Taking a look at the previous forms of money, one can observe that it has been changing constantly. From the barter system when there was no money to today’s digital assets like cryptocurrency App, the face of money has evolved tremendously. Nobody had thought about digital currency till the early 2000s, and now one cannot imagine receiving or paying digitally. It is time for another leap in the ongoing times for money forms known as cryptocurrency, like Bitcoin, Ethereum, etc. It was during 2010 when BTC or Bitcoin came into the scenario.
Millions of people are investing in this type of digital asset. However, the concerning or dwindling point here is that will Bitcoin and other crypto assets stay in the picture for long? Can it replace the traditional fiat money? Such second thoughts are circulating in the market because BTC had flipped the financial position of many investors and has transformed them from rags to riches.
Many investors think that bitcoin can replace the fiat currency. But, it is not possible because bitcoin not yet received the legal status and it is not approved by government or banks. Apart from that, people living in remote places cannot use such coins for their daily transactions because they have to use their digital wallet connected with high-speed internet. Bitcoin can be influenced by tweets, social media news and rumors circulated by its investors, but fiat currencies are stable and not get affected by such news.
Let’s know what experts have to say about the future of Bitcoin!
- Volatile Nature- As of now, the biggest concern of Bitcoin is that it is highly unstable. When compared to global usage, only a small percentage of the total world population is actively using BTC or Bitcoin currency. Thus, its value keeps soaring high and falling on the ground even if a few investors change their mind. All of us have seen how Bitcoin suffered in the last few months after being the most prosperous asset last year. If this instability persists, people will give it a red flag and may not accept it as an alternative of fiat currency.
- Better Regulations- It is also correct that governments across the globe are still opposing the usage of cryptocurrencies. Though companies and people are using Bitcoin for their own investment, but it must be considered as an asset, not a currency. This is another reason why many people are still afraid and fear that governments will put a ban on it. However, El Salvador has become the first country to legalize its usage, and it is expected that other countries will follow the league. So, it is expected that better regulations will help in making Bitcoin and other cryptos stable.
- Decentralized Feature- Despite the latest lows and off-sides faced by Bitcoin, the most highlighting and positive point about this cryptocurrency is that its module is fully decentralized. People have been looking for a safer and more autonomous concept of handling money, and cryptocurrencies like Bitcoin have given everyone these perks. There are high chances that everyone is going to stick around this form of digital money because it ensures transparency and prevents fraud.
Another compelling point indicating a shining future for Bitcoin can be that we are moving toward a digitized and tech-savvy market; Bitcoin fits in such an environment perfectly over the typical fiat money. So, the chances of its rising bright are even more given the modern trend of everything becoming online.
As an investor, you must stay updated with the latest news and views of financial experts on cryptocurrencies like Bitcoin, etc. The key to getting the best piece of information lies in relying on an authentic source.
Conclusion:
Given the present circumstances, scanty regulations, and volatility rate of the crypto market including Bitcoin, one may not be able to give a one-sided verdict about crypto’s future. One has to observe the market carefully and regularly to take instant action resulting in the best benefits. Crypto undoubtedly has the potential to be the future if the entire market comes together because crypto promises to be the decentralized and safer option.