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Is Bitcoin just about its price, or has it got more?

No matter where in the world you are right now, you have been a part of Bitcoin’s journey. Whether as a participant or just one among the audience, we have all seen its price take turns. So, while everyone has been busy speculating the next bear or bull, I have been thinking about how this coin can improve our world in general.

I am able to write down my thoughts with such clarity today because of a decision I made a few years back- to buy Bitcoin. Not for profits, as back then it was not on such a spree as it is today. It was curiosity that led me to buy it. How could anything with absolutely no intrinsic value hold so much worth and challenge the classical monetary system?

The art of monetary policymaking and ‘high powered’ money have always intrigued me. It’s almost unbelievable that after an era of gold and other physical assets, there was an entire economy based on something that did not exist.  Yes, it was ‘mined,’ but not from ores. Computational power and hash algorithms running across a distributed network were generating new units of this currency, instead of the traditional federal or central authorities.

It got me to deliberate if there was a real possibility of a decentralized digital coin becoming a universal currency, with no known borders in its application. How would it affect the play of power among nations and what would its impact be on economic conditions like a recession?

With governments and industry giants starting to pay attention to Bitcoin, the price had to fluctuate based on these opinions. Back in 2013, China began to explore the Bitcoin space actively and so, its price rose. However, the Chinese government was not in support of such a borderless currency. Bitcoin had the power to render capital control incapable of ruling. Of course, with such news, Bitcoin’s price did drop down, but only to rise again. So, I thought, maybe this currency is indeed decentralized, as one of the most powerful governments and dense population failed to have an impact on it. Given such resistance, media popularized 2013 as the year of Bitcoin, with it accepted as a mode of payment and over 12 million wallets to facilitate the same.

Bitcoin’s journey has not been without any hiccups. Hacks, thefts and inefficiencies have plagued its existence and operations. Its price witnessed dramatic drops with each such hit and remained sluggish for quite some time.

After decades of dealing with fiat currencies, which are highly regulated with a verified legal status, mainstream adoption of Bitcoin seemed like a far-fetched dream. Neither did it have a legal status nor was it regulated. With several vendors unable to accept it as payment and banks unable to process Bitcoin transactions, real-world application of Bitcoin appeared to be almost impossible.

Licensing was a grave concern for the Bitcoin community as well. Particularly after the BitLicence regulation in New York, there were just three companies out of the many who were able to receive the licence.  However, all this pushed stakeholders and people like me to find solutions for something as elegant as Bitcoin.

People like me are most of you reading this article, who are affected by government regulations and are often the ones to take on the weight of inflation. Inflation that’s so often caused by political reasons and conflicts, that are driven by corrupt governments. As a citizen of a ‘third world’ country, there’s hardly any scope of not experiencing such deprivation and corruption. Redistribution policies targeted to ease the pains of those below the poverty line, endless subsidies with no real expenditure and a drain of resources- everything leads to new money being printed. Consequently, inflation. A currency that could not be supplied, controlled or interfered with by any government was the most suitable solution.

The solution, however, is not as simple as developing such a currency. We are past that stage now. It’s the regulatory measures, legal status, and financial transformation that can help with the acceptance and use of these digital currencies. Only a complete 360-degree solution and implementation can bring along a paradigm shift in the economic landscape. In such a scenario, resistance from governments and bodies is just the natural thing to expect.  

However, efforts of several people across the globe have come to fruition. One such example is the application in Switzerland for Bitcoin to ‘become a part of the self-regulatory organization for financial intermediaries.’ No matter what takes on the world, which governments enter into disputes or how fatal an economic condition might be, Bitcoin and other cryptocurrencies can provide an escape route. A much more liberal and fairer society. These currencies have emerged as the new power that everyone wants to have, and given the degree of decentralization, everyone can have it. It is for this reason why cryptocurrencies have emerged as one of the drivers of the fourth industrial revolution.

Disclaimer: The opinions expressed in this article do not represent the views of Coinedict or any of its team members. Coinedict is not responsible for the accuracy of any of the information supplied in Sponsored Stories/Press Releases such as this one.

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