Disrupting Money — The Rise and Impact of Bitcoin
Just two decades ago, digital money would have seemed a far-fetched idea to the ordinary person. We were used to fiat money, so having money in a virtual form would have caused shock. People have a unique relationship with money. Everyone likes money, which is why everyone is trying as hard as possible to accumulate as much as possible. Bitcoin provides numerous investment opportunities for everyone. With bitql site, you can find all the help you need to start trading Bitcoin.
Money symbolizes wealth and status in society — those with lots of it are respected and even revered. Every year, Forbes magazine lists the world's wealthiest people. And this illustrates how money is a core element of our society. With money, people get almost anything they want.
But what does money mean? Is it the notes, coins, or savings in the bank? What form does money have? Conventionally, fiat money is in physical condition. You can hold and see the US dollar. But what about digital money?
Bitcoin and Digital Money
The idea of digital money precedes the launch of Bitcoin in 2009. But it is this launch that made sense of what digital money represents. Bitcoin is simply a cryptocurrency or digital currency. It is money in virtual form. But beyond that, it is decentralized, meaning no government or single entity controls it.
Bitcoin came as an alternative to fiat currency. Although acceptance was first slow, this has changed, and over 190 million entities are now using Bitcoin. In the US alone, over one-third of all businesses accept cryptocurrency payments, including Bitcoin. What does this mean for fiat money?
First, it means that fiat money is replaceable. The fact that you can pay for your shopping with Bitcoin is proof of this.
Second, it means that the future of fiat money is under threat. As more people continue to accept and use Bitcoin, the need for fiat money will diminish. The government will not need to print more currency.
Third, it means that government and a few institutions will no longer control money. Bitcoin's decentralization makes it a currency with no government control.
Finally, it means that money can be universal. Bitcoin is universal, unlike national fiat currency.
Functions of Money
While still hotly contested, Bitcoin is performing the fundamental functions of money, meaning there could eventually be no need for fiat currency. Let's look at two of the primary roles of money.
Means of Payment
Money is a means of payment. With money, you pay for goods and services. Bitcoin is already doing this. Many businesses, including extensive international brands, now embrace Bitcoin as payment. This trend is likely to continue, and soon all companies will accept Bitcoin as a payment method.
Store of Value
Money is a store of value because keeping money in your bank account or at home will not lose monetary worth. It will still have value even if you keep it for ten years. Bitcoin is already doing the same. Many investors are using Bitcoin as a hedge against inflation in fiat currency. And this means that Bitcoin is a store of value, probably even better than fiat money.
Digital Era
We are already in the digital era, meaning that even the time for digital currency is here. Traditional fiat money has no place in the digital age. Being one of the first and most popular digital currencies, Bitcoin will dominate the digital currency space.
Take Away
Bitcoin is disrupting the concept of money. It is slowly replacing traditional fiat money with digital currency.