In recent months, Bitcoin has been the hot item everyone is talking about. With the cryptocurrency flying off of digital shelves almost as fast as it can be mined, it has hit an all-time high and shows no sign of slowing down. A big reason for this is big institutions such as Tesla and the Bank of New York Mellon are supporting Bitcoin as a crypto asset. Many fintech apps that specialize in the transfer of money – including Venmo, Cash App and Paypal – are now encouraging their users to purchase and transfer Bitcoin.
Encouraging users to go crypto
Venmo, Cash App and Paypal have encouraged more people to buy into Bitcoin because they have touted themselves on user experience, giving customers a more convenient and easy way to transfer money. Therefore, convincing current users to try Bitcoin on their platforms is an easy sell; these apps can bypass the high learning curve of cryptocurrencies. Also, the ability to buy Bitcoin may convince new users to try these apps.
However, these ease-of-use features come at a price: The security of these transfers is much more suspect. Many of the security features built-in to Bitcoin (and other cryptocurrencies) are designed to protect users from theft and fraud. Nobody would argue that a user is putting their money in danger by using fintech apps. It is abundantly clear that users are more likely to experience theft or fraud by bypassing security measures.
All that being said, it is still possible to lose your Bitcoin in a traditional cryptocurrency app and/or cold storage, and fintech apps will always be making moves to up their security. Time will tell if apps like Venmo will protect their users from Bitcoin fraud.
Meanwhile, on the other side of the ocean…
With many companies buying into Bitcoin, it’s hard not to see it becoming an actual currency or real asset soon. However, some are still very skeptical of crypto, calling it a scam. India became one of the world’s strictest policymakers against cryptocurrencies: The country announced that it wants to ban Bitcoin, penalizing anyone that possesses, issues, mines, trades and transfers crypto-assets. Only time will tell how this will affect cryptocurrencies.
What do you think? Will other countries follow and start banning cryptocurrency, or will they jump on the Bitcoin bandwagon?