Real Money vc. Digital Money
Money. The world is designed in a way that we cannot live without it.
Though, what is money? We are used to traditional money, which we can exchange for any goods or services, say, for a piece of meat or for paying coursework writing service. We are used that we can buy for money the most things that make our life convenient. We know as well, that money is regulated by politicians and governments, hence, money is the means of power.
Now, just imagine something, ok, money, but a new form of money. It is decentralized, not regulated by anybody. You just use it, for the same functions as traditional money, but it doesn’t have a central authority, or a central server, or somebody who will influence it.
Money that is not Regulated – Does It Sound Like Science Fiction?
What would you feel if we tell that this science fiction is already in our lives? It is still limited by many factors, though it exists and it is becoming more and more popular.
Yes, we are talking now about cryptocurrency. To be more precise, about bitcoin, as it is one of the most popular representatives of crypto coins.
Yep, maybe not all have even heard of this kind of money, and there are reasons for that. Do you think that is something that can be easily accepted? Well, just some moments:
- Bitcoin is not regulated. It means, the government cannot control it or influence it. – Result? The government is losing one of the main means of the influence and power;
- You can make instant transactions, for free. – Sounds good? Sure, but not for banks! Just think, where they will get they profit from if all transactions will be made directly, and without any fee?
- Bitcoin is available anywhere, and anywhere it is the same value. No need to exchange it from one currency into another. – Banks? Just forget about them, as they would become useless then. National currencies? No way, there is one currency everywhere.
As you can see, at least two main players in the world policy and economy wouldn’t like to have cryptocurrency as a mass currency. Governments and banks are those who are the least interested in accepting bitcoin for mass application.
Bitcoin Is Still Unavailable for Majority of People
Even though bitcoin sounds like a perfect money, the money, that can change the financial world completely, this money is still unavailable for most of people.
Managing bitcoin transactions is very complicated, actually, it is more suitable rather for tech savvies than for ordinary people. Though, many believe that as soon as bitcoin can be managed as simple, as say, sending a message on Facebook, it will become increasingly popular and may become a new universal currency. Some start-ups, like Tigereum, are already working on that, and that gives hope that bitcoin soon will be accessible even for those who don’t know much about complicated technologies.
Panacea for All Financial Issues?
It looks like as soon as the bitcoin is easy to manage, it will solve all issues that can arise with money. All exchange rates will become unnecessary, banks will die, as they will not have to do anything anymore, transactions will be free, etc…
Though, not all is that simple. There is a lot of skepticism about bitcoin and cryptocurrency. Moreover, this skepticism is expressed by leading financial analysts, such as JP Morgan`s CEO, Jamie Dimon, who believes that bitcoin is nothing more than a “fraudster”. Though, even JP Morgan is going to earn from that fraudster, as the platform is going to include bitcoin trading into the range of the services. Sounds too good for just a fraudster, doesn’t it?
We shall agree though that there are reasons for skepticism. Bitcoin is not backed up by any tangible things, like, say, the US dollar, that used to be backed up with gold reserves. Or, say, any other currency, that is backed up by the country`s economy. Bitcoin is as it is, a digital coin that has the value which is implied by users. It doesn’t look too reliable, though, nothing new is too reliable, it is just the way we perceive it.
Disruptive Technology or Scam?
Is bitcoin a disruptive technology or just a well-organized scam? Both can be, depending on how we perceive it and how it will be developing.
One is sure though: bitcoin is a completely new approach to all financial system, the approach that can change the financial world completely. Time will show how viable it will be, but for now we see that the bitcoin value is growing immensely, cryptocurrencies are accepted and legalized in more and more countries. Just some steps are missing to make it a widely used currency, and these steps are being made now.