The following report will highlight the benefits and challenges of Bitcoin. In addition, it will provide a brief overview of the current status of bitcoins in Australia and a theoretical analysis of how bitcoins could impact the Australian telecom industry. Visit the Bitcoin Circuit for more information on bitcoin trading.
The use of virtual transactions has risen due to the advent of altcoins such as Bitcoin. With the surge in cryptocurrency popularity and transaction volumes, there is a demand for more blockchain technology infrastructure to be installed.
Seven ways how telecom industry of Australia affected by bitcoin
- Bitcoin as an alternative payment method. The immediate benefit of bitcoin on the telecom industry is its inclusion as a new viable payment method. Bitcoin allows consumers and businesses to make payments at low cost and in real-time, anywhere in the world.
The emergence of bitcoin has disrupted legacy business models which aren’t built around its unprecedented business opportunities.
- Efficient cross-border payment method. Bitcoin can be cheaper than other forms of international remittance, as it circumvents the legacy system currently in place with bitcoins; sending money internationally is cheap. In addition, bitcoins are divisible up to eight decimal places to serve as an efficient currency for small payments like tips and microtransactions.
Currently, bitcoin is not easily obtainable in Australia, especially for the unbanked, but this could change over time with more awareness.
- Bitcoin mining provides high security by ensuring that all transactions are verified autonomously without central authority or banks, making it extremely difficult to hack.
This also decreases the cost of security and increases access to financial services for those deprived of such resources.
- Bitcoin ATMs will help spread bitcoins in Australia faster, positively impacting the telecom industry by increasing awareness and usage, further legitimizing it as a currency accepted globally.
In addition, the introduction of bitcoin ATM will also help reduce the time in which bitcoins are spent on fiat currency, further eliminating market fluctuations.
Finally, it is essential to note that there are no other costs to holding onto Bitcoins apart from mining and these processes.
- The distributed ledger technology (blockchain) allows the telecom industry to save significant amounts of money by sharing transactions across several computers, which reduces duplications and errors. This will further increase revenue streams for the telecom industry.
- bitcoin provides secure storage of value in times where economic uncertainty is high; it may become an attractive store of value for the telecom industry
- The ability to use bitcoins seamlessly across borders without additional fees will allow the Australian telecom sector, especially its smaller companies, to compete with global players in terms of pricing or services offered.
Currently, bitcoin is not easily obtainable in Australia, which restricts market access. Still, more and more consumers and businesses will become aware of bitcoins and make use of them over time.
In addition, the emergence of new players who may provide better pricing or services allows for a more competitive market which can ultimately benefit the end-user by providing innovative products and solutions with lower prices.
5 Negatives of bitcoin that affects Australian telecom industry
- As cellphone network operators are moving towards the Internet protocol system or Ip networks, there is a fear that telecom companies may become less relevant if bitcoins are used for small transactions.
- The need to have specialized hardware to mine bitcoins is out of reach for the average user. Instead, they will need to rely on a third party or purchase bitcoins from an exchange. This will reduce the influence of bitcoin as a decentralized peer-to-peer network.
- There is a fear that if there was a significant drop in demand for bitcoin, it might hurt miners’ revenue, affecting their operations and the availability of the bitcoin network for users.
- The bitcoin network cannot process all of the transactions on the blockchain, which could lead to delayed or incomplete transactions.
- There is also a risk associated with buying bitcoins via exchanges. If their operator’s exit scam, then there is a fear that users may lose their bitcoins.
Conclusion:
In conclusion, bitcoin can positively impact the telecom industry in Australia. However, some risks may affect its adoption and existence, which means it is essential for Australian businesses to monitor changes within the bitcoin environment to react accordingly to any new developments.
