Question

What are the factors that promoted the use of cryptocurrency by comsumers?

Furthermore, why are governments concerned about the use of Bitcoin?

Thank you :)

Answer 1

Instant Settlement: Blockchain is the reason why there is some interest in cryptocurrency. Ease of use is the reason why there is a strong demand for cryptocurrencies. All you need is a smart screen, an internet connection, and you instantly make payments and money transfers to your own bank.

Accessible: There are more than two billion people with Internet access who have no rights to use conventional communication networks. These people are clued-in to the crypto-currency market.

You are the owner: There's no other electronic cash system where you own your account.

Major financial companies and technology firms such as Intel, Barclays or Walmart have recently invested their time and resources in innovative cryptocurrencies such as Bitcoin and Ethereum. This has contributed to countries with declining currencies adopting digital currency to take the place of depreciating conventional notes. Brazil, Colombia, Turkey and Venezuela are some of those early adopter countries.

Blockchain technology has also allowed businesses to change their way of working digitally. The companies sell their digital tokens for sale through Initial Coin Offers (ICOs). Although many firms raising funds through ICOs are unregulated and lack legitimacy, firms like 1World Online, an existing Silicon Valley business, already have a working product.

Over the past decade, Bitcoin has been gaining interest not just from ordinary citizens but also from governments across the world. Some policymakers believe that Bitcoin may be used to bypass capital controls, may be used for money laundering or illegal transactions, and may be risky for investors.
Still others have raised more structural concerns about the ability of the decentralized blockchain to destabilize or weaken central bank authority or power.

Although the financial crisis gave bankers an even worse image than they already had, there is something to be said for institutions that manage timely, efficient and trustworthy movements of funds and their related record keeping. Then, there is the question of the fees that banks charge for the services they provide. Such payments produce a great deal of money and many jobs in the global banking industry. Without banks, those jobs will vanish, as will the tax revenue created by those banks and paychecks from their workers. In a virtual world even money transfer company will vanish. If everybody uses bitcoin, no-one wants a Western Union or its rivals.