The world of finance has not yet welcomed bitcoin like it has celebrated the other coins. The sole fact behind this indifference is the fact that bitcoin is neither issued not controlled by any bank or government. The recent Green debacle brought to light numerous disadvantages of the traditional monetary system. So, what is the future of the traditional financial system?
Could Bitcoin be the new world currency?
Source: coindesk.com
Everyone must be familiar with the term “Financial Crisis”. The world has been experiencing a financial crisis since the past eight years, and while the last banking crash occurred in 2008, its effects are very much prevalent in today’s world as well. The job market has faced the most significant blow in recent years. The growth in the job sector is pretty much stagnant.
The banks are generally blamed for the financial crisis that the world is facing right now.
However, they are hard to be blamed. It all started some 45 years back when the U.S. dollar was decoupled from the gold’s value. Back then, the U.S. dollar, which has become the global currency right now had no value and was backed by empty promises.
The best way to overcome this problem will be to evaluate ways in which the free competition of the non-state coins can take place. Bitcoin is the primary candidate for this proposition. It is a borderless currency that can be used throughout the world and can be easily exchanged for local currencies.
So, does Bitcoin hold the answers to the financial crisis that the world is facing? Here mentioned are the reasons which suggest Bitcoin could be the new world currency. You can find more information about bitcoins at bitcoinprofit.
5 Reasons Bitcoin Could Be the New World Currency
Source: financialcommission.org
- It is fraud-proof:
All the transactions are recorded in the ledger, and hence it is fraud-proof. Also, bitcoin is encrypted, and no information is leaked to the public. As this coin is decentralized, you own the complete ownership of the currency present in your wallet. Additionally, it ensures that the government, as well as the bank, has no control over it.
- Identify Threat:
The public ledgers that hold all the transaction details ensure to provide an accurate calculation of the balance. All the transactions made by bitcoins are being checked by the authorities’ time and again to check whether or not the purchases are made by the rightful owner.
The public ledger is also known by the name of “transaction blockchain”, and it maintains all the records. Blockchain technology ensures that all the transactions are encrypted and are secure. Also, Blockchain has signed small contracts with numerous security service providers, and they provide that the transactions are highly reliable. With such a highly secured, fraud-proof transaction system, Blockchain is believed to touch all sectors of life in the upcoming years.
- Instant settlement:
Cryptocurrency owes a large part of its existence to Blockchain. Blockchain is extremely easy to use that contributes to its popularity. All you need to do transactions with the help of
Blockchain is a good internet connection and a device that supports the internet and voila! You become your bank. You can make payments and transfer money quickly with the help of this decentralized currency.
There are over a billion people around the world who use the internet regularly. However, they do not have the right mode of payment system to do online transactions. Also, the currency difference among countries plays a significant role as to why people step away from making payments online. With Blockchain, this fear submerges for this currency is valid worldwide.
- Borderless Transactions:
Say, you are purchasing a particular product from America while sitting in India. You need to at first convert the U.S. dollars into Indian Rupees and then make the transaction accordingly.
Also, a lot of money will be paid as extra transactional fees. We do have numerous software and applications like Paypal and Payoneer, which have online transactions using the respective country’s currency. However, you need to pay specific transaction fees to avail of their services.
With Blockchain, you need not sit down and calculate the value of the other currencies present in the market. The amount of Blockchain is the same throughout the world. Thus, it mainly helps to mitigate the geographical differences. Also, bitcoin eliminates third party charges.
This is one feature that allows the business owners to accept this coin without any complaints. With globalization, and with blockchain currencies, the business owners can perceive their businesses are booming.
- Inflation Resistant:
Our financial system is flawed in terms of regular inflation in the price of the commodities. While designing bitcoins, the authority had laid down specific rules and regulations. One of them is the fact that there is a cap on the number of bitcoins that can be produced and the cap value is fixed at 21 million. This limit was a wise decision on the part of Satoshi Nakamoto, who is the brain behind bitcoin.
The limit set on bitcoin has made in inflation resistant, thereby giving it an edge over the traditional currencies. The anti-inflammatory measures also translate to the fact that Blockchain will continue to retain its value in the years to come. Also, in countries where hyperinflation is prevalent, such as Turkey, Iran and Venezuela, the inflation-resistant feature of Blockchain will surely come handy.
Final Words
Source: ftalphaville.ft.com
The future of Blockchain is solely based on probabilities. To date, Blockchain has no superior competitor in the world of cryptocurrencies. 2024 seems to be a big year for cryptocurrencies. India has always been in a love and hate relationship with the cryptocurrency. The customary law and policy and seized the use of Indian financial institutions to purchase cryptocurrency. Still, aside from all this, there are plenty of start-ups that are working in cryptocurrency and another type of crypto assets. Hopefully, the world will soon see a new financial system where the financial crisis will only remain a namesake word.
