Bitcoin Is A Better Way of Transferring Value Around The World

Bitcoin is far too often looked upon as another investment vehicle, where quick profits and losses are to be made every day. And while some of that statement may hold merit - Bitcoin remains volatile, as does any other currency in existence - there is much more to the concept of Bitcoin than just the value.

Moving Money Across Borders As We Know It

One of the most prolific aspects of Bitcoin and the underlying blockchain technology is the use case of sending money to anyone else in the world. Rather than using traditional financial structures and options, Bitcoin allows a user to transfer value to the other end of the world in mere seconds.

Comparing this with bank transfers - which may take several days or weeks, depending the recipient’s locations - which are not only far more time-consuming, but also subject of hefty fees, Bitcoin is clearly a better option. Especially when you take into account how many people in this world have no or limited access to a bank account, credit card or any form of banking service.

You could make the argument that there are services who bypass the need for a bank account or credit card, such as Western Union. The way this type of money remittance works is by sending a person in a different country a certain amount of money - including a hefty fee - so they can pick it up within minutes at their local Western Union office.

On paper, Western Union sounds like a godsend, as the company has established offices in nearly every country in the world. And even though they charge a hefty fee for any transaction, the company provides a quick and convenient way to send money around the world. But there is one major problem that Western Union can not fight against, and that inflationary currency.

To give an example: sending money to Argentina through Western Union is probably the worst solution. Whenever the Argentine person goes to collect money from a local Western Union office, they are always paid out in the local currency. Regardless of the currency you use to send money in - EUR, GBP, USD, CNY - the recipient will always be paid in the Argentine peso.

It goes without saying that, in countries such as Argentina, people want to get rid of the pesos as fast as possible, and would much rather receive foreign currency. Unfortunately for them, this is not possible when using Western Union, nor through any other traditional financial platform. Tight government controls are working hard to keep their own currency relevant, even though its value is far more volatile than Bitcoin’s.

Bitcoin is Different in Many Ways

On the other hand, whenever you send Bitcoin to someone else in the world, they have the option of selling it for nearly any local currency used on this planet. In the case of Argentinians, they can choose to convert their Bitcoin balance to USD, EUR, GBp, CNY or any other currency that is not the local peso.

Most people assume that, in order to buy and sell Bitcoin, you need access to a bank account. In the Western world, that is partially true, even though there are other options available as well. Countries such as Argentina have seen Bitcoin brokers emerge, who will exchange the digital currency for fiat currency on the spot.

And even though a Bitcoin holder may lose a small percentage due to this conversion process, they will have access to far less volatile fiat currencies. Plus, all of this is still made possible without owning a bank account, as these trades can take place completely outside the reach of the government.

Granted, Bitcoin is often criticized for allowing the trading of illegal goods and services, and being a perfect tool for money laundering. Then again, so do fiat currencies, and they are much harder to track once they have left the bank vaults. Bitcoin transactions are recorded on a public ledger for everyone to see, making it far from an anonymous payment method, despite popular belief.

In fact, core Bitcoin believers will eve go as far as saying that people who use Bitcoin, literally have nothing to hide. Transactions can be traded from their address or origin to wherever the coins are sent in the end. Cash transactions are untraceable and are far more suited for money-laundering and illegal activities, as there is no way to trace bill numbers unless they are stored inside a bank.

Furthermore, Bitcoin has proven to be a far more convenient way to convert fiat currency to an “asset” that can easily be transported all across the world. Whereas traditional investors used to look at precious metals to store their value, Bitcoin is a preferred method of doing so these days. Due to its borderless nature, and ability to convert it to any local currency in the world, Bitcoin is a far more versatile “transfer of value” compared to gold or silver.

What are your thoughts on using Bitcoin as a method to transfer value across borders? Let us know in the comments below!

Images courtesy of Shutterstock

Australia Plays Centralized Role in Banning Mobile Games & Apps, Bitcoin Implications?

