Is Bitcoin Threatening the Global Financial System?

With the recent spike in the bitcoin market, it won't be wrong to think of its threat to the global financial system. Bitcoin has grown tremendously since its launch in January 2009 and has increased in value and number of users. Tech giants like Twitter, Square, PayPal, Microsoft, Amazon, and Skype have invested huge amounts into it and business owners are gradually adopting it as a payment method.

A lot more people are intrigued by the easy and fast transactions made with bitcoin, both locally and internationally. The traditional banks can't beat this, especially for transactions across borders that require a huge amount. Also, transaction fees for bitcoin are much lesser compared to banks.

Given all these advantages, more people are willing to embrace bitcoin, especially considering its track record over the past decade.

Bitcoin Exchanges and Wallets

Bitcoin exchanges and wallets have made bitcoin more accessible and also makes it easier than ever to trade bitcoin. While the exchanges help you trade bitcoin at the best price and make profits, the wallets allow you to store your bitcoin over some time and also gain profits. Most exchanges readily come with a wallet, which makes it much easier for users.

Bitcoin exchanges have evolved over the years and have gotten better over time with the improvement in technology. You can easily invest with Immediate Bitcoin or other high-tech bitcoin exchange and check for important features, especially the security measures in place.

The Price Keeps Rising

Bitcoin might have started pretty slow in its early stages but it has since risen to be the most popular cryptocurrency today. Its market cap as of January 24, 2021, sits at more than 600 billion U.S.

Different factors influence how the price moves and this includes the Supply and Demand of bitcoin, The Press, Increased adoption as a payment method, Increased investments by tech giants, and more. As more people continue to talk about bitcoin, the demand is increased and the price continues to move up since there is a finite supply.

In the past few months, Bitcoin has recorded an all-time high, which increased its popularity. The global financial system is experiencing a move like never before as this digital currency continues to make waves.

This has further propelled the central banks of some countries to take action. The Federal Reserve and European Central Bank, for example, have been reported to risk losing the digital-currency race as bitcoin becomes more popular in the eCommerce field. China is also actively working towards launching a digital currency that strengthens its Yuan currency.

Is there a threat?

The rapid growth of bitcoin is beginning to look like a threat to the global financial system but it's also important to note the volatility of bitcoin. Since bitcoin is not regulated by the government, it is not certain what the future holds. The predictions so far are that the price will continue to grow and central banks around the world will also try harder to protect the value of their currencies.