In recent months, the significant resurgence of bitcoin has pushed its value to greater heights beyond the expectations of many cryptocurrency experts. While bitcoin continues to take center stage in many global discussions and forums, the main question that most people ask is its potential in economic growth. The following article discusses some of the ways through which bitcoin could drive economic growth. 

Increased Economic Activities 

Bitcoin has inspired an entire industry, impacting the development of various kinds of cryptocurrencies. While cryptocurrencies existed before bitcoin, its success has proven to innovators that, indeed, the concept of digital currencies can work. It has helped to build an industry now valued at over $2 trillion. Bitcoin has prompted the emergence of new cryptocurrencies. It has also created vast business opportunities, including cryptocurrency consultancies, cybersecurity developers, investors, asset managers, and retail traders. 

Today, many mainstream financial institutions, medium and small-sized firms are rapidly adopting bitcoin. Some are securing bitcoin holdings to diversify their investment portfolios, while others have also adopted it as a means of payment. That has facilitated increased economic activities beyond just the cryptocurrency sector. Bitcoin adoption is spreading so fast into all economic sectors, including car manufacturing, banking, retail, and health. 

Convenient Access to Capital 

Inadequate capital access is one of the impediments to economic growth, especially in economic development. Although traditional financial institutions like banks do provide loans, the procedures for getting them usually take time. Those loans have very high-interest rates, which put a heavy financial burden on the recipients. 

Bitcoin could be the key to solving such inconveniencies. As a decentralized currency, people can freely exchange bitcoin and trade it worldwide. Since bitcoin is also a digital currency, money transfers usually take place in seconds. Those characteristics enable people to move money and trade bitcoin quickly without relying on a third party. Many programs and websites, such as  Bitcoin Code, encourage bitcoin use and bring it closer to a global audience. Besides, there are also many platforms today offering bitcoin lending services to individuals and start-ups globally. 

Lower Transaction Costs 

Bitcoin has meager operational costs since the transactions mainly rely on blockchain technology. The transactions do not require an intermediary to oversee money exchange like in fiat currencies. Instead, blockchain technology uses encryptions to keep a clear record of all the transactions in a digital ledger. Besides, there is no minimum requirement, overdraft fees, or account maintenance fees in bitcoin. As a result, bitcoin transaction costs are relatively much lower than those incurred in traditional banking activities. The lower transaction costs for bitcoin users would allow many people and organizations to expand their investments in bitcoin, facilitating economic growth. 

Improved Accountability and Security of Financial Transactions 

Most people have continued to avoid acquiring investments mainly because they do not trust the banks and governments with their money and information. Bitcoin could offer the best solution since the currency is digitized and decentralized. Instead of using third parties to secure transactions, bitcoin relies on blockchain technology that automatically records and keeps all the transactions in a distributed ledger. 

The technology uses key encryptions to store the data in different blocks, making it almost impossible for unauthorized parties to access the network. That could help with the prompt detection and tracking of criminal activities like fraud, money laundering, and corruption. That could discourage such acts, thereby fuelling economic development. Bitcoin and its underlying blockchain technology also ensure that users can conveniently track their transactions and investments worldwide. The improved accountability, transparency, and security of transactions would encourage people to start investing in bitcoin, thus, driving economic growth.

Although Bitcoin needs time to realize its full potential, the above discussion is sufficient proof that it could facilitate economic growth worldwide.