5 Ways Bitcoin can Improve its Odds of Becoming the Future of Money

Currencies / Bitcoin Nov 15, 2017 - 11:17 AM GMT

In 2013, Forbes' Kashmir Hill tried to live on Bitcoin for a full week and it was a rough experience. She couldn't pay her rent, she was practically living on BTC-bought Sushi, and she had to walk or bike to most places. Now, living on Bitcoin for a week will be a significantly improved experience because many merchants both online and offline now display the "Bitcoin Accepted Here' sign. In fact, CNBC has a video documentary showing an entertaining attempt to live on Bitcoin on 2017

Thankfully, much of the existential fears facing Bitcoin have waned, the cryptocurrency is starting to get interest on Wall Street. Now, governments are no longer worried that Bitcoin will birth Silk Road 3.0; in fact, Bitcoin has been legalized as currency in Japan. Yet, the cryptocurrency is not yet in the clear because it is yet to gain mass-market adoption.

Until a large part of the population start to buy Bitcoin, there will always be the risk that it could become another insanely great technology that flopped because it was somewhat ahead of its times.This piece looks at 5ways Bitcoin could be the future of money and to neutralize some of its existential threats

Beating inflation consistently

One of the ways Bitcoin can solidify its position as the future of money is for its value to continue to outpace inflation for all users. One of the biggest problems ailing fiat currencies such as the USD, Euro and Chinese Yuan is that their value can't seem to keep up with inflation. Governments print out money indiscriminately; thereby, increasing the monetary supply while reducing the inherent value of money. The total supply of Bitcoin that can ever be mined is capped at 21 million BTC; hence, the odds are high that the value of the cryptocurrency will continue to rise as more people start using it as an alternative to fiat.

Facilitating Borderless movement of wealth

The cheapest way to move significant amounts of money from one country to another country is probably to pack them in suitcases, load them up on a plane, and fly the plane from your present location to your destination. Moving huge amounts of money through traditional financial institutions attracts huge fees – fees that could be enough to make a fortune in some economies. Bitcoin makes it easy for people to transfer wealth across borders without paying undue fees and without attracting the attention of governments, regulators, or criminals who will be intent on getting a piece of your wealth.

Powering financial inclusion

The Internet essentially turned the world into a global village in terms of communications. With the Internet, it is easier to communicate with people on other side of the world in real-time with VOIP, social media, and email at an unbelievably cheap cost. However, there's still a huge gap in the global economic landscape. Bitcoin's position as the future of money will be guaranteed if it succeeds in driving financial inclusion for the world's unbanked population.

Crowdfunding

Similar to powering financial inclusion, Bitcoin can be a great tool for helping people create wealth without necessarily getting "approval" from financial regulators. Startups, entrepreneurs, artistes, and people with causes can get financial support through the inherent crowdfunding opportunity that Bitcoin provides. When you need financial support for a cause, all you need is to provide potential supporters with your Bitcoin address or QR code, and you'll be on your way to getting the financial support without forcing people to fill out any boring forms.

Micropayments

One of the main selling points of Bitcoin is that it makes micropayments practical by eliminating the third-party payment providers. Payment providers charge a fee to process transactions but the fees charge usually doesn't make sense for micropayments under $1. With Bitcoin, the pricing of goods and services will become more efficient you won't incur significant costs on transactions that are less than $1.

By Boris Dzhingarov

© 2017 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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