Hopefully this is not the first time you have heard about Bitcoin. But are you wondering why there seems to be quite a buzz worldwide about this new form of digital money or what we call cryptocurrency?

Let’s begin by imagining a new globalized world where you can send your money to anyone, anywhere in the world within minutes! And you do not even necessarily need to open a bank account to do this. In simple terms, it means no banks or governments hold the power to dictate what you can or cannot do with your own money.

For example, just think about how convenient it would be if you can quickly send money directly to your children who are studying abroad without needing to worry about foreign exchange rate. Or perhaps you have relatives who are settling down in a foreign country and they need some emergency funds. Bitcoin can help in such cases and you do not need to involve the bank.

The impact of Bitcoin in the world is actually a lot more profound that just a faster means of sending money across international borders. In fact, Bitcoin is already revolutionizing the global financial system.

In this beginner friendly article, we will not dwell too much on the technical aspects of Bitcoin’s impact on the global economy. For common people like you and me, we are more concerned about practical matters like wealth generation, saving up for retirement or fighting price inflations that is now causing prices of goods and services to skyrocket.

Before we begin, let’s take a look at today’s Bitcoin price. You can also use a Bitcoin calculator below to plan your budget if you decide to purchase Bitcoin later on.

Bitcoin Price Today (Ringgit Malaysia)

Bitcoin (BTC)

Price

296,037.61

Bitcoin Price Chart (US Dollar)

Bitcoin Price Calculator

The Birth of Bitcoin

Bitcoin was introduced in 2009 by an entity known as Satoshi Nakamoto. We refer Satoshi as an entity because until now, no one is able to absolutely prove whether this entity is an individual or a group of people. Satoshi’s idea may sound simple but it is actually decades of hard work behind the scene before it became a revolution.

As we have seen in past economy collapses, our world desperately needs a new kind of global money that cannot be controlled by any government or banks. Thus, this money must be able to be transmitted from peer-to-peer without any middleman. In other words, this means anyone can directly send any sum of money to another party without needing to trust an authority, typically a bank.

Understanding Bitcoin and its vast potentials can be quite fascinating even if you’re not tech-savvy. We won’t be able to extensively cover all the wonderful things about Bitcoin in this brief article but it should be sufficient to get you started. To be fair, as you gain more understanding about Bitcoin, you would surely also come across numerous criticisms against Bitcoin, which you might also be interested to read after this.

Bitcoin’s Journey To Stardom

This story highlights how Bitcoin’s value has exponentially surged over 12,700,000% since its inception in 2009. Even the value of a typical urban house does not appreciate that much in comparison. By 2017, Bitcoin hit a milestone of reaching $20,000 per bitcoin, which is believed to have been attributed to a single holder. The price volatility of Bitcoin is just one of the factors that make it such an exciting digital asset to invest in. Its value can surge astronomically in a day but on the downside, you can also expect it to dramatically crash. Nonetheless, over the years, Bitcoin has managed to recover from all crashes.

Did you know Bitcoin is now one of the best performing assets compared to traditional assets like gold, silver and real estate? Bitcoin’s dramatic increase in value is in contrast to many government issued currencies that are now suffering terribly from decreasing purchasing power.

In 2010 when Bitcoin was pretty much unknown to most people, a programmer famously bought two pizzas for 10,000 bitcoin. At that time, this was equivalent to just about $30. If the owner of that pizza shop kept all those bitcoin, it will be worth hundreds of millions of dollars today! To commemorate this first real-world transaction using Bitcoin, Bitcoin holders around the world now celebrate ‘Bitcoin Pizza Day’ on May 22.

At the time of writing of this article, Bitcoin’s value is hovering above $70,000. This dramatic increase in value in a relatively short time quickly caught the attention of mainstream media and everyday people, sparking a global conversation about digital assets.

Why Pay Attention To Bitcoin

In less than three decades, the Internet has permeated into every aspect of life. Henceforth, you can be quite certain that any emerging Internet technology will eventually impact your life, and Bitcoin seems to be one of them that is on the verge of becoming a global focus.

