With the rapid pace of global expansion, it is unsurprising that thorny questions and conflicting requirements for documentation abound.
On the other hand, platforms like BitAlpha AI have a robust algorithm that performs the research for bitcoin traders and makes trading easy. Also, it helped many beginners to get started with bitcoin trading.
But today, many organizations seek new technology solutions to deliver transparency and maintain trust in their business chains.
Bitcoin and blockchain are two technologies that have opened up new possibilities for entire industries. If you’re wondering why these technologies have experienced such massive uptake, read on to discover the reasons behind their adoption.
Bitcoin and blockchain technologies are tools designed to unearth what’s been hidden for a long time.
And the implications that follow are truly revolutionary for many business processes. Using these technologies, organizations can address some of the issues in their business chains that seem impossible to solve without involving third-party intermediaries.
There has been a lot of hype surrounding bitcoin and blockchain technology. Still, despite this hype and confusion, supply chain professionals have reason to be excited about these innovations too.
These new tools enable enterprises to bring transparency and increased efficiency into their value chains.
In addition, value chain professionals have never had an easier time communicating with one another via something as widely distributed as the internet.
However, the supply chain is not the mere reason behind the massive adoption of blockchain technology and bitcoin; let’s explore other reasons.
Cryptocurrencies and the diversity around:
Twenty years ago, the internet was just a simple medium of communication. However, it has evolved, and today, you can use it to pay bills, order goods, and services, watch movies, and even invest in cryptocurrencies – among many other things.
The blockchain offers investors a more comprehensive range of options to diversify their portfolios in several investment markets.
In the past decade or so, investors have enjoyed significant returns on their investments in the stock market (S&P 500).
But now that these markets are growing saturated, investors are looking for new opportunities to grow their money. As a result, they’ve begun looking towards cryptocurrencies as an attractive alternative investment vehicle.
Bitcoin’s low transaction fees:
As opposed to other fiat currencies such as USD and GBP that charge transaction fees during every single transaction (even if they do not purchase anything), the average value of bitcoin transaction fees is virtually zero.
It is common for companies to use cryptocurrency payment processors who charge a tiny amount (~0.26%) in addition to the 0.6% fee most exchanges take. With such low costs associated with bitcoin transactions, many industries also find implementing blockchain technology for their daily operations worthwhile.
Fast transactions:
With blockchains taking the form of public databases (i.e., a single global ledger), there is no need to wait for days or weeks before receiving a transaction verification.
Bitcoin is a perfect example of this as it processes transactions at a rate of ~ eight transactions per second, which is extremely fast compared to other traditional means of payment. This swiftness has made bitcoin popular in industries such as online currency exchanges and online wallet providers.
Merchant adoption: Starbucks, Rakuten, and Kroger will accept crypto:
As a result of the increased merchant adoption, it is becoming easier to find items that the user can purchase with bitcoin.
After bitcoin’s public launch in 2009, only a few dozen places in the world accepted this cryptocurrency as a payment method – and even then, these were primarily computer-related products.
Today, several online commerce websites and brick-and-mortar stores accept cryptocurrency payments from customers worldwide.
While many businesses have been holding off on adopting bitcoin payment options due to its volatility (the value of this cryptocurrency has fluctuated wildly since its inception) – many big names in the industry are beginning to change their minds about crypto.
Nasdaq soon launches Bitcoin futures:
According to The Wall Street Journal, the NASDAQ will soon allow bitcoin futures to be traded on its exchange.
The move comes after several other prominent businesses recently began trading bitcoin futures—most notably the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
These reports come amidst rising cryptocurrency interest among institutional and retail investors. And, of course, this number is constantly changing as new digital currencies are released daily.
But, regardless of how you feel about these cryptocurrencies, it’s hard to argue against their growing popularity among investors.
Big banks are taking advantage of blockchain tech:
Some of the largest banks are taking advantage of advances in blockchain technology. Citigroup is developing a system to identify bad actors in the commodities business.
And Goldman Sachs, JP Morgan Chase, and other central banks are partnering to create a trading platform for bitcoin.
One of the most significant factors behind the interest in blockchain technology could be that it offers definite advantages over its alternatives.
Due to its decentralized nature and ability to process transactions at very high speeds, blockchain networks provide several benefits over legacy systems.