Does Bitcoin have a Future?
Does bitcoin really have a future? Everyone is looking for the answer to this question. The rapid spread of cryptocurrency around the world and its increasing popularity allows experts to make confident predictions about the future of digital money. The future of bitcoin does look more optimistic rather than pessimistic, since the law of supply and demand is in full effect, and more and more people are beginning to see the benefits of cryptocurrencies over traditional money.
Is Bitcoin the industry standard?
Many people that have made investments into bitcoin and other altcoins constantly question whether is a choice that will pay off, and whether or not cryptocurrencies will become the new standard at all.
High volatility and fluctuations in price, legalization and banning in different countries – these are the kinds of news that make everyone wonder what will happen next. Experts from across the globe have different viewpoints. Some claim a complete drop in price, others – bitcoin gaining the status of an international currency.
Most experts believe that Bitcoin will be able to hold on to its current position and even strengthen it further. Cybersecurity pioneer and the founder of the McAfee antivirus software development company – John McAfee says that no one will be able to stop Bitcoin.
Imagine, that only a hundred years ago, countries used gold as a standard for mutual settlements. Only by the middle of the 20th century did we begin to peg currencies to the US dollar. Gold has replaced commodity barter, and paper money has replaced gold. With such rapidly changing methods of settling trade between states, Bitcoin could well replace paper money and become something along the lines of a cryptocurrency standard. To recognize the cryptocurrency at the international level, the consent of all countries is not needed. The participation of several world leaders, as well as their dependent countries and allies, will suffice. After that, just as with the dollar, everyone will start using bitcoin, perhaps even other cryptocurrencies, at a fixed rate.
Why is Bitcoin considered the “cryptocurrency standard”?
The pioneer of the cryptocurrency world has characteristics that are similar to that of gold:
- • The mining process, which becomes increasingly complicated with time;
- • Limited quantity;
- • Significant energy costs to obtain.
American hedge fund manager and investor James Altucher predicts that the cryptocurrency may very well deprive the state of the monopoly on issuing money. Just as the Internet once deprived the telephone industry of this right.
According to some of Altucher’s predictions, sooner or later the currencies of certain states will fail, and the countries will have to transition towards Bitcoin.
The regulation issue
According to the generally accepted definition, cryptocurrency is a kind of digital currency, the process of creation and control of which is based on cryptographic methods. All accounting processes are, as a rule, decentralized. That is, they do not have a single center for control. This characteristic of crypto makes it very convenient to use, especially in illegal activities such as money laundering, smuggling, and trafficking in drugs and weapons. This is exactly how bitcoin got its first widespread use by the way, via the black market forum known as Silk Road.
Crypto regulation is already being carried out in many states, and the rules differ depending on where you are. In some countries, it is recognized as a means of payment. In others, the use of such currencies is strictly prohibited.
The United States of America was one of the first to recognize Bitcoin. In Japan, Bitcoin was recognized as legal tender. Canada, Germany, Ukraine, Belarus, Australia, Norway, Sweden, Bulgaria – these are countries where the use of cryptocurrency is regulated at the legislative level. In countries like Romania, Iceland, Kyrgyzstan, and China, transactions using cryptocurrency are considered illegal.
Participants of the G20 summit), following the results of multiple discussions, concluded that a complete ban on the use of electronic money will not solve anything. Cryptocurrency already plays a significant role in the world’s economy and social organization. It cannot be prohibited, therefore, it must be regulated.
Impact on other banking and payment services
Each time a bank card is used to pay for a service or a product, the system takes a commission. Systems such as MasterCard and Visa significantly overestimate the amount of payment required for conducting a financial transaction with a card. In fact, these companies could make transactions cheaper and much faster should they want to, but until they face any real threat to their established payment systems, they will not have any incentive to improve, especially when the existing business model is making them billions.
It is in these kinds of moments that you begin to appreciate Bitcoin, which allows you to conduct transactions instantly. Bitcoin is seen as a legitimate threat, which is why it is making the banking industry think and take steps towards decreasing costs for transfers.
The risks you may encounter in this market are the same as in any other. Many believe the switch to digital money is inevitable, but whether the time has arrived for that is another question. It is necessary to take into account one important point – if you launch a cryptocurrency into circulation, its circulation should be the result of its utilization by ordinary humans. Only then will it find mass implementation and major success.