In the early 2000s, most people ignored the multitude of opportunities from the advent of the Internet. Everybody then were busy posting letters, sending faxes and writing cheques. Even Internet banking was not mainstream yet and smartphones were pretty much non-existent. Digital technology did not really impact life that significantly as right up to around post 2010, most people assumed that keeping a steady full-time job was sufficient to enjoy a comfortable life for many years.

However, as we are all aware now, pretty much all goods and services seem to cost 300 to 500 percent more compared to just 10 years ago. Everyone is annoyed by rising retail prices and stagnant wages. Furthermore, job competition is more intense than ever and now, your fate in the workforce seems to be determined by artificial intelligence.

At the end of the day, people still like to spend the money that they worked so hard to earn. However, the money that is controlled by the governments and banks are just not fulfilling the people’s needs if our purchasing power keeps on decreasing. Bitcoin on the other hand seems to offer a viable solution to this nagging problem.

Revolutionizing Financial Markets

Needless to say, our world runs on money. So, it is important to understand that Bitcoin is more than just a digital currency because it holds the potential to revolutionize the entire global financial system. Here’s how:

• Decentralization:
  Traditional banks are central authorities that control money flow but Bitcoin operates without a central authority. This means no single entity controls Bitcoin, making it more democratic and potentially more resilient to financial crises.
• Lower Fees:
  Sending money across international borders can be expensive due to various remittance fees and commission typically charged by banks. Bitcoin allows for international transfers with minimal costs, making it a much cheaper alternative, especially if you need to transfer large sums of money.
• Speed:
  Traditional international financial transactions processed by banks can take days to complete, where as Bitcoin transactions can be completed in minutes! Just imagine how wonderful it can be if you can even settle the payment for a new house with much less paperwork hassles.
• Financial Inclusion:
  People still do not have access to banks in many parts of the world. Bitcoin can provide these individuals with a way to participate in the global economy as long as they have secure access to the Internet.

The Road Ahead for Bitcoin

Bitcoin is still a relatively new and evolving technology despite its immense potentials. Its price can be very volatile, meaning the price can go up by hundreds or even thousands within a day, making it a speculative asset. This is probably one of the reasons why most people are still hesitant to invest in this asset. Many people are resistant to change or taking on risk, which lead to a false sense of security of holding on to fiat money (i.e. money in the bank) that is rapidly decreasing in value.

Moreover, governments and financial institutions are still in intense debate on how to deal with Bitcoin. Some see it as a threat to long standing systems that form modern civilizations while others see it as an opportunity.

As regulations become clearer, more people are expected to be motivated to adopt Bitcoin and cryptocurrencies. As demand for Bitcoin increases, we can thus expect its value to increase further since its supply of 21 million is strictly fixed.

People with progressive mindsets are beginning to change their minds about leaving their money idle in banks. Some people are even moving out of real estate investment in favor of Bitcoin. After all, real estate requires constant maintenance and skilled repairmen demand high wages that erode into profits. Let’s not forget too that a landlord needs to deal with a multitude of tenancy issues, so it is not exactly that easy going to own rental properties as an investment.

Embracing The Future

The idea of using bitcoin might seem daunting at first for people who are not very tech-savvy but the technology is becoming more accessible to the common person. Another good news is many progressive and advanced countries have legalized holding bitcoin, though in most countries, it cannot be directly used as a legal tender to buy goods and services.

Cryptocurrency exchanges in respective countries are also making it very easy for people to purchase bitcoin through user-friendly apps. At this stage, buying and trading bitcoin is just like learning how to use any other app or website.

If you reside in Malaysia, you can get free bitcoin if you use my unique referral code to sign up with Luno crypto exchange. Click on the button below to find out how.

GET FREE BITCOIN

Conclusion

Bitcoin represents a significant shift in how we think about money and financial transactions. Its journey from a little-known digital experiment to a global financial phenomenon is nothing short of remarkable. Most people believe Bitcoin is still very early in the game and it might take some time for the people and governments to fully understand and embrace the full benefits of Bitcoin.

Those who are willing to embrace cryptocurrency now have a good chance of reaping benefits as long as they are willing to put in some effort and time into learning about decentralized technologies and the inner workings of the crypto market.

As we move forward into a more advanced digital age, Bitcoin could very well become a staple in our daily lives, transforming how we save, spend, and think about investing and saving money.

Latest Bitcoin News