Once thought to be an outrageous idea, Bitcoin is still going strong 10 years since its inception. The problem with mass adoption was that there simply weren’t enough people who were concerned about privacy or decentralization. Now there are. A survey conducted on behalf of Bitcoin capital show that one in four millennials referred Bitcoin to stocks and overwhelming 42% of millennials are completely aware of Bitcoin and cryptocurrency.
Coupled with the global distrust in fiat currencies, the tide may soon be turning for Bitcoin. Countries have become more distrusting of one another and in particular of USD and the potential for manipulation.
There are a growing number of countries like China Malaysia Turkey and Russia that may want to switch to gold-backed currencies to reduce their dependence on the dollar.
And Bitcoin is even a better alternative than a gold backed currency. This is because gold has some limitations which doesn’t fit with the digital age. Gold is very expensive to store, handle and protect. Since BTC is issued at a consistent rate, is a digital currency and the total supply is limited, it is possible that countries may soon move to Bitcoin.
There is also a growing distrust of banks among people who are completely fed up with their rigid regulations and money-minting schemes. It may not be possible to completely forgo the bank just yet. But in a country like China where all payments are essentially made through QR codes on WeChat it could be something that we see really soon.
According to a report from HBUS, the number of crypto currency owners has doubled since 2018.
However, there are still a lot of things that Bitcoin must address before it can be used as a currency all over the world.
The energy used in mining
The proof of work algorithm consumes a lot of computational power and uses as much carbon dioxide as 1 million transatlantic flights. Because of this China decided to ban Bitcoin mining in the country.
The argument against this would be the traditional banking is about three times worse. Mining keeps Bitcoin secure and prevents the wallet from being hacked.
People don’t trust Bitcoin enough because its volatile
Media and laymen have often termed Bitcoin as worthless and pronounced its death more than 350 times in the last 10 years. However, the truth is that all virgin asset classes are subject to such sudden changes and should be given the benefit of the doubt. For instance, if you wanted to make a DCR BTC exchange, it is highly recommended that you compare exchange rates online or use an aggregator that does that for you. Several exchange platforms have trading bots that find you the best rates.
There have been many hacks
There have been plenty of cryptocurrency exchange platforms that have been hacked. Mt. Gox, Bitstamp, Bitfinex immediately come to mind. However, the Bitcoin blockchain has never been hacked. It is always important to find a cryptocurrency exchange that is reliable and trustworthy and secure. Above all, it should offer great exchange rates. For instance, if you want Waves BTC exchange or ZEC BTC exchange, you should not have to pay hefty trading fees.
It is perhaps to early to be making any conclusions but one thing is clear. Countries and citizens are finally looking for alternatives to the binding fiat currencies and Bitcoin makes for a great alternative.