Hello friends, in today’s article, we see whether is bitcoin the future of money? what happens in the future if cryptocurrency is ruled by the government, let’s understand all questions answered in this blog.
Is Bitcoin the future of money:-
Before starting this discussion, I read a previous article on bitcoin, in which we discuss very well about currency and investment in bitcoin.
let’s see from our perspective
Our Perspective:-Is bitcoin the future of Money?
By seeing our perspective, some question arises, like
Is anyone use bitcoin for currency purposes?
the answer is No
Because, most people only use the currency for small transactions, on a daily basis.
so because of this reason, people don’t wait for 16 or say 18 hours for a small transaction to complete.
so bitcoin and Blockchain will be choked with transactions all the time.
if the common man makes a mistake while doing his transaction, then they lose money permanently, because there is no middleman to recover our payment. (Is bitcoin the future of Money?)
so Payments are irreversible if the user makes an error.
so everything goes on software, you very well know that software is not emotional.
and other things that it’s very difficult for the average person to understand and use for the common man.
and also common man is not financially literate and handling lots of private keys is difficult for them. if one of them lost the private key, so they lose the whole money, present in that amount.
Some people say Wallet handles your all private key,
so for this, I say most Wallet is hacked and a valley employee stole the private key and get all the bitcoin, that account has. and we can’t believe in their securities practices, because, this is not regulated properly.
So common man doesn’t care much about decentralization or a middleman-free system.
they only care about, whether my transition is complete or not
so the common man needs this type of system that is easy to use, and if makes any mistake gives forgiveness and does fast payment.
this is from the common man’s perspective, now let’s see the Governments perspective
before, that question arises, like whether is government adopts bitcoin-type crypto as a currency and runs properly.
so the government does not accept or run this type of currency, Because,
to regulate the economy, the government should have control over the money supply, and its importance.
if the government runs the bitcoin as a currency, then as we discussed previous article, ( above link) the deflation starts, and the great depression comes again, so we go 1000 years bank, in that time central bank does not exist, or if exist they don’t control the money supply. (Is bitcoin the future of Money?)
and it’s too difficult to manage the money supply and it’s very difficult to run the economic cycle properly.
In the economy, have the more transaction so
Bitcoin, can’t handle that many transactions in small time, because of its scalability problem and the delay in executing transactions.
So normal times, not the common man or government, doesn’t leave their own currency and does not adopt the bitcoin currency.
but those countries can adopt bitcoin as currency because their currency has a bad time.
just like in 2008 in Zimbabwe countries, and in 2019 in Vanizola, got Hyperinflation
In Hyperinflation, inflation can goest up to 10,000,000% in a year.
so bitcoin is not that much Volatile, so these countries use Bitcoin as a currency.
so when bitcoin was created, they got an argument or say rules, for bitcoin or purpose.
government or central bank can not increase their money supply and decrease the money value. (Is bitcoin the future of Money?)
This means those people make money very hard, and some money in the bank, their money value decreases
so some people develop such a currency ( bitcoin0 in that way so government or central bank can’t devalue it.
so funny thing is that now a day
Those currencies use to cut down the bank and government money system. so that currency technology, use to run the banking process smoothly and make it more powerful and that currency is regulated by Government.
so the final conclusion is that bitcoin is not a future of money.
but may happen, this, people want crypto-type currency then, they can develop their own virtual currency like rupee coin, etc.
so this is all about the is bitcoin the future of money.