Bitcoin is potentially a passing fad or the world’s greatest economic reinvention. There are opinions out there on each side of this big argument, and only time will tell where Bitcoin will lie on the total echelon of economic growth, stability, and its pursuit towards globalization. So what are these two sides arguing in detail? Truthfully, they both have their merits, but the side most intriguing here is the health of Bitcoin. What is its potential and what must it do to carve that path?
Independent ValueBitcoin has value, but the argument of ‘what’ kind of value is open for debate. There is a program right now that tracks the immediate current worth of Bitcoin. But what it means in worth is generally, how many dollars is a single Bitcoin worth when transferred or converted? This time tomorrow the trade value could be very different than it is now. Though Bitcoin has hit a bit of a plateau in recent months, so the numbers should be more consistent. Regardless, this poses an important problem. Bitcoin only has worth relative to the United States dollar. In other words, people are valuing it for what other currency it can be transferred for.
Becoming a CurrencySo what does Biotcoin need to do to gain value not just literally but intrinsically? In short, it needs to establish its own valuation independent of any other currency. Detractors of Bitcoin say that there is entirely too much opposition against instated and government backed currencies for this to ever really happen. Ultimately, the citizens of any country (for the most part) have faith and trust that their money will be worth something). What is backing up Bitcoin? This authority needs to be earned, and it could take decades.
This is the greatest problem facing Bitcoin. Does it have the cultural impact to reach a trust that goes beyond its ties to other currencies? Furthermore, people need to be able to use it and buy with it very accessibility for it to ever stand a chance as a major currency. Anyone can theoretically create a currency. But are there enough people willing to take it for being worth anything?
Bitcoin is potentially chaotic as well as brilliant. Its future is questionable. There are all sorts of obstacles facing the famous cryptocurrency that a mainstream break for the long term is difficult to see. But there are many people fighting for Bitcoin’s embrace because they believe it can reinvent the way in which people see money, and potentially save the economy forever. The below considerations take a good hard look at what is blocking Bitcoin now, and what that means for its success both in the coming months and in the next decade.
Legality QuestionsBitcoin is not illegal, but that does not stop detractor’s from claiming it is. Worse yet, it does not stop legislation from making it so. The legality of Bitcoin is a current issue because it could be changed in the future. Government’s in countries outside the United States are banning major banks from even be open to Bitcoin and all digital currencies. Now, the United States is a bit more concrete in its structure, and very few banks are even willing to work with Bitcoin in any capacity. But it is not illegal for them to choose so, and that distinction is incredibly important. The illegality of digital currency confirms that it has absolutely no value in the mainstream.
Not Enough SupportBanking institutions, unsurprisingly, have turned a blind eye to Bitcoin. Government institutions see it as little threat to the dollar, for the most part, and are unwilling to really go down that road for now. In all, Bitcoin needs more support from investors as well as users. This is a major obstacle blocking growth. The expectation that it is a niche thing will keep it restrained and unpredictable. Interestingly, banks and government bodies will go where the people go. Support is an issue that will resolve itself on the major end when enough people are using it as a valued and faithful currency.
Something can change at the drop of a hat, which could make Bitcoin a game changing innovation or a total failure. But it has, at the least, introduced these concepts to the mainstream and it is now up to the public to run with the torch long enough to make it the future.