Broken by the volatility of Bitcoin, it is possible to gain a foothold in one of the niches of the real economy.
Bitcoin, which gets from users for volatility and volatility, will probably take up the niche of cross-border remittances, reports The Edge Markets referring to Reuters.
Bitcoin, used as a transfer mechanism, rather than currency, allows to avoid transaction fees of banks. Such start-ups as Bitspark in Hong Kong and Bloom, Payphil, coins.ph and the Satoshi Citadel Industries (SCI) remitters division in the Philippines are trying to implement projects using crypto currency as a way of transferring money abroad and from abroad.
In this model, businesses do not buy Bitcoin in advance, and immediately sell it for currency in the host country, without waiting until it changes in price. Transactions of clients are resolved in a few minutes, not days and the volatility of the crypto currency does not have time to have a significant impact on the amount at the exit.
At the same time, it is noted that, as a rule, transfers from countries with more developed economies to Indonesia or the Philippines through Bitcoin lead to the fact that the receiving side receives the same amount as the sending party listed. But transactions in more developed regions, for example, in the Philippine communities of Hong Kong and Singapore, do not have advantages over bank transactions because of the difference in the prices of the crypto currency.
Author: Evgenij Novožilov, Analyst Freedman Club Crypto News
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