It is easy to see that the world has moved to a fairly modern monetary practice. We now talk less about cash and more about how to transfer money safely from one app to another and from one account to another digitally.
Transactions via paper are considered to be less safe especially because a number of other alternatives have shown up. It is not long before paper currency becomes completely irrelevant and be replaced by something else: Digital currency or as most of us like to call it, cryptocurrency.
Where Does Cryptocurrency Find Its Roots?
In 2011, a research was carried out that proved how 90% of the money that is present in the world exists only on computer servers. The records show a total of $60 trillion circulating around the globe at this very moment but authorities can only track $6 trillion. The rest is digital, in your online accounts and servers where the money can’t be touched.
When the concept of payment and exchange of funds had already been digitized, it only made sense to introduce a currency that would seem more relevant at this point.
Then enter the cryptocurrency!
Satoshi Nakamoto laid down the foundations of bitcoin. It was defined as a currency with no central authority. The coins would be held in online accounts that guaranteed complete accuracy and minimized trust issues. Moreover, cryptocurrency could be used for transactions as well between different parties either in the form of bitcoin or by its conversion to conventional currency of choice.
Does Digital Currency Hold a Stable Future?
Now more and more people are exploring platforms that work with bitcoins and how to deposit in there. Undoubtedly, it seems to have become a new money system that can help in global growth in the near future.
Users rely on it as a reliable alternative to dealing with bank transactions and paper cash. It shouldn’t come as a surprise that these transfers are slow, unsafe, and they are becoming a thing of the past day by day.
The greatest downside was that banks can take ages to transfer money across the border. There are many inconvenient barriers that would hinder such transactions. On top of that, political differences between countries or states could mean the banks between certain regions would be completely cut off.
Amidst such a situation, it can be hoped that cryptocurrency would prove to be a stable currency in use before long.
Bitcoin May or May Not Be The Answer: Only Time Will Tell
The truth is that even the appraised digital currency does not hold the answer to many problems and obstacles.
Although the blockchain methodology has proven to be successful so far, there is no guarantee how long that would be. Cryptocurrency is putting control in the hands of many. Since there is no central authority, each participant now decides the validity of supply and transaction.
Moreover, the larger the community that takes part in Bitcoin investment and mining, more would be the chances of exploitation and frauds.
Another common issue is that some individuals or companies may have an upper hand in Bitcoin processing with their powerful processors and high-tech computers. This destroys the entire concept that Satoshi had for cryptocurrency: An ordinary coin that can help citizens participate in transactions with internet-connected computers and be rewarded.
The last blow is of legitimate accusations that state that Bitcoin can promote illicit activities. Since there is no central system to track, trade and money laundering may just become more common.
However, not to burst a bubble, but such illegal acts have existed long before cryptocurrency came into existence. So, to say, every tool can be a tool of destruction if placed in the wrong hands. Bitcoins are just one of them!
It would not be wrong to say that Bitcoin development is still at early stages and platforms that manage cryptocurrency accounts have a lot to learn.
Shift to a digital currency may prove to be a huge global experiment with a lot at stake right now. The only truth is that: disappearance of conventional money is inevitable. Even if Bitcoin turns out to be a failure in the long run, users will only resort to online payments and transactions via app instead of adopting paper cash again.
