The Rise of Bitcoin in our Global Economy

March 19, 2015

9:00 am

Bitcoin is the first digital cryptographic currency (cryptocurrency) that has really taken hold around the world. While several other attempts had been made before Bitcoin, they either never worked correctly or never gained widespread use. Bitcoin, on the other hand, has a deep and solid structure, has been adopted by individuals and businesses around the world and has enough momentum to become the first truly international currency.

Bitcoin for Purchases

Bitcoin is easy to use for both payers and payees, and as individuals, companies and nations begin to embrace the currency, it is filling a niche that has been underserved for decades. According to PBS Newshour, a study conducted in 2013 shows that 10 percent of people in the U.S. do not use banks and nearly 17 percent are underbanked, which means they use alternative financial services in addition to bank accounts.

Both of these groups, the underbanked and unbanked, are increasingly turning to mobile technologies to fulfill their needs for financial and payment services, and Bitcoin is a convenient alternative currency for mobile platforms. Mobile Bitcoin wallets are easy to download and operate on Android and Apple devices, and one of these is the Pheeva Bitcoin wallet.

Pheeva is unique among its competitors because it allows consumers to spend Bitcoin currency on products and services sold by the hundreds of companies on Gyft.com. Among them are big-name retailers, including iTunes, Amazon, Best Buy, and Starbucks. Even if an individual does not have a bank account, he or she can make a cash deposit at a local bank branch to buy Bitcoins. The Bitcoins are then sent to his or her Pheeva wallet and can be spent online at the participating stores.

Some of these online retailers and service providers even offer incentives and discounts that can save buyers up to 20 percent on their purchases. One such service is Fold Coffee, which gives you a 20 percent discount when spending Bitcoins at Starbucks. This is even more powerful than a credit card, and there are no credit history requirements.

Bitcoin for Remittances

Another way Bitcoin is commonly being used today is for cash remittances. Other financial services providers, such as Western Union, charge fees ranging from 5 percent to 10 percent for these services, but those that use Bitcoin, such as BitQuick.co, only charge users 2 percent to convert standard currency into Bitcoins. You can then list the Bitcoins for sale at 2 percent above the market rate, which cancels out the fee. The remittance is cheaper than using cash, and it is much faster.

In addition, Bitcoins sell at a much higher rate than they do in other countries. For instance, they sell at about 6 percent higher in Brazil than they do in the U.S., which means it is possible to make money on every transaction. This is perfect for migrant workers who are sending money to their families back home. In addition, there are no restrictions such as those in Venezuela that prevent currency from entering or leaving the country.

Bitcoin is becoming more popular every day, and once consumers begin to take advantage of its benefits, it will grow into a powerful, global currency that is safe, secure and above government control.

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Zaid is a leading expert on data driven digital marketing; focusing on analytics and actionable insights from data. Founder of PPC Mastermindsa ppc management company, Reputation Trojan, an instructor at SEO Optimizers Training Center, and an organizer of Los Angeles Google Analytics business insights training MeetUp in Los Angeles, California. He has spoken at multiple conferences and has helped countless people in the digital marketing space.

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