Bitcoin, like any other digital currency, has and will have many impacts on currency transitions as we know them.
Obviously, cryptocurrencies are stored, being sold and being bought in a way that is different than how traditional currencies are stored, sold and bought. Transactions using cryptocurrencies are fast and don’t have additional costs.
To use all of Bitcoin’s good qualities, users who invest in Bitcoin are always making little adaptions and compromises to have the best experience and to not lose all of their money. Bitcoins are very easy to lose. If you lose your credit card, your bank can block and prevent someone from using it. If you lose your Bitcoin – for example, your hard drive crashes or someone hacks your wallet, there is no way you can recover it. This means that Bitcoin impacts the very way we store and use our money.
Also, Bitcoin impacts the way you can buy things. You have to trade them for a physical currency before buying something in the physical world. Actually, only a few companies and businesses use Bitcoin as a means of transaction, even in an online community.
Cryptocurrencies, including Bitcoin, are volatile, which means you need to be very well informed before buying or selling them, unlike physical money which has pretty consistent worth in normal circumstances.
Many countries around the world have government regulations or restrictions imposed on currencies, so people can’t send money or use their national currency outside the country borders without being charged extra taxes. This drives many people towards cryptocurrencies, which are not yet under government control.
A negative impact of cryptocurrencies anonymous and decentralized nature is their misuse for illegal activities. This means Bitcoin could result in a rise in cybercrime. Bitcoin could be used for money laundering, purchasing weapons, drug trafficking and tax evasion with little danger of consequences.
In conclusion, Bitcoin impacts not only the way money is used but has some long-term impacts that should be noted. It can impact cyber-crime on the one hand but it also opens gates for new types of markets that are not controlled and have no transaction costs.