According to Brian Kelly, CNBC contributor and author of the book “The Bitcoin Big Bang”
“Bitcoin is the most important innovation in the history of money.”
This is a huge statement considering that, for many, the bitcoin is nothing more than a speculative fraud.
The power of the bitcoin lies in its technology
In an interview given to Entrepreneur, Brian Kelly made it clear that the power of the bitcoin lies in its revolutionary technology, which can effectively support the financial system. With the blockchain technology, the bitcoin transactions are allowed between two anonymous parties without the need for an intermediary person. Therefore, even if people who are using the cryptocurrency are not actually realizing it, they are contributing to the infrastructure of the new financial system.
The bitcoin is beneficial for small businesses
Brian Kelly sees that the
“Bitcoin is attracting more venture capital at a faster pace than the internet did in its infancy.”
This leaves room to assume that the use of the digital currency by small businesses is beneficial. A small business that uses BitPay saves a lot of money in foreign exchange costs as well as a lot of time that would otherwise be spent to fill out wire transfer paperwork to send the money abroad. This explains why more than 50,000 retailers have adopted the bitcoin at a fast pace.
Risks involved, yet mitigated
Currency fluctuation is the main risk that a business using the bitcoin has to deal with. However, given that online bitcoin platforms convert the digital currency to fiat money on the spot, the risk is mitigated. For any business owner keen to capitalize on the cryptocurrency technology, there is a main rule to remember: as with every new technology, there are potential setbacks. Yet, there is little doubt that the bitcoin is a game changer in the financial services environment given its revolutionary technology and cross-border lending option.
Image Credit: http://www.briankellycapital.com/bitcoin-big-bang