London becoming the Hub for Bitcoin Advancement
London is quickly gaining traction in becoming a global hub for development digital currency users that includes premium financial institutions such as Bank of England, UBS, Barclays and Goldman Sachs. All these institutions are looking into using Bitcoins to expedite traditional financial processes.
Transparent Usage of Bitcoin
Bitcoin is a virtual currency that can be bought online and can be used as a store of value or for conducting web transactions. The most amazing aspect of this currency is that all the transactions are recordable on this vast spreadsheet that is stored in the cloud and is known is blockchain.
Although the user remains anonymous in blockchain but an exclusive identifier stops the virtual currency from being spent again and again.
Blockchain is the technology that is of keen interest to the banks who believe that they would be able to make the money transfer cheaper and faster if they are somehow able to incorporate blockchain into their traditional banking systems. Another thing that entices the banks is that the decentralised ledger that forms the core of this technology can enable them to eliminate the requirement for central clearing authority.
Huge amount of Savings for the Banks
As per a report released by Santander, blockchain will be able to reduce the infrastructural costs of the banks that are associated with cross border payments, regulatory compliance and securities trading to up to $20 Billion a year by 2022.
George Osborne, Chancellor, has earmarked £10M investment that will be used for Bitcoin research that will help propel the industry further. The plan ahead is a proof that bitcoins are being taken seriously in the market today.
Too volatile to be adopted as a currency
The only problem with this otherwise high potential virtual currency is that it is too volatile. It will only be taken up for mainstream adoption when it becomes more stable.
The developers of Bitcoins hoped to create a virtual currency that is not restricted by central bank affiliations. This currency was introduced by Satoshi Nakamoto 3-months after the fall of mighty Lehman Brothers. It was developed with a sentiment that if you can change the way money works, you can also alter the way power changes hands. Using the virtual currency extensively will take the power away from the central banks and give it to users who actually use the currency.
Owing to its general popularity, bitcoin is becoming less volatile with reasonable spikes and falls that can mean well for the future of bitcoins.