Bitcoin has been slowly infiltrating the travel sector of Panama. A few businesses here and there have started to accept it as a payment method, but it is still not widely used. There are a few reasons for this. The first reason is that, until recently, bitcoin has been incredibly volatile. This makes it a risky investment for businesses, as they never know how much their bitcoins will be worth from one day to the next. If you’re interested in knowing the MicroStrategy plans to buy more bitcoin visit this link for more information.
Another reason is that Panama has not had any major cryptocurrency exchanges until recently. This implies that citizens in Panama have had no convenient method to obtain or trade bitcoins. The only way to do so was through a complex and complicated over-the-counter (OTC) transaction.
8 Ways how bitcoin affected the travel sector of Panama
1. The use of bitcoin in Panama has led to increased foreign investment in the country's travel sector. Investors can conduct their transactions more efficiently and securely using bitcoin.
2. Bitcoin has also made it easier for Panamanians to travel abroad.
3. Bitcoin has also helped to boost the tourism industry in Panama.
4. The usage of bitcoin has also resulted in a rise in Panama's number of visitors. This is because they now have a convenient and secure way of spending their money while traveling.
5. The use of bitcoin has also helped create new jobs in the travel sector of Panama. This is because more businesses are now accepting this digital currency as payment for their services.
6. Bitcoin has also led to an increased number of people traveling to Panama for business purposes.
7. Bitcoin has also helped improve Panama's image as a tourist destination. This is due to its reputation as a cutting-edge country that embraces new technology.
8. Finally, bitcoin has helped reduce the cost of traveling to Panama. This is because business owners and tourists no longer have to pay transaction fees when using this digital currency.
8 Negatives of bitcoin that affected the travel sector of Panama
1. Bitcoin can be used anonymously, which concerns money laundering and terrorist financing authorities.
2. Bitcoin's price volatility creates uncertainty when exchanging it for traditional currency.
For example, in June 2017, one bitcoin was worth $2,500, but by December 2017, its value had skyrocketed to $19,000. This makes it difficult for businesses to budget and plan for their expenses.
3. Hackers can steal Bitcoin if businesses are not careful about storing their digital currency. For example, in August 2016, Bitfinex, a bitcoin exchange, was hacked, and $65 million worth of bitcoins were stolen.
4. Any government does not regulate Bitcoin, so there is no consumer protection if something goes wrong.
5. It might be challenging to operate and comprehend for people unfamiliar with Bitcoin. For example, to buy bitcoin, you need a digital wallet, and to use it, you need to know the unique code for each transaction.
6. Many merchants do not accept Bitcoin, so it is not yet a convenient form of payment.
7. The energy consumption required to mine bitcoins is high, which could have negative environmental consequences. For example, in January 2018, it was reported that the amount of energy used to mine bitcoins in one year was equivalent to the annual energy consumption of Iceland.
8. Bitcoin is not yet legal tender in many countries, so businesses that accept it could be at risk of being fined or shut down. The Monetary Authorities of Ecuador, for example, outlawed bitcoin and similar virtual money in September 2017.