Bitseven.com – Today the dollar is considered the main currency, which for quite a long time has been used for international payments. However, this currency is not secured in any way, same as other traditional currencies all over the world. Therefore, many participants of the cryptocurrency market insist on that the dominance of dollar in the future will come to naught and Bitcoin will replace it. And also that all the other world currencies are going to be forced out by cryptocurrencies. In this article we will try to figure out how likely such an outcome can be.
Advantages of cryptocurrency
The existing financial system is not perfect. One of the main disadvantages of traditional money is their loss in value, and sometimes this loss occurs very fast. And one of the main reasons for inflation is the unlimited emission of both the dollar and other currencies of the world. Bitcoin, on the other hand, has limited emission, which according to the developer and like-minded individuals will lead to an increase in value.
Another advantage of Bitcoin is that it is built on the blockchain technology. Because of that it saves money on large and international transfers, and also provides additional anonymity and maximum security.
Among crypto enthusiasts, it is widely believed that Bitcoin is a new word/method/system in the construction of money circulation. But, in a sense, on the contrary it is an old word/method/system. Initially money were created as a measure value for the goods and services and also as some universal tool for exchanging these goods and services between people. For a regular citizen it remained the same for the most part. But on the global scale fiat money are loans and debts. The currency enters into the economy through banks, then banks issue loans to individuals, enterprises, other banks and states. Each dollar (and other currency) that is not printed by the bank is initially issued at interest. To put it more simple the whole world money system is one enormous loan.
The second feature, that money attained in our times economy, is total control. The banks monitor all money transfers, accounts and are fully controlling them. At their own request banks can decline any transaction and block any account. Which means every user of fiat money automatically entrusts their control to banks.
The protest of the cryptocurrency against traditional money is that it is not issued to anyone at interest and is not controlled by anyone, but still saves the original money principle, measure of value and simplification of exchange. In the Bitcoin economy you don’t need to trust anyone, it is replaced with technological solution.
In the future world with Bitcoin as the main currency, the value of money is guaranteed by cryptography that cannot be changed or blocked. In this world the only “Bitcoin Bank” is spread all around the planet and works according on the same rules for the entire population. The influence of the controlling authorities is excluded here and no one trusts anyone, but everything is transparent – it is impossible to fix someone up or give a bribe.
Of course, such an approach will make the global financial system collapse so it is only but a dream for some enthusiasts. However considering the development of the cryptocurrency market, it is safe to say that this technology won’t disappear anywhere. As well as there is no doubt that the traditional and cryptographic economy will not be able to coexist parallelly. Therefore the likeliness of Bitcoin replacing the fiat currency is very high.