Bitcoin’s use in international transactions should continue to increase
Bitcoin’s use as a medium of exchange is continuously moving higher with certain countries accepting it as legal tender. The spread of its use could also lead to it taking over international transactions on the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network.
As blockchain technology continues to mature and develop, new innovations can speed up international transactions. A recent Forbes article noted how it could speed up data movement in the SWIFT network, which already works with fintech firms.
“The Society for Worldwide Interbank Financial Telecommunication (SWIFT) on Tuesday (September 13) revealed a partnership with fintech company Symbiont to provide more accurate data to financial firms through blockchain technology,” noted a Cointelegraph article.
In the past, bitcoin transactions did not have the transaction speed now made possible by the Lightning Network. What the network essentially does is introduce transaction activity that can take off the traditional Bitcoin blockchain, thereby significantly increasing the speed of transactions whether they are domestic or international.
“As long as the source country has the liquidity in a fiat/Bitcoin market to allow someone paying to buy it, and the destination country has enough liquidity for the recipient to sell it, Bitcoin is a perfect tool to process the international payment with minimal slippage/fees and settles it within a few blocks,” noted a Bitcoin Magazine article by author “Shinobi”. “Add the Lightning Network to the picture and it can be decided in seconds.”
Gain exposure to sustained growth via Futures
As bitcoin grows in popularity as a medium of exchange, regulatory measures are still necessary to strengthen the cryptocurrency market, especially in the eyes of regulators such as the Securities and Exchange Commission (SEC). Until then, investors may still be hesitant to invest directly in bitcoin with confidence.
There is another option: Investors can also choose to gain exposure to futures contracts in bitcoin via ProShares Bitcoin ETF (BITO). With cryptocurrency regulation still in its infancy, BITO will allow investors to gain bitcoin exposure on a traditional market exchange, thereby reducing the risk of a public exchange going out of business.
Furthermore, BITO is actively managed, giving investors dynamic exposure to the bitcoin futures market. This puts portfolio management in the hands of market experts who can increase or decrease exposure to contracts, given the current nature of the ever-changing, volatile crypto market.
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