How is the Defense Sector of Israel Affected by Bitcoin?
In the past, Israel was known as a technology powerhouse. Its success in tech has helped it become one of the largest exporters of military and security equipment in the world.
However, Bitcoin is an innovative payment system slowly making its way into the global economy. In this article, you will know how bitcoin is affecting Israel’s defence sector, and visit http://bitcoin-prime.app/ to open a free trading account.
7 Ways how Bitcoin Benefits the Defence Sector of Israel
The defence sector of Israel is a giant money-making machine. The country’s security experts have been estimated to be worth more than $7 billion US Dollars in 2013 alone.
1) Bitcoin strengthens the Israeli defence industry.’
As far back as 2009, the IDF used bitcoin for its operations. And not just that! It’s also known to be one of the preferred bitcoin supporters. The use of bitcoin in Israel’s defence sector is not only making them more robust, but it is also giving it international recognition
2) Bitcoin can help stop corruption in military contracts
Bitcoin technology has many advantages that are useful to the defence industry. It’s essentially decentralized digital money that any central organization or institution does not govern. This makes it very difficult to trace transactions made with this cryptocurrency.
3) Bitcoin can help protect the intellectual property of Israel’s defence industry
Intellectual property theft is on an all-time high these days. Stolen ideas, designs, and patents can be sold to the highest bidder who later uses them against Israel. It will be nearly tough for anyone to succeed with bitcoin without getting caught.
4) Bitcoin brings financial inclusion to ‘unbanked’ people of Israel’s defence industry
The defence sector employs many people, the vast majority of whom are considered ‘unbanked.’ This means they don’t do business with banks because they can’t afford it.
Bitcoin reduces the need for third-party intermediaries, allowing for speedier and safer payments. In addition, the fact that bitcoin transactions are cheaper than bank transfers makes this cryptocurrency an ideal form of money transfer in the defence industry.
5) Bitcoin can save lives
Military personnel requires the best tools and equipment to carry out their missions effectively. By using bitcoin, they will buy everything from gas masks and bulletproof vests to gun scopes and body armor straight from the manufacturers saving them time and money.
6) Bitcoin can be used to pay salaries in the defence industry
Since the defence industry employs more than 50% of Israel’s population, it makes sense that they too get paid in bitcoin. This will save their employers money on payroll processing and ensure prompt payments and almost zero chargebacks or fraud.
7) Bitcoin brings transparency to the defence industry
Openness in a defence contract is critical. For example, it has been observed that defence contractors who accept payment in bitcoin provide their customers with all of the relevant information about their transactions. This includes how much was paid when received and what for etc.
3 Negatives of Bitcoin that Affects the Defence Sector of Israel
1) Bitcoin is volatile
Bitcoin prices have been known to fluctuate as much as 25% in just a matter of hours. This volatility is mostly because bitcoin is still an emerging technology, and its price is not regulated like fiat currencies, which means its worth can change at any time.
While this may pose a challenge to those who use them for business purposes, it can be a massive problem for those whose lives depend on this technology.
2) Bitcoin transactions are irreversible
There’s no way to cancel or reverse bitcoin payments once initiated. The best you can do is ask the other party to return your payment if something goes wrong, but it is often not possible.
3) Bitcoin transactions are pseudo-anonymous
While some believe that bitcoin makes them more anonymous than regular credit card users, this is far from the truth. Each transaction on the blockchain has a unique address which means no privacy is guaranteed.
While many things still need to be worked out before the use of bitcoin becomes mainstream in Israel, it is clear that this emerging technology can have a significant impact on the defence sector.