETFs, making it easier for investors to buy their stocks. The latest Bitcoin ETF news already shows that this new development is having a significant impact on the crypto market. More people are starting to accept Bitcoin and other cryptos as a legal tender of exchange and for investment purposes.
Transparency and Security
Perianne Boring, CEO Chamber of Digital Commerce — “Bitcoin was created with security in mind. The Blockchain is Bitcoin’s public ledger that records every transaction in the Bitcoin economy.”
The safety and security of blockchain technology also come into play in how Bitcoin is changing the money market. BTC owners can rest safe knowing that nobody can access their assets unless they gain access to their wallet’s keys; a set of random alphabet and number characters. A scattered network of computer systems also helps to verify each transaction, making Bitcoin safe and reliable to transact.
Furthermore, blockchain technology allows users to track their transfers using a blockchain explorer. This transparent and secure transaction system eliminates the concerns of corruption and theft among investors.
Privacy
Because Bitcoin transactions do not require the involvement or approval of third parties like banks, traders can enjoy some level of privacy on their accounts. Wallets use an identifier and are pseudonymous, with no personal details about investors. As a result, bitcoin trading can be done without fear of being tracked by normal people.
Bitcoin Exchange Trade Funds (ETFs)
Bitcoin ETFs are changing the financial market significantly. Like their traditional counterparts, investors now have the opportunity to buy and sell shares of Bitcoin ETF on the stock exchange market and monitor price movements.
According to ETFs Susie Violet Ward, a bitcoin journalist and Forbes contributor, bitcoin ETF approval news updates could significantly impact the price of bitcoin in the future. Spot ETFs, for example, could indirectly increase the Bitcoin demand thanks to mass adoption and boost the overall cryptocurrency market in the long run. The prospect of this new development has continued to appeal to a wider range of investors because of the convenience it provides. As investors eagerly await more Bitcoin news ETF updates in the future, the cryptocurrency market has the potential to move the global financial system in a positive direction.
Conclusion
Bitcoin’s new high only goes to show the doggedness of the asset even in a generally unfavourable economic climate. While most countries in the world continue to battle economic problems like inflation, bitcoin has shown that it is an asset that can be trusted.
Issues like volatility and the lack of key policies continue to be a major cause for concern. However, the factors driving Bitcoin’s growth and acceptance show that its future is bright.
