How Has Bitcoin Changed the World Right in Front of Us

Bitcoin has become incredibly popular in the past few years and is still continuing to gain momentum. It’s a new kind of money that is being accepted around the world — from buses, coffee shops, and retailers to big box stores and pizza shops.

This digital currency is reshaping how we think about money, how we trade it, and how frequently it changes hands. That's not all; bitcoin has changed a lot of other things too.

But how has it done all this? Well, let's find out. In this article, we'll talk about the history of cryptocurrency and describe how has Bitcoin changed the world as well as what it might influence in the future.

History of Cryptocurrency 

The story of cryptocurrencies and blockchain technology is one of the most dramatic narratives in recent history.

Many of us think that cryptocurrency is a modern invention, something that didn't exist to help us make online payments before. But the concept of a more open and transparent financial system goes back to the eighties when institutions like banks had a lot of control over this area. This led to the creation of bitcoin, which is widely considered the first viable cryptocurrency.

Bitcoin's early adopters mainly were computer programmers and technology enthusiasts. Computer programmer Hal Finney was the first person to download the original bitcoin software. He received ten bitcoins in return.

When Bitcoin was first launched in 2009, very few people believed that it could change the world. But not only has it survived, but it is also being used by individuals, merchants, and governments around the globe.

How Has Bitcoin Changed the World 

1. More Convenient and Efficient Payment System

Funds transferring has always been a cumbersome process, especially when it comes to ensuring the integrity of financial transactions. Traditional financial systems are slow and expensive, which means that minors, the poor, and refugees suffer significantly because of these issues.

In today's world, people are looking for more efficient payment systems that cut out the traditional payment processes and allow money to be transferred at an affordable price. Fortunately, blockchain technology has emerged as an inexpensive and efficient solution that could change the future of money.

Bitcoin's blockchain technology and peer-to-peer payment network have provided us with an improved way of transferring money.

Traditional financial institutions are being forced to improve the quality of their services and invest in modern technology to remain competitive because Bitcoin provides a compelling alternative to their services. Customers who use Bitcoin and those who don't both benefit from this situation, as do all members of society.

2. You Can Control Your Own Money

There's still no innovation in the financial sector, especially regarding payments. Before Bitcoin was introduced, people were forced to use too-big-to-fail banks for their payments, along with credit cards which tend to charge too much in fees.

The 2008 Financial crisis or briefly Great Recession led to the downfall of Lehman Brothers and the whole banking industry. One legacy of this financial meltdown was cryptocurrencies, a new asset class unlike any before it. 

Cryptocurrencies such as Bitcoin, Ethereum, and Ripple were built as a solution to the challenges faced by traditional fiat currency. Unlike fiat money backed by no goods, cryptocurrencies are backed by technology.

Bitcoin offers people a way to take back control over their own finances since they no longer need to depend on banks or other financial institutions. As a result, those institutions can no longer play poker with people’s life savings. 

If a global economic crash like the one we saw in 2008 takes place again, it is likely that the people affected will flock to Bitcoin to protect their life savings from another devastating collapse because it is a safe, alternative payment method.

3. Opens New Door to Crowdfunding 

Crowdfunding, the practise of raising small amounts of money from a large number of people to fund various projects, hasn't always had much success. In fact, even now, with multiple crowdfunding websites such as Kickstarter and Indiegogo, it is still difficult for anyone to succeed in the field. As much as it has helped hundreds of people create or complete their projects, some have fallen short of reaching their goals.

However, the truth is that traditional crowdfunding isn’t without its own limitations in terms of geographical restrictions, rules, regulations, and lack of transparency. In other words, it’s not a perfect solution.

That is why an ICO is a viable alternative for entrepreneurs who want to secure funding but don’t want to deal with these limitations.

ICOs allow entrepreneurs to raise funds through cryptocurrencies in exchange for Bitcoin, Ethereum, or any other major ones. Investors then use these cryptocurrencies as a means of financing the startup company.

ICOs avoid a lot of bureaucracy by using cryptocurrencies instead of fiat money. This allows them to attract investors from a much wider area than regulated crowdfunding platforms can reach.

4. It Maintains Accountability Among Individuals and Organisations

Significant advances have been made over the past decade in fighting cyber threats such as hacking and data breaches, but organisations still aren't protected enough because they rely on outdated security solutions. Countries have also taken a proactive approach to the illegal use of technology by anyone. Neither one is enough to protect businesses and countries from the unlawful use of technology. 

This is where blockchain comes into play. The real power of blockchain lies within its security. As more people use it, hacking and manipulation attempts will become increasingly difficult to pull off because the blockchain acts like a decentralised and public ‘defence dust’ around every piece of data or digital asset.

Blockchain technology ensures that government decisions are publicly recorded in an immutable chain of data blocks; this could help expose corruption and make governments more accountable to their citizens. Companies can use the technology to create fully transparent supply chains, ensuring that each and every barrel of toxic waste is disposed of responsibly and so on.

5. Scientific Advancements are Speeding Up

Advances in technology have allowed humans to build increasingly sophisticated tools for scientific discovery. Historically, the rate at which we moved from one scientific era to another has increased exponentially.

