Bitcoin: The New Money?

BitcoinBy David Fox.

Everybody has heard about Bitcoin by now. Many understand it as a way to speculate and generate value. This is much like a game of chance, like what you can find at casinos, including Bitcoin live roulette options. 

However, few understand the innovations it brought, such as blockchain technology, proof-of-work, and other arcane concepts that might bring about a global revolution. 

This article won’t delve into technical details but rather into how these technologies can herald a new era and why.

Crypto Assets for an Online World

Fiat money is an excellent way to transact. You have a piece of paper the government backs and trade it for an item or service. This transaction is fast, efficient, and mostly anonymous, as only you and your counterpart know about it.

However, the world has changed profoundly in the 21st century. Many transactions are now online, where fiat money is impossible. It leads the users to cumbersome methods where privacy is also eliminated, such as bank transfers, credit cards, or e-wallets.

As it happens with other disruptive technologies, Bitcoin can make a profound impact on consumer habits because of its anonymous nature. Casinos have taken on this technology as well. Now, you can easily find Bitcoin live roulette, blackjack and other game varieties in crypto casinos. 

Freedom or Debauchery?

Because you only need a crypto wallet address to transact, all other information can remain private. This is both revered and feared. Some claim it allows for all kinds of illegal activities, making it unsafe. 

Others claim it’s the same as any non-electronic payment method in how safe it is and even more. Because Bitcoin (BTC) isn’t backed by any government, it’s not subject to regulations and the destiny of such a government.

This makes it the quintessential “liberty” asset since no single participant controls it. For example, a hostile government can confiscate the bank accounts of dissidents or anyone who disagrees with current policies or impositions. 

There’s no such issue with Bitcoin. To validate a transaction, it needs to be corroborated by 51% of the network, which is a vast number of participants. No actor, government or otherwise, can effectively control such a high percentage of an atomized network.

On the other hand, CBDCs1)CBDC = Central Bank Digital Currency are also making waves. This is the governmental response to cryptocurrencies. Using similar technology, they are the opposite: centralized instead of decentralized. It means that the world’s central banks control it. 

The future will undoubtedly pit these two ideologies against each other. Whatever the outcome, society will be forever changed as a result.

Globally Available

When you travel abroad, you probably need the services of currency exchanges. They charge a fee to trade your currency for the target one. If you travel a lot, this is cumbersome and costly.

If cryptocurrencies gain massive adoption, the world will be boundless. You can get paid in BTC back home and use it abroad without hassles. 

The biggest current obstacle to this scenario is the adoption rate. Not everyone is on board with crypto assets; many deem it speculative. Also, there are talks about regulating Bitcoin worldwide, which might impose restrictions.

A Digital Revolution

The facts above merely touch the surface of the matter. Bitcoin and other cryptocurrencies are part of a societal revolution, changing how people think about ownership.

You get a copy when you buy a song online or any intangibles. If you buy Bitcoin, you get a unique token. This enables digital assets with a certificate of authenticity, of which NFTs2)Non-Fungible Tokens (NFT) are assets that have been tokenized via a blockchain. are the most well-known example.

There’s a battle between “using” services and “owning” them in our digital world. Cryptos empower gaining ownership of things, whereas most online platforms and services let users rent digital services. 

Summing up, Bitcoin is a crucial participant in a broader, ideological confrontation where only the future knows what concepts will prevail.

IMAGE CREDIT: Unsplash.com

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Footnotes

Footnotes
1CBDC = Central Bank Digital Currency
2Non-Fungible Tokens (NFT) are assets that have been tokenized via a blockchain.

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