The way we pay and get paid has not changed in a long time. Despite its long history, the method of payment has remained primarily unchanged throughout the last few centuries. However, the introduction of the first decentralized cryptocurrency, Bitcoin in 2009 starting a major revolution of the field. Not long ago, no one would have imagined that virtual currencies could become a reality.
The main reason that caused the appearance of virtual currencies is the advancement of technology. The past few decades have seen an unprecedented increase in investments in technology. Moreover, the trend is particularly visible when we look at the development of the financial industry. It is the sector that keeps adapting to the modern age the fastest. There is even a specific niche of the field that represents the merge of technology and finances called fintech.
Yes, it simply is the combination of two words – financial and technology. It initially emerged in the mid 20th century along with the birth of credit and debit cards. However, as they were not as popular back in the day, the process did not have a name neither was recognized by the wider public. However, as cashless payments became more and more widespread, the tendency of continuous digitalization of the financial industry became more visible.
Cryptocurrency or virtual currency is a financial instrument backed by strong cryptography that guarantees safe financial transactions. Since its launch, virtual currencies have established themselves as secure, fast and smooth ways of payment. They are widespread across the world in almost every field and industry. Naturally, their involvement is more apparent in the financial sector and the economy.
The recent years have seen the value of cryptocurrencies soar immensely. In particular, the biggest success was achieved by Bitcoin, which remains the most valuable and widespread virtual currency on earth. 2017 was the peak year for its success as the cryptocurrency first exceeded the $10,000 mark and later reached $20,000 for a brief moment. The estimates about the overall worth of the bitcoin market change on a daily basis due to the swinging price it has. However, it is said to be exceeding hundreds of billions of dollars in assets.
Many people argue that virtual currencies have lots of benefits in comparison to traditional sovereign ones. Importantly, they are based on the blockchain technology. In simplest terms, the said technology guarantees that the information shared on the network is visible to all sides of the ‘chain’. These sides are computers that are connected to either end of the chain. Thus, cryptocurrencies offer safe, well-recorded financial transactions with reduced risks.
Why are Australian businesses trying to adapt?
As mentioned above, virtual currencies offer lots of benefits. Bitcoin, the most significant of them all is known as a safe way to perform financial transactions of any size. Important is its efficiency. Transaction fees are usually close to zero or much lower when compared to traditional means of banking services. This is particularly convenient for smaller and medium-sized businesses, for which every cent counts. Nevertheless, big corporations can also see major benefits translated into savings by using Bitcoin. Seeing the benefits, a number of Forex brokers in Australia is on the steep rise. More and more companies and interested in adapting their businesses to this new trend.
Its efficiency and convenience are two of the main reasons why an increasing number of companies in Australia are turning towards Bitcoin. However, another primary trait is its discreetness. Payments performed with Bitcoins can be antonyms unless either side of the transaction decides to make it public. The only visible part of the financial operation is the Blockchain ID, which is not enough to detect anyone’s identity. Thus, Bitcoin transactions are almost impossible to identify. However, as blockchain ID is present, they are still easily traceable if needed. Relevant governmental structures can use the information available within the transaction to chase down needed sides of the operation. However, doing so without proper authority still remains close to impossible. This fact makes the cryptocurrency one of the safest ways to perform financial operations both for small and big businesses.
Another important factor is the accessibility and mobile payments. Virtual currencies, particularly Bitcoin are some of the most accessible means of financial instruments. Since they are located entirely on the web, geographical barriers are easily overcome. As a result, individuals from some of the most rural regions can access Cryptos without having to go somewhere for any purpose. This is particularly important for a large country like Australia, where almost all of the major urban areas are clustered in one part of the nation. As a result, the rest of it is barely populated. This causes a lack of physical financial services in some rural areas. This is when Bitcoin proves especially useful.
In fact, Bitcoin is quite widespread in Australia, unlike in other parts of the world. Many nations struggle to push for much-needed legislation that would better regulate the use of cryptocurrencies. This leads to many big corporations in some countries refusing to accept or use virtual currencies, creating a major obstacle. Luckily. Australia is not one of them. The general public in the nation adapted surprisingly well to the new financial trend. According to the Independent Reserve Cryptocurrency Index (IRCI), 17% of Australian nationals own cryptocurrencies. This rate is astonishing even in the year 2020.
As the world of technology continues to develop, cryptocurrencies become more and more widespread around the world. Some nations are even starting to officially recognize them as equal means of currencies as other sovereign ones. This will likely lead to mass adaption around the world sooner or later. Australia is leading the way in the industry and companies are not lagging behind either. Bitcoin offers more efficient and convenient services and businesses across the nation are making the best use of it.