Bitcoin, which is currently the most popular cryptocurrency in the world, was introduced and launched in 2009. The launching marked an exceptional beginning of blockchain technology as well as digital currencies. Since then, despite the fluctuations in the price of the crypto coin in the market, bitcoin is presently the most valued cryptocurrency. According to CoinMarketCap, one of the largest and prominent trading and exchange platform for cryptocurrencies, the entire worth of the total bitcoin in circulation as at January 15, 2020, is 156.7 billion US dollars. The value of bitcoin in the market is incredibly high that it has been introduced and also utilized as a means of payment for goods bought and services rendered. The equivalent US dollars worth of 1 bitcoin is currently 10,298.60 USD.
Move Over USD
The mass adoption of bitcoin as a means of payment has made it a reliable alternative to fiat currencies like the US dollars, Euros, pounds and others. It is gradually replacing the use of fiat currencies for transactions and it has penetrated virtually almost all sectors of the economy, such as the health sector, the financial industries, employment and recruitment, and many others. The obvious gradual replacement of the US dollars and other fiat currencies by bitcoin is majorly owed to the blockchain technology on which it is built. The Decentralized system (no central authority) of the blockchain technology used in the development of bitcoin has been one of the core reasons why it has been accepted as a substitute to the US dollars. Other features of bitcoin that makes it dependable are anonymous or pseudonymous, immutable and irreversible.
Gold VS Bitcoin
Is Bitcoin more valuable than Gold? The total estimated amount of gold in the world presently is about 195,000 tonnes. In a Tonne of gold, there are 32,150.7 Troy ounces in one tonne of gold and the current value of an ounce of gold is 1,558.15 USD. Calculating the total amount of the gold in the world, the amount of the entire gold is around $9.8 trillion. Comparing this value with the worth of the total bitcoin in circulation, which is about $156.7 billion, it is evident that bitcoin is less valuable than Gold. However, if we are to check the unit price of both bitcoin and Gold, $10,298.60 and $1,558.15 respectively, bitcoin has more worth than Gold.
Take in the Risks
Regardless of the high tendency of bitcoin to replace the US dollars, there are certain risks and concerns that surround it. One of the major issues associated with bitcoin is the volatility. This has posed as the primary barrier faced by bitcoin owners when they use it to perform various transactions. Bitcoin prices has continued to fluctuate invariably in comparison to USD and other fiat currencies. Other safety risks linked to bitcoin include vulnerable wallets and storage device (both online wallets and hardware wallet), cyber threats and hacking, unregulated mining on exchange platforms and others. Amidst the risks, bitcoin can be used to purchase different items and to make digital payments. Some of these items include, food, electricity bills, tourism charges, university fees, transportation services, etc. Bitcoin can also be used to buy a house.
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