Bitcoin and cryptocurrency have created a huge stir in recent years, with a veritable media frenzy over these digital assets. Part of this attention has been thanks to the extremely volatile nature of Bitcoin’s price. You can check the price of Bitcoin to see these price movements for yourself. Smart traders have been able to profit from this volatility, but the true application of cryptocurrency and its increase in usage is an interesting topic in itself.
Cryptocurrency works by providing peer-to-peer payments and cutting out the need for payment processors and banks, giving people more control over their money. For people in the Philippines and other countries, this means avoiding high banking fees and saving money and time overall. Close to a third of the population in the Philippines now use cryptocurrency, and some believe that the country could become a world leader in Bitcoin adoption.
What is Bitcoin
Bitcoin is the world’s first cryptocurrency and was devised as a way to easily send and receive money without needing to rely on middlemen. The Bitcoin network is completely trustless and can be used by anyone in the world, facilitating fast and low-cost transfers.
It works thanks to a technology known as blockchain, and this tech has also inspired countless other cryptocurrencies. While these digital assets were designed for transfers, many of them have been used as speculative investments, with traders and investments benefiting from the price volatility.
How the Philippines is Leading the Way in Crypto Adoption
According to the latest research into cryptocurrency adoption, around 28% of people in the Philippines use some form of crypto, either as an investment or to send and receive money online. Filipinos tend to be more technologically and digitally aware, with a younger population helping to ensure the country stays current with evolving trends.
However, the main reason for the popularity of cryptocurrencies such as Bitcoin has been that it facilitates easier international payments. A lot of Filipinos that move abroad typically send money back to their families to help them out, as they’re often able to earn more when working overseas. Normally, banks and credit unions would be a popular way to send money, but this can take a lot of time and result in high costs.
Bitcoin allows Filipinos to save money when sending money back home, and it’s often easier and faster to use too. Although it’s often sold on exchanges for cash, it can also be spent in a growing number of businesses that now accept Bitcoin and other cryptocurrencies.
With more and more people in the Philippines now aware of and using cryptocurrency, adoption by local businesses has been increasing. Increased adoption from local merchants can also lead to lower fees for businesses and for the population to benefit from fast and secure payments.
Roadblocks in Bitcoin Adoption
Although there’s little doubt that the number of Filipinos interested in cryptocurrency is growing, the progress made hasn’t been without its issues. For now, the volatility of Bitcoin remains one of its biggest problems. While it’s no doubt attracted attention and led to a large increase in the number of investors, it makes it difficult to use as an actual currency, with large fluctuations in price affecting how it can be used.
In addition, cryptocurrency is a whole new system to learn, and many people around the world are still unwilling to do so. Change can often be very slow, as people are often stuck in their ways. Even if sending Bitcoin transfers is easier, some will always be put off from learning how to do it.
Also Read: Why Is Bitcoin Investment A Successful Deal?