The traditional economic system was filled with uncertainties. From inflation to recession—the market never gave us a certain ray of hope that stood to work to our advantage. This is why Bitcoin came as a messiah.
It showed us ‘Hope’ when the world was plunged into economical debt. More and more people sought refuge in digital currency because it was full-proof from all attacks and price shifts.
With this notion came the notion of a Trust Economy.
People who have been trading Bitcoin on the Quantumai trading app must be familiar with Bitcoin’s stability and price fluctuations from time to time. Even if the price declines, it quickly bounces back, giving a ray of hope to traders.
This is fundamental to a trust economy.
So, let’s find out more about its relation to Bitcoin.
What Is A Trust Economy?
A Trust economy is a financial system in which people generate social, economic, personal, and relationship value as they invest in a commodity.
Companies will have to come to terms with the fact that how they lure customers now and how they used to lure customers a few years back are totally different.
Nowadays, customers look for more than quality and quantity before buying something. They check carbon footprint, sustainability score, and other pain points as they buy an item, which means attracting customers is not easy in the 21st century.
In simple terms, customers have to trust companies before buying an item. So, the basic notion of a trust economy relies on the fact that people should have faith in the government to bring out its utmost good-natured interests.
If people don’t trust the economy, they will soon lose jobs, employment, profit, and trading practices. The world will turn into a big ball of chaos, and there will be absolutely no order in any business practice.
So, what do you think?
- Is the trust economy worth the hype?
- Or is it just another myth that will fade away over time?
We think time will answer this question better, but the fundamentals of the trust economy are absolutely worth the hype.
Relation Between Bitcoin & Trust Economy
Bitcoin transactions take place on Blockchain, which is a public electronic ledger regulated by no one.
It acts as a relational database where people create an unchangeable record of their transactions. Each of this document is time-stamped and liked to the previous one.
Each block is linked to a specific participant, and in this P2P network, there is absolute verification on each and every transaction, making the technology so secure that it is safe from all forms of online hacks and attacks.
Disparate third parties are responsible for managing these transactions, and Blockchain users are the anonymous administrators looking after their transaction volumes every day.
Hence, it establishes the pillar of a trust economy because there is no ownership of assets, no data sharing issues, no entitlements to perks or benefits, and most importantly, no evidence supporting the existence of this entity.
This is why Bitcoin’s relationship with the trust economy is an intricate yet essential one that doesn’t seem to shake the pillars of faith in its traders.
For example, take the traditional company stocks. Many people buy and sell stocks on trading platforms, which is their major source of income. If the government suddenly introduces a new policy or inflation arises in the economy, the stock prices get affected.
It creates recession, and economic depression, giving rise to a whole new wave of financial difficulty.
Thus, it’s evident that the traditional economic system isn’t trustworthy.
On the other hand, Bitcoin trading platforms are immune from these price shifts. There is no government to regulate them, which protects them from these sudden price drops. So, if someone considers Bitcoin trading to be his primary source of income, he will always be certain to have money at the end of a month.
As you can see, Bitcoin invented the pillar of the trust economy, and nothing can shake this pillar even if there are multiple fluctuations impacting the economic cycle.
You may wonder how your Crypto coins will perform in the future now that their prices have dropped so dynamically, but one thing is certain: its price will surely redeem itself in a short span of time.
So, if you need to place your bets on Bitcoin, you may do so with utter confidence.