There is no way crypto will fail, and it is here to solve the problems related to currencies. The future of money and coins is digital. But we have many cryptocurrencies, with bitcoin leading. Bitcoin was the first crypto to be launched in 2009.
There have been fluctuations and complaints surrounding bitcoins. Some people think that other currencies like Cello, Ethereum, Litecoin will replace it. The reasons for such assumptions include:
Bitcoin lacks real value
This could be true, but experts have defended bitcoin, saying fiat money has value. The government always issues their value to the related currency being used by citizens. Government coins like the US dollar have “legal tender” written on top. The Indian rupee has “promised to pay the bearer,” the governors say. Every nation has the mandate to tax its citizens. Some states have accepted bitcoin, while others like China are against it. But there is a top institution fighting for this digital currency to be used in everything.
If you are free and willing to pay some amount for a certain service, that is a value. This sounds like artwork. The financial advisor says that bitcoin is not qualified among the coins with value. This bitcoin issue affects its market.
Lack of stable market force
Most currencies are being backed up by their government. The central bank will always move a step ahead into the market to sell and buy other states’ currencies to make it stable. However, that is very different when it comes to bitcoin. The volatility in the market is affecting everything. When you buy bitcoin at a low price, thinking it will increase abruptly tomorrow is a very different logic. There is no promise that the coin will rise in price since there is no big player to stabilize it. Such bitcoin issues result in negative goals.
However, the current situation seems to bring hope. Many large institutions are buying shares, which will make it easier to control the market, a report by CNBC.
Bitcoin competing with national currencies
Some bitcoiners have announced that the currency will replace some national currencies like US dollars. Let’s imagine the central bank canceling the EU, China, US currency only to employ bitcoin. Will all countries accept using a single currency? China has already declared a crypto ban. This will be difficult, but crypto investors are still pushing hard to ensure their currency dominates every country.
Blockchain technology and bitcoin aren’t the same
Investing in blockchain tech is not bitcoin. US dollars are backing some crypto because they tend to be stablecoins. They use the latest blockchain technology. These coins fluctuate at a low rate. Such bitcoin issues make people opt for other coins.
Prominent people trick
It’s not a lie that prominent people like Elon Musk are still pumping their profits into bitcoin. But, of course, many people support the coin and have predicted a bright future. So despite all the negative talk about bitcoin, it will continue to prosper.
The Covid-19 has led to a rise in liquid money. Furthermore, the government policies and pressure from non-governmental organizations have caused a rise in value. We are not sure how long the coins might remain at that price due to the pandemic. There is no way to predict the future because the power of purchase from people influences digital money.
Bitcoin might indeed have the edge over fiat money. But it will take time to overtake them fully. Moreover, central banks have started building hybrid currencies. They could also employ crypto, which would affect others, including bitcoin, a report by CNBC.
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