Why Cryptocurrency Will Become the Future Currency of the World?
Bitcoin has been in the news for the last few years.
On one hand, we find a group of billionaires who believe that bitcoin is propaganda at all. On the other hand, we have found a group of billionaires who think that bitcoin is the future.
On one hand, we find people who believe that cryptocurrency is a threat to the world economy. On the other hand, we find people who believe that cryptocurrency will be the foundation of the world economy in the future.
And besides, there are people who do not care about this type of things.
Anyway, for the past few months, I’ve been doing some intense research to get the sense of this whole bitcoin hype.
And today I’m about to make a very bold and calculated prediction of why bitcoin is the future?.
Hopefully, by using my calculations, you will be able to understand the future of bitcoin.
So according to me, there are three reasons why bitcoin has a future.
3 Reasons Why Bitcoin is the Future?
The most basic reason of all is what the currency really means. If you ask experts what exactly is the meaning of currency.
They will tell you that it is a standard commodity that can be traded, and is recognized by some national or international bodies.
But the truth is even if no government or official body recognizes a currency; it could still be extremely valuable.
At the same time, in spite of all the recognition in the world, still a currency could be absolutely useless.
Well, that is because a currency fundamentally does not necessarily require a recognition from an official body.
It just requires two things:
- It needs enough people who believe in a currency.
- It requires a network that can connect these believers so that they can carry out transaction
If the currency has believers that cannot get touch with each other, then the currency is absolutely useless.
Therefore, for a currency to operate, you only need two things:
- A network to connect these believers
Now when it comes to bitcoin, the most amazing thing about bitcoin is that bitcoin has a lot of believers.
And not just that, these believers also include people like Elon Musk and Jack Dorsey, who in this context are acting as influencers, which means by using their influence, they can multiply the numbers of believers in the market which will eventually get enough believers in the market to turn bitcoin into a mainstream currency.
A very simple example of the same is the 1.5 billion dollar worth of bitcoin was purchased by Tesla.
Now when Tesla publicly announced that it has invested 1.5 billion into bitcoin and the fact that Tesla now accepts bitcoin, millions of people all across the world started believing in bitcoin and started investing in bitcoin.
As a result, the value of bitcoin shot up. Therefore, when more such companies will start using their influence, bitcoin will automatically become main stream.
That is my first reason why Bitcoin is the future, which is the number of believers of bitcoin are increasing slowly and sturdily and thanks to the internet, the network to carry out this transaction has always existed.
Something has to do with my second reason, which was mentioned by a start-up legend known as Naval Ravikant.
Naval said that if the country begins to understand that the value of its currency is decreasing, or maybe if it is on the verge of hyperinflation, it will use its assets to buy bitcoins.
And will then announce to the world that they have purchased bitcoin, and will then start using it as currency, and the same applies to any type of financial emergency.
This may sound like a far-off idea, but the reality is, it's happening in front of our eyes, and it's just that we haven't paid attention to it yet.
Now this has got something to do with the particular investment that the Tesla made into bitcoin.
So, if you are following the news, you would know that Tesla saw a meteoric rise in its stock price in 2020, so much so that Elon Musk himself saw a $140 billion increase in total assets.
So putting that straight, while on one side Tesla’s stock is shooting up, on the other side, there is bad news coming from the all across the world about the poor performance of the company.
Now this is enough to get the investors to panic during the situation wherein there’s already a speculation that it could be a bubble.
And over here, if you see, Tesla has smartly used its bitcoin investment to overshadow all the bad news so that it can drive confidence among the investors and eventually prevent a stock crash.
So if you see what happened over here is that a billion dollars company has used its influence to get millions of people to believe in bitcoin and then eventually it has saved itself from the economic bump.
Now my question to you is, if a billion dollars company like Tesla could do it, can you imagine what will be the impact if the country like India or china does it?
And as far as my prediction is concerned, someday some giant country will end up doing something like this and there is a possibility that within a fortnight, bitcoin will become mainstream.
With that we come to the third reason, it is pretty straightforward, and that is the crypto war between US and China.
Now I don't know how many of you are actually following this news, but China is currently mining about 60% of the bitcoins in the world and the United States now wants a piece of the pie.
So billions of dollars are flowing to set up giant setups to outpace each other.
So my point is, if two giants superpowers are fighting about something, it is very less likely that will be something stupid and that is my third reason why I believe bitcoin is the future.
Now, most people will say that you know, Bitcoin has a lot of problems. Energy consumption is high, the currency in itself is extremely unstable, and 100 other reasons can be listed.
But here’s the thing….
There are hundreds of problem with the internet, there are hundreds of scams happening in internet banking, and there are serious security issues even with your phone or laptop that you’re using right now.
But if you see, they are an integral part of our lives.
Why? Because they have more advantages than disadvantages and similarly bitcoin as a currency and blockchain as technology have got such a huge potential that it is perhaps beyond the imagination of 99% of the world’s population.
And this is why even if you do some deep research to get close to an inch to understand its potential; this can give you an opportunity that even 99% of the world's population cannot understand.
That’s it from my side. These are my opinion… share your opinion too in the comment section below.
Also, apart from bitcoin, there is one more trend is growing around us that is NFT-Non Fungible Token. Check out this article too, if interested.
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