What I think about Bitcoin and Gold: Exploring the Currency of Tomorrow

Hello all, today I feel like talking about Bitcoin. You may have heard of it, but are wondering why everyone is so worked up about it.

Well, let me put it down for you in plain English.

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First let’s talk about gold.

That shiny metal people have been crazy about for centuries? Yeah that one.

Gold has always been seen as valuable because it is rare and does not rust or wear away over time. So here is the thing: while gold might be good; it isn’t perfect.

Gold’s supply can change. Indeed, it may be difficult to mine and costly to extract from the earth but there is always a chance that more will be found.

Again, when the price of gold surges upwards, more miners are encouraged to dig for it which can result into high quantities of gold entering the market.

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Let’s now have a discussion about Bitcoin.

Bitcoin is akin to digital gold but better.

Why?

Simply, there can only ever be twenty one million units of Bitcoins in existence; that is all, no more, no less. Therefore, this limited availability makes Bitcoin extremely scarce and it is a good thing when you are talking about something functioning as money.

However, the singularity of bitcoin among other things is why it should be seen as unique. Also decentralized by nature, which means it’s not under any government or central authority control, rather blockchain technology which is basically a simple term for ‘a digital ledger’ that records all transactions made using bitcoins.

This decentralization implies that the bitcoins network cannot be tampered with and thus highly secured.

Another feature of bitcoin which distinguishes it from gold is its divisibility.

Consequently, even if you do not own much of it, being able to divide bitcoins into small fractions known as satoshis means that you can buy items with them.

Portability is another key attribute to take into consideration. While gold is heavy and occupies much space, Bitcoin can be transferred across the globe in just a few seconds. In this case, it becomes a perfect medium of exchange for the modern world which is deeply interconnected through the internet.

So what makes me think Bitcoin’s tomorrow is bright?

One reason being that it resolves numerous challenges that other types of money such as gold and fiat currencies have. It has limited supply, security, divisibility and transferability. Plus, there are no state authorities regulating it; hence politicians or central bankers cannot manipulate it arbitrarily.

But what makes Bitcoin so revolutionary in its approach to money?

By using bitcoin, any internet user can become part of the worldwide economy regardless of his/her residence or income level. Potentially, this move could give power to billions who are currently marginalized from conventional banking systems around the globe.

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Certainly, Bitcoin faces its own problems.
There are still technical obstacles to jump over and many doubters who question whether it will survive in the long term. But for me, I am hopeful about Bitcoin in the future.

As more individuals become aware of its benefits and as more companies begin to accept it as a mode of payment, then it can only increase in worth.

So there you have it. That is why I believe that Bitcoin is money’s next frontier. It cannot be easily found; it is safe, divisible and portable making it a potential savior of billions of people globally.

If all this does not convince you, it never hurts to gather more information about something that has a likelihood to change our world as we know it today!

Posted Using InLeo Alpha