Bitcoin was created first in the year 2007 and it is the first decentralized currency in the world. It is now accepted as a form of payment in most countries. The technology is very innovative and this could cause Bitcoin to become the new global currency.
Investors keep wondering if it is the new bubble. Or is it just a cutting edge of the technology of today? Technology is here to stay but what happens with Bitcoin is something that only time will tell.
It rose exponentially and a single unit of the currency is more than three times what an ounce of gold would cost you. Experts predict that the currency has more highs to see.
There are various uses of Bitcoin
- It is today a unit of account – Bitcoin indeed serves this purpose. It is also divided further into Satoshi; similarly, the dollar is divided into cents. This is what is known as the power of divisibility and it will allow Bitcoin to become unit of account
- Bitcoin stores value – When you talk about storing values then bitcoin is a step higher than any traditional currency. The traditional currencies have to deal with the inflationary pressure and thus they depreciate in value. This does not serve the store value purpose. However, it has a limited supply and thus it will store its value. Bitcoin value has to rise further because its supply is limited and demand high.
- Bitcoin is a medium of exchange – It can be used to do transactions to buy goods and services. It also has a very low transaction fee as compared to the fiat currencies when it is transacted through a bank. It definitely shows that bitcoin is here to stay.
The scene could twist based on what laws the government passes. If the government allows payments to be done anonymously then this currency has a future. Also, competitors Bitcoin has to be researched on and whether they would give this cryptocurrency a tough competition.
The technology that is used in digital currency has a wider application for cybersecurity and this is indeed a challenge to the global financial system.
It is just a wait and watches the game to see if Bitcoin will be allowed to take the stage and replace the currency that is backed by the central bank. The government allows small transactions through digital currency will it be allowed for any large-scale transactions?