Australia is cracking down on any digital games and applications or dubious content. Rather than just outright banning Bitcoin games and apps - which remain available for now - government officials have imposed a ban on hundreds of web-based and mobile games. And it has to be said, there are some odd choices on that list.

Rating Digital Games To Determine Local Age Ratings

It goes without saying that video games have been facing a lot of scrutiny as of late, due to this type of entertainment being linked to violent acts, and in some cases, killing innocent people. However, numerous studies have shown over the years that playing video games is not the root cause for people spiraling out of control, as there is always an underlying issue.

With that frame of mind, governments all around the world are working hard to make sure video games carry a proper age rating. Technically speaking, a game rated “18” should never be sold to anyone under that age, even though most shopkeepers will not enforce that rule. And in this day and age of digital video game purchases and downloads, parents have no more control over what their children are playing.

But Australian government officials have taken things one step further, by officially banning certain apps and games from being downloaded nation-wide. This new “pilot program” will keep track of mobile titles listed as “refused classification”, and ensure they are not available for purchase or download anywhere in Australia.

According to the information we have received, a total of 260 mobile games and apps carry the “refused classification” tag. However, it is important to keep in mind this pilot program is only supported by Google’s Play Store and Firefox Marketplace so far, whereas Apple is using their internal content rating program and is therefore not affected by this pilot program.

This new rating system - in partnership with the International Age Rating Coalition - does not just look at the mobile game or app’s name in order to ban it. However, that creates some odd choices, as games such as Pinpoint, Pop Pet, and Japan Puzzle are on the banned list, despite receiving positive ratings in the US.

However, you have to keep in mind that these age ratings are dependant on quite a lot of different factors. Crude humor, scary elements, discrimination, violence, sexuality and crime are just a handful of the criteria to check. As soon as one of these criteria is applicable, the game will automatically be labeled as “Adult Content”, which results in a spot on Australia's banned list.

It is not the first time Australia makes mainstream media headlines in terms of video game control. Popular gaming titles such as Fallout 3 and Alien Vs. Predator have been banned in Australia in more recent years. In fact, this “battle” goes back all the way to 1995 when video games really started becoming more and more popular.

Things were starting to look up back in 2013, when Australia [finally] introduced the 18+ rating for video games to allow the sale of these games to adults only. But even that new standard was circumvented earlier this year when Hotline Miami 2 was banned in the entire country over an implied rape scene in the game.

Crackdown on Bitcoin Apps & Games to Follow Next?

Even though there will always be a battle of wills between government officials and video game developers, there have to be some restrictions to keep things under control. However, now that more and more people are buying their video games online from popular platforms such as Steam and Origin, there is no way to enforce this new guideline.

Such a strict ruling begs the question of whether or not governments are trying to play a centralized role in controlling the mobile space. Apple, one of the most popular mobile platforms, had effectively outlawed any Bitcoin-related game or app until the end of 2014, simply because they felt the need to protect their users.

But in the end, shouldn’t that decision be made by the end user, or their parents, rather than by a central authority such as an Apple or a government? And what would happen if a country decide to ban Bitcoin-related mobile games and apps, simply because their government officials feel the need to enforce a crackdown on digital currency?

Similar to how video game distribution works, there is no active way to restrict consumers from buying or using certain games and apps. Applications and games can be sideloaded on any major mobile OS - even though it takes a bit of tinkering - and preventing consumers from accessing certain things will only further stimulate their desire to bend the rules and obtain it anyway.

And as we have seen in the world of Bitcoin and digital currency, regulation can be a good thing, yet also drive away potential business if that regulation is enforced too strictly. The parallels between video games and Bitcoin just keep on adding themselves, and it will be interesting to see how this story plays out in the next 12 months.

What are your thoughts on Australia’s ban of hundreds of mobile games and apps? Let us know in the comments below!

Source: Ars Technica

Images courtesy of Shutterstock