The argument about Bitcoin’s future is gained momentum because of the stability and high growth of Bitcoin market. The Bitcoin markets stability and enormous growth started an argument because Bitcoin will probably replace traditional curries within a decade. Transaction of Bitcoin gained a massive growth in all across the world. Because of that lots of companies created to provide users with the facility of Bitcoin transactions.
Considering Bitcoin as a Currency
In global economy Bitcoin is considered as a “ next natural step “ due to its growth and development. To become a real currency there is three principal tests and Bitcoin already passed one.The success in the first test highlights the use of Bitcoin as an account to hold and transact funds. Fiat currency which is supported by governments have suffered from regular periods of economic stagnation.
Clients are also gets frustrated because of how banks are handling their business transactions. Because of this reason Bitcoin’s position has strengthened and now Bitcoin has a potential to replacement traditional currencies.
Bitcoin’s relationship with Leading Fiat Currencies.
The collapses of world’s major currencies has increased the Bitcoin’s value in the market. Bitcoin has been able to recover its previous losses in shorter time periods unlike fiat currencies. Bitcoin’s purchasing power has increased back then you could’ve only bought birthday cake with 5.000 Bitcoin. Now 5.000 Bitcoin worth $30 million.
User trust on Traditional Banking Methods:
People still trust the traditional banking sector even though the economic cashes and the instability of the financial market. This is because banks are the only financial institution people have ever known. One of the other reason that people still trust banking sytstem, is not knowing and not being educated enough to see differences between Bitcoin and Fiat money. Huge printing capacity of fiat currencies has earned the trust and confidence of people. For cryptocurrencies that is can not be done directly.
Barriers of Bitcoin
Even though Bitcoin has provided monetary contributions like other fiat currencies, it has to function as a store value. Like the U.S. dollar Bitcoin should hold a long-term value. Another barrier for Bitcoin is its functioning as a unit of account while replacing the traditional currencies. Explaining the regulations and exhibiting governance is an another challenge for Bitcoin. Many of the countries has corrupted governance and lack of missed regulations to implement cryptocurrency transactions successfully.
