Viability of bitcoin as a regular currency in the future
Regardless of what happens, traders still invest in Bitcoins to prepare themselves for what happens in the future.
While Bitcoin and cryptocurrencies become more popular each year, many people wonder what the viability of Bitcoin as a regular currency is.
Investors already use all kinds of cryptocurrencies daily, but people not that invested in the digital world don’t often have access to crypto.
If we want to see Bitcoin as a regular currency, getting it into our hands would need to be easier for everyone.
However, is that possible considering what cryptocurrencies are? We are here to go around that question, so read on if you are interested in the matter.
What Does Bitcoin Need to Be a Regular Currency?
Currencies need to meet some criteria to be viable for society. Those factors are portability, uniformity, limited supply, durability, divisibility, and acceptability. Therefore, it’s important how many of these boxes Bitcoin can check.
Portability would be one of the main challenges of Bitcoins since no one can have physical cryptocurrencies on them. Fortunately, newer technologies make it easier for users to have digital wallets and mobile apps to use regardless of where they are.
Considering that, carrying Bitcoins, technically, is not that difficult as soon as people understand how to use digital wallets and more businesses accept crypto as regular currencies.
Uniformity is not an issue since Bitcoins are interchangeable. Although cryptocurrencies change their value from time to time, there’s never a Bitcoin that costs more than another, and they all are the same.
Things get a bit complex when talking about the limited supply of cryptocurrencies. While the value of Bitcoin increases over time, people keep mining Bitcoins, which increases the supply of this crypto.
Nonetheless, it’s unlikely that people are going to make more Bitcoins after 2140 since the hard limit of this crypto is 21 million coins.
Durability can have many faces. Many people see this factor as to how cash looks physically or if a dollar is worn. Bitcoins can’t get worn, but their value increases and decreases regularly, so that’s something to consider.
Divisibility can be good or bad depending on how you see it. Achieving this with Bitcoins is almost impossible since you don’t have them on paper, but things get different if cryptocurrencies become regular currencies as a whole.
The final step to becoming a regular currency is acceptability, and this mostly relies on how people adapt to it and if governments agree to have Bitcoin as a regular currency.
Many people don’t think a government would do that without managing the currencies on their own, so that could be a setback for the process.
Taking everything listed before into account, Bitcoins would need new technologies to help people adapt to it, but, as it is right now, it’s something that people could start trying.
The only problem with that is that one of the appeals of cryptocurrencies is that neither governments nor banks can control them, and taking that away from them could make them less popular in the long run. Therefore, it’s not that likely to happen in the future.
What Do Experts Say?
There’s an active debate regarding the future of cryptocurrencies and Bitcoins. Kenneth Rogoff -the Harvard University Professor of Economics and Public Policy- stated that the market capitalization of cryptocurrencies may get to its peak in the next five years.
Additionally, the DHS and FinCEN already have their eyes on virtual currencies as a possibility in the future.
Countries like El Salvador already approved cryptocurrencies as legal tender.
Although Bitcoins check many of the boxes named before, some users prefer it stays how it is to avoid losing their best features.
Regardless of what happens, traders still invest in Bitcoins to prepare themselves for what happens in the future. Doing that shouldn’t be a problem with apps such as Bitcoin System being available online.