Is Bitcoin the currency of the future? Bitcoin’s recent fluctuation has raised questions about what the future of digital currency will be. So is Bitcoin the currency of the future? Or is it an inflated balloon?
Bitcoin’s rapid rise is on everyone’s lips. On the one hand, there are those who say that digital currency can be the gold of the future, on the other hand, think that it is a completely inflated bubble.
While Bitcoin broke a new record by reaching the level of $ 58,000 last Sunday, it fell to $ 46,000 on Tuesday morning. This decline, which came after Tesla’s CEO and Bitcoin fan Elon Musk said that “the cryptocurrency may have been overvalued.” This decline, especially in the hands of those who were skeptical of Bitcoin, continued to rise for a while after last Tuesday. Last Wednesday, the cryptocurrency rebounded and traded above $50,000.
Bill Gates, the founder of Microsoft, comments on Bitcoin, “My opinion is that if you have less money than Elon you should probably be careful.” So what history can tell us about this cryptocurrency?
Is Bitcoin The Currency Of The Future? “CANNOT REPLACE GOLD”
Bitcoin and gold are incomparable, says Bernd-Stefan Grewe, a professor of history at the University of Tübingen in Germany and who studies gold.
Grewe states that gold is universally accepted worldwide and can be easily converted into local currency wherever it is located.
According to Grewe, reminding that Bitcoin is not like that, it is very important to be able to convert digital money into a local currency. “If things change and I want to convert Bitcoin quickly, who guarantees that I can exchange it for another currency and convert it to the price I want to sell?” Grewe said. she asks. He adds that it takes days to cash out Bitcoin.
These trading points will undoubtedly play an important role in determining Bitcoin’s future success. Because most of the scams related to Bitcoin are caused by the anonymity of digital money exchanges. Bitcoin exchange records and secures their transactions with the blockchain. However, the anonymity of the accounts that send and receive Bitcoin may also be in the business of criminals. According to the authorities, information can still be collected at these transaction points.
“The original idea behind Bitcoin was that you could not track transactions. And have an alternative currency that is independent of central bank influence. This is a bit naive though,” says Grewe.
Grewe, who predicts that with the increasing interest and acceptance of Bitcoin. The interest of legal and regulators will also increase, pointing out that criminals can make money exchange through Bitcoin, “State institutions will definitely follow. At least I hope so.” So what awaits Bitcoin in the future? Just like any other currency. There could be tremendous inflation. “