Bitcoin has been around for close to ten years, but this is the first time it’s been recognized as a viable currency. It could also potentially be the world’s reserve currency because as countries begin to adopt it, its advantage will only continue to grow. In 2008, Bitcoin was released with no pre-existing infrastructure and no union backing it. Bitcoin’s lack of a central authority puts it in a very powerful position in the current market because governments and banks tend not to favour something they can’t control. People never expected Bitcoin to take off, but it did. By 2013, Bitcoin had skyrocketed from being a blip on the internet map to becoming the world’s fourth-most popular cryptocurrency by market share. If it continues its steady growth, there is no telling how far it will go. The fact that a currency goes from being mocked to being considered a viable investment in less than ten years shows how quickly this new currency can make waves.
The Struggling Global Economy:
Bitcoin has been prophesied to be a currency for the future, and it is already showing that it can compete with established currencies. Europe and the United States are two of the weakest economic zones in the world, which leads to people turning to currencies that stand out from others. When there is a crisis in a particular country, governments are forced to act in order to gain control back from citizens. One way they do this is by creating money out of thin air. When emergencies happen, these currencies typically rise and fall with them. Whenever there is a spate of bad economic news, the world typically sees a weakness in the value of their currencies. In order to maintain control of their currency, governments will do everything within their power to keep it afloat. During the 2008 financial crisis, countries around the world tried everything from expanding their money supply to instituting new taxes in order to maintain control of what they had left. Inflation rates typically rise when money supplies are increased excessively because there is more overall supply than demand.
Bitcoin’s scope as the World’s Reserve Asset:
Currencies that are backed by commodities tend not to do as well because they are vulnerable to the price of the commodity they are backed by. If a country’s currency is backed by its precious metals, there is a chance that its value will fall if other countries try to move in on their territory. This vulnerability isn’t present in a digital currency like Bitcoin because Bitcoin will always have value as long as people recognize it as having value. A currency’s value is determined by what people are willing to trade it for. In other words, the value of Bitcoin will always be determined by the market. When countries start to adopt it, however, Bitcoin will become the world’s reserve asset.
The Argument Against:
Governments typically go through a process that first involves looking for alternatives before choosing an option. Governments have been doing this for hundreds of years and usually choose fiat currencies over other options after long and thorough deliberation. Their aim is to centralize their money supply and become more efficient at managing their economies. However, Bitcoin is different from fiat currencies because it isn’t tied to the economy of any specific country. Its value will continue rising until it can be used as a currency for trade. Once that happens, there is no telling how high its value could go, but governments have never been known for looking past their nose when it comes to money.
The New World Order:
Bitcoin has already proven to be more viable than fiat currencies, but it’s a matter of time until governments move in on it. Once they do, Bitcoin will need to prove that its worth is based solely on the market and not on how governments decide to value it. This is the challenge that all cryptocurrencies face in the near future. If cryptocurrencies are going to have any chance of getting as far as Bitcoin has gotten, they are going to need to prove that they can survive without government support or intervention. This means that they will have to be able to withstand an attack by a country’s central bank or government. Looking to boost your earnings? Bitcoin profit is the perfect place for you! With our easy-to-use platform, you can earn more through bitcoin trading.
Bottom line:
Bitcoin might not be ready to take over the world, but it has certainly shown that it has the potential to do so. As time goes on, adoption rates will rise, and Bitcoin will have a greater chance of becoming the world’s reserve currency. If this does happen, the value of Bitcoin will soar to new heights and become more useful for people all over the world. The ability for a currency to be used as a global currency is clearly something that governments have been looking for. Bitcoin has offered this capability to the masses, and it has risen in popularity with every passing day.
