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?