We’re in the digital age where digital technologies like cryptocurrency shape every aspect of life, from business to governance. Less than three decades ago, it would have been unimaginable for someone to use digital payment. Cryptocurrency is currently the primary digital payment solution, with Bitcoin taking the lion’s share. Bitcoin is a desirable investment asset, with millions of investors trading Bitcoin on platforms like biticodes
You do not have to be a crypto enthusiast to have heard about Bitcoin. Bitcoin has become common in every news outlet, especially in new media. If now is your first-time hearing about it, you should be more active in following current trends and news. However, Bitcoin is more than just a trend.
What Is Bitcoin?
Bitcoin is a digital currency as well as a store of value. These two features are some of the reasons pushing the debate on whether Bitcoin is just a bubble or the future of money. Before we dig deeper into this debate, you should note that Bitcoin’s value is highly volatile. Although it launched when its value was a fraction of a dollar, the value has grown to thousands of dollars.
Part of the fuss about Bitcoin comes from its trading aspect.
Bitcoin as Bubble Waiting to Burst
Crypto critics form most of those who think Bitcoin is just another bubble waiting to burst like the dot.com bubble. They draw their negative sentiments about Bitcoin from several points. First, they contend that Bitcoin lacks intrinsic value. Market enthusiasm and anticipations determine Bitcoin’s value.
Second, Bitcoin critics see no future for Bitcoin because it needs more government backing. Fiat currency enjoys government backing, and this creates confidence among users. Since Bitcoin is a decentralized currency without government backing, people may need more faith. Bitcoin’s creators and miners remain faceless and unknown.
Finally, Bitcoin’s price is highly volatile. The price keeps changing by the minute. And this creates uncertainty around Bitcoin’s future price. Going by history, the price could fall by a vast margin leading to the bubble bursting.
Bitcoin as the Future of Money
Bitcoin is not a bubble waiting to burst. Instead, it is the future of money. Bitcoin already has millions of users, and the numbers are increasing daily. Institutional users are increasingly embracing Bitcoin. It shows that users have confidence in Bitcoin despite lacking government backing. Even without government backing, the secure blockchain network act as a guarantee for Bitcoin.
Bitcoin is also providing a better alternative to centrally controlled fiat money. By eliminating the central bank and other intermediaries in financial transactions, Bitcoin is making financial matters more transparent, democratic, and efficient. For example, Bitcoin promises to spread financial services to many people who need access to them because of various factors such as illiteracy.
Bitcoin also provides a safer financial system than the current one characterized by fiat money. Without government and institutional control, political and commercial interference risk is nonexistent. It means that Bitcoin may make politically or institutionally instigated financial crises will be a thing of the past.
Finally, Bitcoin is a universal currency without any link to a particular nation or jurisdiction. You can use Bitcoin anywhere in the world. You can transfer and receive Bitcoin from anywhere globally at a much lower cost and faster. There are no currency exchange rates to pay or other third-party fees.
Conclusion
Bitcoin is not a bubble waiting to burst despite not having government backing and inherent value. The blockchain technology that underpins it is enough to ease such uncertainties. More importantly, Bitcoin is a significant part of the digital revolution sweeping across all aspects of society.