Question

what is the importance of bitcoin trading?

what will happen if the government use bitcoin trading?

Answer 1

With the increasing popularity of Bitcoins more and more people are getting into the world of trading cryptocurrencies.

There are various advantages and importance of Bitcoins:

1.The freedom to pay is a big advantage in Bitcoin. Let’s say you’re in London and you have a friend in Africa. Sending money to your friend is possible through Bitcoin technology. Since Bitcoin is a form of currency that exists digitally, it is possible to send and receive money anywhere around the world. With Bitcoin, you also don’t have to worry about limitations for transferring money such as crossing borders or bank holidays.

2. Whenever it comes to transferring money, the transparency of information is always going to be a priority. That is another big advantage that Bitcoin has. With its blockchain technology, all of the final transactions become available for the public eye to see Although all the transactions are available for everyone to see, your personal information is hidden.

3. The beautiful thing about bitcoin is that it allows users to be in control of their own transactions which allows your bitcoins to stay safe and tucked away in your digital wallet

4. The Bitcoin, merchants have fewer risks since transactions cannot be reversed, do not carry personal information, and are secure.

Below will be the impact if government uses Bitcoin trading:

1. One important reason for trying to move ahead with a central bank digital currency is to create a payment system that is essentially free for consumers and businesses.

2. Central banks would be able to directly change the interest rates on the currency, meaning it’s incentives for saving and spending would pack a much bigger punch.

3. Giving central banks the ability to aggressively push the economy through control of a digital currency would make a major difference in peoples' lives

4. Lack of Privacy, Cash is anonymous, giving people a certain amount of freedom to spend money without having to worry about explaining their actions.