Rise Of Bitcoin: Not Until Merchant Adoption
Simple users and investors like Bitcoin since it is out of reach of a standard system. Bitcoin as well as other similar cryptocurrencies are decentralized assets that are controlled not by one individual or government etc., it is controlled by all users of a blockchain.
Not to mention that cryptocurrency won’t be devalued like any other currency might be. Since there is only a certain number of bitcoins which means that no one can create more bitcoins, so it won’t drop in value drastically.
These are only some of those reasons why investing in Bitcoin or other cryptocurrencies is preferred by so many people throughout the world. But as for becoming a true rival of a traditional monetary system, do Bitcoin or other cryptocurrencies have this potential? Yes, they do have the potential, but it’s not as simple as people might hope.
The Potential Of Bitcoin
Yes, cryptocurrency does not need any third parties like banks or the governments. It can’t be controlled by centralized system. It can allow you to buy some goods and services over the internet. But to become a second monetary system it needs something better or different.
As most analytics mention, if you want to buy something, you can use Bitcoin. But there is a “but”. To purchase something in a regular shop or in an online store where you can’t use Bitcoins, you have to use an exchange platform like BTCBIT.NET, trade your crypto coins for dollars, and then you can purchase anything you want.
It is useful to use such exchange platforms as BTCBIT.NET, but that’s not the point. If Bitcoin or any other cryptocurrency that is based on a blockchain technology wants to become a powerful monetary system with a potential to be used by all the people who want to use coins, it needs to be adopted by merchants. Users don’t want to seek other options where they need to exchange their BTC to USD.
But it doesn’t mean that the fact that some merchants still didn’t adopt Bitcoin as a payment option, it doesn’t mean that it has no potential. Merchants analyze what are the needs of their customers and offer the most useful payment options to attract even more purchasers. You can even see how some of the companies are trying to attract customers by allowing some discounts if they use Bitcoin as a payment option.
Why Bitcoin Might Become Most Used Currency
Bitcoin definitely has the potential to become a cryptocurrency that will be used more than any other currency. The moment when we will be able to do with Bitcoin something real without exchanging it, that will change the rules. It will be a true game-changer and might be a great advantage for cryptocurrency overall.
Another good sign for cryptocurrency and for the Bitcoin in particular is that it is surprisingly resilient to various negative situations. Recent crash of markets in March that was called a Black Thursday has lead to a situation where Bitcoin was nearly cut in half in value.
But what can you see now? Bitcoin and other crypto coins has nearly recovered from the crash. Moreover, people could use Bitcoin to purchase different products and services during the coronavirus outbreak. In fact, the purchases with crypto coins didn’t even drop in rate.
For example, in most countries people couldn’t purchase some products or services, so the purchasing rate significantly dropped. While the purchases of services and goods with the cryptocurrency didn’t even change. People were still buying at the same rate, if not with a higher rate.
But there is one thing that all specialists agree upon - Bitcoin or alt crypto coins can’t completely replace fiat money. Crypto coins don’t have this capacity at this point, nor do they have an infrastructure to do so. But it doesn’t mean that it won’t change in the future, especially considering that people are willing to accept crypto coins as a way to pay for goods and services.
If people are ready to accept this fact, then the merchants will be willing to offer payments that are popular among their customers. Plus, cryptocurrencies are changing for the better. They are improving and progressing, offering different benefits for all the users. They offer privacy and at least some level of anonymity even though you can see what are the changes done to the blockchain.
Bitcoin definitely has a potential if not to replace fiat money, then to become one of the most used currency in the world. It might not happen in the nearest future, but it could happen when it will become a way to pay for some regular things without even needing to exchange BTC to fiat money.