According to the recent researches, the number of users who actively uses Bitcoin is going to reach five million by 2019. However, the discussion on whether or not the virtual currency has the capability to become the global currency continuously takes place among the technology and financial enthusiasts. But, the real talk is what exactly the Bitcoin is and should it become a global currency in the future?
What is Bitcoin?
In simple words, Bitcoin can be defined as a digital currency that was created by the Satoshi Nakamoto in 2009. However, the real identity of this man is still anonymous and no one really knows who he is. This digital currency offers lower transaction fees to the users as compared to the traditional financial system.
How does it work?
The Bitcoin are created by the individuals and businesses with the use of specialized software that solves the mathematical issues for making unique blocks in a chain. After that, these blocks are added to the Bitcoin public ledger for creating block chains that recognize the Bitcoin and allow them to be unique for confirming the ownership and legitimizing the transactions. It may look like unimaginable for some people, but it actually has the perfect potential to become a global currency.
Reasons for success
The main reason for this digital currency to become popular among the people is its capability to enable fast and cheap online transactions without any requirement for the traditional banking system. In June 2017, the price of one bitcoin passed $2,200, which is more than double as compared to $1,000 in June last year. This shows that the interest of the people is increasing every year.
The digital currencies can be transferred easily to any part of the world within some seconds. Moreover, it has become capable of gaining more mainstream exposure with the adoption of global companies, such as Tesla and Dell. Additionally, the smaller companies are also following this strategy. It allows the people to order coffee, birthday cake, flowers with the bitcoins.
Online betting with Bitcoin
The online casinos have also started accepting Bitcoin as a mode of payment that enables the players to add money to their wallet easily. One of the best examples of online casinos who accept bitcoin is Bitcasino. They have seen a tremendous growth in their business due to this.
Nations backing digital currency
China and Japan, are the some of the countries who are strongly supporting the digital currency and pushing it as a new global currency that should free from the influence of United States. Recently, the European Union has also said that the digital currencies should have an exemption from some taxes in the same way to hard currency. It can be strongly beneficial for the viability of bitcoin as a currency.
Major Blocks for bitcoin to become a global currency
The number of retailers accepting bitcoin is increasing and awareness of the digital currency is on the rise and taking its confidence to the peak. However, there are many blocks that are making it difficult for the digital currency to become mainstream. One of the prime examples of this is the rejection of the first proposal for a Bitcoin Exchange Trading Fund by the US regulators in March 2017. What could be turn out to be the milestone in the history of digital currency resulted in the fall of the bitcoin’s price.
If you are a beginner, then it is extremely difficult for you to buy even a single bitcoin in the present days that is at $2,288. In the past some years, the value has risen exponentially as a result of illegal activities. The bitcoin involvement in the cases, including money laundering, ransomware, and cyber crime is also increasing every year because it is completely unregulated. The popularity of the digital currencies also led to the increase in the DDoS attacks on the Bitcoin exchanges. Some of them even result in people almost losing all of their Bitcoin. The security concerns have always faced by the digital currency platforms in the past years.
Indian government views
The government of India has a different point of view on the Bitcoin and other similar currency. According to their recent statement, the utilization of virtual currencies doesn’t come under the authorization of RBI and it can result in the breaching the anti-money laundering provisions. Moreover, the Reserve of India has warned the virtual currency users and traders about the risks arise from their use. They state that the involvement of bitcoin in money-laundering and terrorism can be a danger for the country.
The government of India also asks for the public opinion to know about the people thinking about the virtual currency. However, the public views on the virtual currencies are pretty much mixed. Some of them are in favor of it while others are completely against it. Time will tell what kind of scope digital currency holds in India.
These kinds of failures result in creating obstacles in the growth of bitcoin and becoming a global currency. Bitcoin may have proved itself a new monetary paradigm, but still, there is a need for many strong attempts for making it a mainstream currency. We are not dismissing Bitcoin out of hand, but it needs to eliminate all the flaws first in order to become a worldwide currency.