How has bitcoin affected the economy of Germany?

According to a study by RWI- Leibniz Institute for Economic Research, the bitcoin prices in Germany have been maintained at $51.12 per day on average of the world’s published prices for bitcoins. Moreover, it has grown popular among people who access the world wide web anonymously. As a result, bitcoin exchanges have been popular in Germany. 

The price of bitcoins in Germany has been sustained at $ 51.12 per day on average over the world’s published prices for bitcoins. Bitcoin is a digital currency that any government or central bank does not control, and its value depends on the number of people who use it and the volume of transactions. 

Eight ways by which bitcoin has affected the economy of Germany

Since no one controls bitcoin, it has attracted public attention and sparked fears and concerns about its potential dark side. 

1. The price of bitcoins in Germany is higher than in other European countries: RWI- Leibniz Institute for Economic Research found that the average price of 1 bitcoin was $ 51.12 in Germany. For comparison, $ 49.45 in Italy and $ 47.20 in France. 

2. Bitcoin has not yet been widely adopted: The price of bitcoins in Germany is higher than in other European countries because of the volume of transactions and the number of users there more than in other countries. 

3. bitcoin enables buying illicit goods: Some websites sell drugs and weapons anonymously through bitcoin. The study by RWI- Leibniz Institute for Economic Research found that the number of users, who buy these products, has increased in Germany about ten times from 2013 to 2014. 

4. More surprisingly, people began using bitcoins to pay their taxes: In Germany, taxpayers can now pay their taxes and other bills with bitcoins through a website called bitcoin.de. More surprisingly, some people started using bitcoins to pay their taxes. Click crypto wallet  for more information. 

5. The use of bitcoins has increased in Germany: RWI- Leibniz Institute for Economic Research found that the number of bitcoin users has risen from about 8,000 at the beginning of 2013 to about 30,000 at the end of 2014. some people use bitcoins for various reasons, such as avoiding taxes and transfer fees, anonymity, and low volatility. 

6. bitcoin can be used to avoid currency exchange costs: In Germany, most merchants who accept credit cards charge a fee of about 3 percent on transactions. 

In addition, they charge a currency exchange fee when the german merchants receive money from countries outside the eurozone or euros. 

Bitcoin can be used to avoid currency exchange costs and transfer fees; for example, making purchases from online retailers based in bitcoin may be a good option in countries such as Germany, where the local currency’s value is decreasing. It can also help avoid currency exchange costs when traveling abroad. 

7. Bitcoin may give access to financial services in the future: Since bitcoin is freely distributed, it can be an alternative way to finance public projects. Some cities are now using bitcoin for various purposes. 

8. Bitcoin transactions are anonymous but do not offer complete privacy: Some criminals have used bitcoins to avoid surveillance by law enforcement authorities, but they are still considered less anonymous than cash. 

Bitcoin has been widely used overseas for some time, but its recent increase in Germany is more noticeable. As a result, Bitcoin may become an alternative to the existing banking system, which would significantly impact the global financial structure. 

Conclusion

There are now about 30,000 people who use this currency in Germany. Bitcoin is widely used in various aspects of life, such as avoiding taxes and transfer fees, anonymity, and low volatility. It also may be an alternative way to finance public projects. 

Bitcoin transactions are anonymous but do not offer complete privacy. In the future, bitcoin may become an alternative method of paying online and retail. Bitcoin offers real benefits for users, society, and countries from Germany. 

As a result, its use will increase in Germany. The statement does not claim that people use bitcoins frequently because it is still not widely accepted in Germany. Still, since its users are increasing, it shows that the use of bitcoins will increase due to the convenience it offers. Bitcoin’s role in Germany is becoming more pronounced, and many companies are showing interest in using bitcoin. 

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Bibek Dai

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