Satoshi Nakamoto wanted Bitcoin to revolutionize the conventional finance ecosystem. Over a decade later, Bitcoin has changed the way people perceive money. Perhaps, Bitcoin presents a continuation of money evolution. From barter to the Mesopotamian Shekel’s appearance 5,000 years ago, to gold and paper money, what people consider cash has changed.
So, is Bitcoin the next step in this evolution? Will Bitcoin replace people’s electronic accounts with conventional banks and paper bills? Bitcoin has undoubtedly influenced people’s perception of money. Also, this cryptocurrency works as an asset and a currency. That’s why people use platforms like the bitcoin-profitapp to convert fiat money into cash.
Essentially, you can register with such platforms to start purchasing or selling Bitcoins. And these platforms make cashing Bitcoins relatively easier. Also, people that can’t afford Bitcoin mining capital can buy this digital asset on these platforms. But this is just an aspect of the Bitcoin revolution.
The Bitcoin Revolution
Bitcoin has made significant milestones because it was the first successful cryptocurrency. The 2008 financial crisis prompted Satoshi Nakamoto to launch Bitcoin. According to this anonymous entity, people have lost faith and trust in central banks, governments, and private banks.
The Bitcoin revolution started with a nine-page proposal outlining the Bitcoin details in the cryptography mailing list. This virtual currency promised to serve as an exchange medium, allowing parties to transact financially with anonymous digital identities. What’s more, this digital currency would not use a trusted intermediary like a credit card company or a bank.
Essentially, Bitcoin’s primary concept is to replace people’s trust in financial, public institutions with a consensus mechanism. Bitcoin uses blockchain technology to post all transactions on general ledgers. Multiple, decentralized computers maintain the database, and every Bitcoin user can see the transactions.
The Role of Money
People need money to pay for services or products. Ideally, money’s primary role is to serve as an exchange medium. Today, some people use Bitcoin as an exchange medium. And what draws some people to this cryptocurrency are low costs, fast transactions, and convenient value transfer. Since Bitcoin is a global payment system, you can instantly transfer funds from one continent to another using this virtual currency.
But Bitcoin serves more purposes than acting as an exchange medium. Bitcoin’s price fluctuates rapidly. Bitcoin’s volatility is apparent when you look at the price swings within a short period. Therefore, some people trade Bitcoin for profits. What’s more, Bitcoin’s limited reserve means its demand will exceed supply at some point. When this happens, Bitcoin’s price might be very high if the current trend continues.
Consequently, some people purchase and hold onto their Bitcoins, waiting for their price to increase to sell them for profits. Perhaps, this explains why Bitcoin’s use as an exchange medium hasn’t taken off as its developers anticipated.
The Future of Money
Bitcoin is a revolution that prompted the creation of other virtual currencies. However, the Bitcoin revolution hasn’t happened the way Satoshi Nakamoto anticipated. Nevertheless, this virtual currency has changed how people perceive money. It has prompted some people to rethink the role of governments and banks in the financial sector. Currently, Bitcoin is not a widely accepted exchange medium.
What’s more, its anonymity makes it attractive for illicit and illegal transactions. Also, Bitcoin’s volatility hinders its viability as an exchange medium. People have also complained about the negative impacts of Bitcoin mining on the environment. However, these things might change in the future. What’s more, Bitcoin adoption is increasing in different places. Countries like El Salvador have made Bitcoin a legal tender. Thus, Bitcoin could eventually become an acceptable form of money alongside fiat currencies.