Bitcoin is a combination of two terms, the first is a bit, and the second is a coin. A bit represents the smallest database unit in computer and overall technology, whereas a coin represents financial essence. Satoshi Nakamoto implemented the basic concept of a cryptocurrency and named it bitcoin.
Satoshi Nakamoto not only gave us bitcoin but also blockchain. Blockchain is a public distributed ledger or a more technical and structured database. In terms of bitcoin, blockchain stores information regarding bitcoin transactions. The Japanese inventor composed bitcoin to make the transactions possible without any centric authorities and government powers.
Undeniably the concept of bitcoin was ahead of its time, but people failed to acknowledge the actual essence of bitcoin. However, bitcoin trading was profitable from the very first instance. If you want to get profitable results in your bitcoin journey, you can check popular platforms like this trading app for more details. Furthermore, after the arrival of bitcoin in the mainstream market, people started to realize that bitcoin is also an excellent payment method.
In recent times, the co-founder of Twitter, one of the leading public holders of bitcoin, stated that bitcoin could become a one-world currency in the future. As a result, several tech-heads, economists, and organizations started to express their views on this subject. Below mentioned is a complete portion defining whether bitcoin can become a one-world currency in the future.
Is Bitcoin the One World currency?
Bitcoin has also acquired an exceeding extent of popularity as a payment method. As a result, Bitcoin is the largest cryptocurrency in terms of market cap and trading volume.
The so-called inventor of bitcoin did not invent bitcoin as a payment method.
Even bitcoin’s inventor was not familiar with the idea that bitcoin would acquire such high store value in a nominal range of time. Nevertheless, bitcoin as a currency is very robust beyond the shadow of a doubt. One of the main reasons El Salvador adopted bitcoin as a legal tender.
However, assigning bitcoin as a one-world currency is a very challenging task. All the more, according to some proficient analysts, one world currency can only take place at the instance of fruition. To sum up, bitcoin cannot act as one world currency; here are some reasons why bitcoin is not an appropriate one world currency.
Since bitcoin is a decentralized currency, several countries have underlined bitcoin and cryptocurrencies as a financial threat. However, government authorities do not back up Bitcoin, and the value of bitcoin is exceedingly volatile as of other currencies.
Many countries are now coming up with solid cryptocurrency regulation rules. All the more, China has even banned bitcoin and other cryptocurrencies in the country.
China recently announced a cryptocurrency crackdown meant to ban bitcoin mining and accept bitcoin as a financial intuition. In a nutshell, bitcoin cannot become one world currency as not every country shares a similar view regarding bitcoin.
Not the Only Currency
The cryptocurrency industry is expanding day by day. Bitcoin is the first-ever cryptocurrency; however, conferring the basic concept of bitcoin, there are now tons of other currencies. In addition, there are now more than 9000 altcoins.
Bitcoin is not the mere contender to become a one-world currency. All the more, cryptocurrencies and fiat currencies are also in the race to become a one-world currency. There are several major fiat currencies such as USD, CAD, Pound, and many more. Fiat currencies are much more stable than bitcoin to act as a one-world currency.
One of the prominent reasons why the store value of bitcoin is inclining is its finite supply. Moreover, bitcoin halving is decreasing the supply of bitcoin units. However, bitcoin’s limited supply is a drawback if bitcoin becomes the one world currency.
A limited number of bitcoin units will reach limited people only. However, the fact might stun you that bitcoin is only 21 million units and no bitcoin unit.
Undeniably, users can collectively vote to increase the limit of bitcoin units. Still, no one will vote to increase bitcoin’s limit as it will increase the supply of bitcoin units and decrease the market value of bitcoin units.
The portion mentioned above is a complete portion of why bitcoin cannot act as a one-world currency.