Bitcoin seems to be more than just a fad, attracting the attention of businesses worldwide. Industries in Germany are affected by bitcoin and blockchain technologies. Blockchain technologies can provide transformational changes for German enterprises. You can click on the Bitcoin System to learn more about bitcoin trading.

Digital currency, digital cash, or virtual currency is only one application of the technology, which is blockchain. The use of blockchain to transfer the ownership of digital assets is just one. The way that financial markets function can change with blockchain technology too.

This could be particularly important for stock exchanges, central securities depositories, and trade reporting systems. All work reasonably well but are inefficient by modern standards. Blockchain can make them faster, cheaper to run, and more reliable.

7 Positives of bitcoin on industries of Germany

  1. The Electrical Industry of Germany is one of the leading suppliers of electrical equipment in Europe. Therefore, the electric sector of Germany is more likely to make a more significant contribution to the bitcoin promotion and development process, which will affect many other industries related to electricity consumption like industry, transportation, etc.
  2. The Financial Sector Of Germany Includes A Big Banking And Financial Services Industry.

As per the report, Germany tops the list of countries that accept bitcoin as a currency. Unfortunately, there are no branches of large banks in Germany that accept bitcoins directly but are still at number 1.

  1. The Logistics Sector Of Germany Is An Important Service Sector And Employer In The German Economy, Includes Many Sub Industries Like Transportation, Communication, and Banking.
  2. The retail sector of Germany is purely dependent on supply chain management to move products from suppliers to consumers or end-users. It requires almost 8 to 10 different parties in the supply chain.

Therefore, Supply Chain Management Is More Likely To Be Affected By Blockchain Technology Which Can Reduce Costs, Improve Transparency And Efficiency Of Transaction.

  1. The real Estate Sector of Germany is the next significant sector affected by bitcoin and blockchain technology since the real estate sector is more likely to be more effective, efficient, and cost-effective.
  2. The Mining Industry of Germany includes industrial processes for extracting minerals and metals from the earth. The mining industry is mainly divided into two sectors they are coal and non-ferrous metal, which can be positively influenced by blockchain technology shortly.
  3. Germany’s food and Beverage Sector includes the production, distribution, and preparation of food and drink, which can be improved with blockchain technology.

This article is about how bitcoin affects the industries of Germany, so far as you know. Still, it looks like they do not have much effect on different sectors in Germany or elsewhere around the world because they are still new in other countries except Germany.

5 Negatives of bitcoin on the industries of Germany

  1. In Bitcoin, transactions are anonymous, which is a severe issue for those involved in business to consumer (B2C) and business to business (B2B). It gives rise to illegal activities like dirty money, drug trafficking, etc., terrorism financing. Moreover, it can be a threat to the legal economy by depriving it of resources with which to finance its activities.
  2. In the next negative point, as bitcoin is a form of currency not issued or guaranteed by any central bank or any other regulatory authority, its value can fluctuate and even fall to zero if all users lose confidence in the system stop using the currency. Moreover, its price is not pegged to any asset.
  3. Everyone should be aware that a lack of a central authority means no one to complain to if you lose your bitcoin wallet password or your Bitcoin is stolen.
  4. The last negative point for this article is if you are discovered or caught trying to sell illegal items or substances using bitcoins, the law enforcement agencies can trace your transactions back to your IP address. In most cases, they can also catch you.
  5. One more point is that bitcoin’s mining process is energy-intensive and can negatively affect its carbon footprint. Mining activities also mean that colossal computing power is needed to solve complex algorithms, which consume much electrical power.

Conclusion:

In the end, it can be said that blockchain is a disruptive technology that has many positive effects on different sectors in Germany and around the world. Blockchain has a huge potential to change or even revolutionize several sectors; however, bitcoin still needs a reasonable time to be accepted by most countries worldwide as a legal tender.