To the Age of Digital Currency
Bitcoin had really come a long way. Who would have thought that a digital currency developed by a mysterious programmer who named himself Satoshi Nakamoto would become as big and as important as it was today.
Maybe not even Satoshi Nakamoto himself realized the impact of the technology that he (and his team of programmer?) had developed. Maybe he had the foresight to see that the technology would have an important role to play in the future but would have not expected that it would become so big that governments and central banks could no longer ignore it.
To many, the invention of Bitcoin and the technology behind it, the blockchain, had without a doubt paved and leads the way to the age of digital currency.
A Very Bumpy Road
Although Bitcoin was leading us to the age of digital currency, the road that it has to take was full of bumps and obstacles. Skeptics, critics, industries, banks, and governments stood prominently and menacingly in the way of the grandfather of cryptocurrencies – making the already difficult road more difficult.
Because almost all cryptocurrencies are correlated to Bitcoin, whatever happen to Bitcoin would also affect other cryptocurrencies. In the event that price of Bitcoin drops so would the price of most altcoins. And considering how volatile Bitcoin and cryptocurrency in general was, such an event happened a lot. And I mean a lot.
The other bump that keeps hampering Bitcoin is Bitcoin itself. The current Bitcoin is far from the digital currency that Satoshi Nakamoto had envisioned. The limited block, the less than desirable transaction speed and the horrendous fee greatly hinders the potential of Bitcoin.
In all honesty, countless cryptocurrencies had surpassed Bitcoin when it comes to practicality. Cryptocurrency like BCH makes for a better digital currency. Heck, even Dogecoin, the infamous meme coin had better usability and was more practical than Bitcoin.
Bitcoin was so flawed that a fake like Craig Wright, who claimed to be the founder and inventor of Bitcoin, Satoshi Nakamoto, wanted to replace Bitcoin with BSV as the one true king of cryptocurrency. Of course there’s a very little chance of this happening…
Too Big and Too Important to Ignore
Despite Bitcoin’s flaws, the grandfather of cryptocurrencies was still the most popular cryptocurrency in the market. Although it was less practical compared to other altcoins, many people still preferred Bitcoin to other cryptocurrency – even though it was mostly being treated as a store of value than anything else.
Bitcoin had grown really big in recent years, and its importance as a currency could no longer be ignored by the government and the central banks. In a report released by the Deutsche Bank, it was stated that Bitcoin had become the third largest circulating currency in the world next only to the US Dollars and Euro. And with its current market value of more than $1 trillion, it’s not hard to see why.
Knowing this, it’s easy to see why the Central Bank of Nigeria and the Parliamentary Government of India felt so threatened to the point that they want all (private) cryptocurrencies to be banned from their respective countries. These countries either want to ban cryptocurrency for good or to create in order to create their own digital currency like what India was planning.
Since Bitcoin rise as one of the most prominent currencies around could no longer be stopped, many banks, including central banks are exploring the possibility of adding Bitcoin and other cryptocurrencies in their services. Governments all around the world are now thinking on how to properly regulate cryptocurrencies so that their countries currency won’t be disadvantaged. These regulations could either have positive and negative effect on cryptocurrency as a whole.
But no matter what the case maybe, the path to the age of digital currency had been opened and Bitcoin and other cryptocurrencies are here to stay.
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Alright, that’s all from me for now. I hoped you enjoy reading my article. Thank you and I wished everyone a blessed day.
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Source: https://news.bitcoin.com/deutsche-bank-bitcoin-3rd-largest-currency-too-important-to-ignore/
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Based solely on its price history, http://Bitcoin has been a winning investment. In January 2009, it had no value; 12 years later in February 2021, it surpassed $50,000 for the first time. However, it can move violently, and unlike traditional markets, there are no circuit breakers or closing bells to stop trading.