If you have every paid to exchange money from one currency to another, you can appreciate the idea behind having a digital currency excepted throughout the world. A few weeks ago, as an example, a simple transaction from Australian or AUD currency to American money or USD currency cost almost $27.
To convert $90.AUD to USD you start deducting the fees for exchanging it to usable currency in your country. Had both parties been using the same coin system they would not have to incur losses.
About Bitcoin: Real Digital World Transactions
Bitcoin is a digital currency that some people are hoping will change the way international markets exchange money. If there was a global payment system that all countries used not only would it cut out many of the fees currently involved but should speed up the time it takes to complete a transaction over the digital world.
Most of the world has a smartphone and could use their phone to complete the transaction at some point in the future is the Bitcoin becomes eventually accepted as a universal medium of exchange.
At present, the public has not gotten on board with Bitcoin. This is likely because of a lack of education about it and the trust issues involved. Planning and implementing a Bitcoin strategy will take time.
For one many people don’t see any real use for a digital money system other than our current credit and debit cards. Lots of people do not have the need to use international wire transfers and money exchanges, so it has not become an issue that they care about since it doesn’t touch their current lives.
As trade on the internet grows this will probably change as people find themselves purchasing further and further from home to obtain the best possible deals. Trust will come as more people share their stories of how it helped them in some way. Word of mouth marketing is the best strategy to get people to accept Bitcoin eventually as a normal way of trade.
In the meantime, companies will continue to try to raise awareness and convince people of the desirability of Bitcoin.
There will remain some who will fight Bitcoin to the end because it threatens their livelihood as they see it. Currency exchanges for one enjoy hefty transfer fees and will fight to continue to be able to charge them. They will find it harder to fight as more companies make it as their mission to change the view of what currency looks like.
Companies like Coinbase see it as their mission to drive customers toward Bitcoin in the hope that the world in time will see Bitcoin as an innovative and efficient way to do business in the future.
Some believe that Bitcoin will help level the playing field of countries that have almost no economy by creating an open financial system throughout the world.
Of course, Coinbase does have another strategy as one of the easiest places to buy and sell Bitcoin they have an investment in its success. Other competition will increasingly become players in this lucrative new business. More markets will open up as time goes on and push for Bitcoin to grow.
What Are Some Of The Things Bitcoin Can Do For Us?
Currently, if you need a wire transfer that is global across another country, you can bet you will pay some hefty fees to accomplish it. For all, you spend to get the money moved it will still take several days to complete the transfer.
Another problem for supporters of Bitcoin is convincing companies to support Bitcoin, to believe it would be more efficient and cost-effective.
Credit cards like banks charge a percentage of the transaction in fees to the merchant for accepting the card and interest to the consumer for using the credit card to pay.
Supporting strategist believes that Bitcoin would be a much simpler and convenient process compared to our current way of handling international transactions and currency.
Some businesses believe that supporting Bitcoin could undermine competition and hurt their businesses and the economy.
Firms that have had an advantage over smaller less successful companies will be hard to convince to open the playing field further by changing the way the market has been doing business for decades.
Others believe Bitcoin is one step closer to giving a new way of regulation and control. Changes to Bitcoin will not come quickly or be easy.