Despite recent fluctuation in it’s value and global macroeconomic uncertainty, 2020 is a big year for Bitcoin.
Although a large number of businesses and private individuals are still apprehensive about adopting cryptocurrencies, the number of businesses dependent on block chain and Bitcoin users is steadily rising — having more than quadrupled over the past three years.
There are several very good reasons why it’s right to assume Bitcoin is not only here to stay but about to positively flourish.
Bitcoin, due to blockchain technology is decentralized. This means that there is no central authority like a bank or government in charge of the currency. Decentralization provides a higher level of security for the currency. The fact that Bitcoin is not centralized makes it less vulnerable to security threats and more resilient and efficient.
All you need to become a bitcoin user is a smartphone with an internet connection. Since no physical banking institutions are involved, cryptocurrencies like Bitcoin have an advantage, particularly in developing countries where traditional banking is not good enough or underdeveloped. Since it’s easier to set up an internet connection than it is to create a physical banking network, Bitcoin is likely the currency of the future for many areas of the world.
Accessibility and ease of use
Although Bitcoin may have an underlying complex technology backing it up, its still very easy to use with its full options available to everyone.
Considering the what’s involved in making international transfer through traditional means Factors like time, configuration issues and fees involved portrays Bitcoin a better option as you can make transfers worldwide without third party fees. Its also instant encouraging businesses and services provided by companies abroad.
Let’s consider basic economics. Part of the design of Bitcoin involves a limit coin cap set around around 21 million. This was a conscious decision on the part of Satoshi Nakamoto, the entity behind the invention and deployment of Bitcoin.
This limit effectively makes Bitcoin inflation-resistant, giving it a major advantage over traditional currencies, all of which are subject to losing value at certain times. The anti-inflationary measures mean that Bitcoin will always retain its value, and also make it a viable alternative to traditional currencies in countries where hyperinflation is rampant, such as Venezuela.
Using Bitcoin including its implementation in everyday businesses doesn’t require any specific alterations or complex systems to be put into place. The cryptocurrency’s accompanying apps and software are compatible with existing technology smartphones and computers meaning that no additional investment is necessary to start using Bitcoin.
Potential for increased investing
Bitcoin is valued not only as a currency but also as an investment unlike gold or other precious metals. Since Bitcoin appeared on the market, investors have expressed widely different opinions on the cryptocurrency as a potential investment. Some found it to be an ideal opportunity, many believed it too short-lived and/or volatile, and most knew too little about it to have an opinion.
A 2019 survey by SmartAsset is highly illuminating on the subject. A sizeable portion of investors 36 % stated that they would consider an investment in Bitcoin. Crucially, though, of the remaining 64 % those who wouldn’t consider investing in Bitcoin a huge 89 % said their lack of interest stems from having insufficient knowledge about cryptocurrencies.
It’s a logical prediction, therefore, that as the use of Bitcoin as a currency becomes more widespread and understanding of the nature of cryptocurrency more common, investors will be increasingly comfortable with considering it a worthy investment over the coming years.
Lack of superior competition
Fiat currencies have failed because humans can’t help but print more money. There has never been a time where a deflationary alternative built on code and mathematics is needed. Bitcoin has a compelling use-case as a store of value, particularly in countries experiencing hyperinflation such as Iran, Turkey and Venezuela. Bitcoin also has a compelling use case in remittances, and greater adoption by financial institutions will help provide these services at more competitive rates.
One thing is certain: Bitcoin and digital currencies are here to stay.