If we want to continue fueling our advancements and achievements, it's essential for us to share critical information with each other. 

The blockchain technology underlying Bitcoin seems well-suited to exactly this task. It eliminates the need for significant institutions or corporations to act as middlemen while still allowing them to operate with their own self-interest in mind.

With recent outbreaks of measles worldwide, blockchain initiatives like Nano Vision are becoming more important to assist humanity. It is building a global, decentralised blockchain platform for healthcare researchers to share data, which could be exactly what humanity needs. 

Well, great to know that this project is already here!

6. Bitcoin is a Safer Alternative the Unstable Currencies 

The skyrocketing inflation rates in Venezuela have reached almost unimaginable numbers. Since 2012, after the death of Hugo Chávez, who was known for his support for socialism and communism and market controls, the government, his successor, continued to print bolívar, thus dramatically devaluating the Venezuelan currency. With the insecurity of the Venezuelan economy, citizens have turned to Bitcoin as a safer alternative to the national currency, the bolívar. It might even be fair to say that Venezuela's political pitfalls led them to this cryptocurrency.

The trading volume of Bitcoin in this country has increased exponentially because this digital currency provides people with a better way to keep their money safe.

Though Venezuelan President Nicolas Maduro proposed a 15 per cent fee on Bitcoin transactions as a way to compete with the digital currency, it is unlikely that he will force Venezuelans to adhere to the rule. Bitcoins are so decentralised that such a rule would be virtually impossible to enforce. Amid this challenge, Venezuelans just hop on LocalBitcoins to make over-the-counter trades of local currency for Bitcoin.

7. Taking E-commerce to the Next Level

Bitcoin has been responsible for changing online shopping forever. Since the early days of Bitcoin, the entire e-commerce market has been attracted to its innovative qualities that include lowering transaction fees, smoothening the payment process, fast transaction speed and better privacy. 

Today numerous companies have already started accepting Bitcoin payments, Overstock.com, Microsoft, Reddit, OkCupid, Namecheap, Expedia.com, Wikipedia, and Virgin Galactic are some of those. 

In addition to e-commerce stores and online gambling sites, bitcoin now have space in tourism too!

For some companies, adopting Bitcoin has been a positive decision because it allows their customers to feel confident about shopping online. Bitcoin-friendly companies also like the fact that this modern alternative to credit cards and cash payments does not involve fraudulent or chargebacks. This eliminates the need for complicated systems just to store their client's personal information.

8. Offers New Investment Opportunities

Bitcoin has opened the door to a plethora of investment opportunities. There are now over 23,000 Bitcoin wallet addresses in the world holding a million dollars worth of Bitcoin. And three addresses even contain a billion dollars worth of Bitcoin! Crazy right?!

It's almost unbelievable, but it's true. The number of individuals who are millionaires because of Bitcoin is most likely higher than the media would have you believe.

When Bitcoin hit its all-time high of nearly $20,000 in 2017, many people thought the cryptocurrency was headed for a steep decline. While the price did fall to around $7,000, people continued to regard Bitcoin as a good investment opportunity.

"What I love about Bitcoin is that instead of some rich old guy on Wall Street, young, poor people are the ones getting rich," wrote teenage bitcoin millionaire Erik Finman on Twitter, briefly highlighting the essence of Bitcoin investing.

9. Disruption in Various Industries

It's no secret that Bitcoin and other blockchain-based cryptocurrencies have radically changed the way consumers and businesses think about money. It's also clear that most of these changes are ones that favour consumers. 

Several big banks and credit card companies have already been affected by these revolutionary developments, but several industries have already embraced Bitcoin and its fantastic technology.

Doctors are using blockchain technology to better access and store patient data in the healthcare industry. This allows for faster decision-making in emergency situations, where time is of the essence.

Other industries that have been influenced by Bitcoin and other blockchain technologies include real estate, security, rentals, the legal industry, and education.

In almost every case, the disruption took place for replacing a traditional database with a decentralised database that is distributed across many computers, which continually checks and updates the information.

10. It Is Helping to Achieve Global Consensus

The internet was invented to be a decentralised structure where nobody could control it. That's why the development of Bitcoin and other cryptocurrencies' foundations were inevitable. It took two decades for these concepts to be developed, tested, and proven worthy by the market. And after overcoming all of the challenges and hurdles, the cryptocurrency achieved widespread consensus.

Using the technology, people can now create smart contracts with conditions that cannot be altered once they are set—a process that is fast and cost-effective compared to traditional contracts. Blockchain technology and smart contracts are an unmatched combination that has the potential to change how we do business, from the design of supply chains to how we prove our identities.

Wrapping Up!

From its invention to the current adoption by many leading industries, Bitcoin has brought a lot of significant changes in the world. Every day there are new features, more users, and greater interest in it and its blockchain technology. As its evolution goes on, it will probably change even more the way we think about finance and much more.

There's much else to be said on this topic, but that's something for another time. Hopefully, these explanations have given you a taste of how the blockchain system works and how has bitcoin changed the world.