Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Who Knows What Will Black Gold Do in Coming Week? - 18th Dec 17
Gold’s Shooting Star and Its Implications - 18th Dec 17
UK Used Car Christmas From Dealers Buying Discount Sales Bargains - 18th Dec 17
How To Play The 2018 Cannabis Boom - 18th Dec 17
Should You Consider Investing/ Buying Gold or Bitcoin? - 18th Dec 17
Gold EFPs: Absolute Proof that the Paper Gold Price is a Fraud - 18th Dec 17
Gold – Technical Obfuscation, Fundamentals, Predictions - 18th Dec 17
Stock Market Final Thrust is Likely - 17th Dec 17
Never Mind Tea Leaves, Here’s a Strong Signal from the Economic Dashboard - 17th Dec 17
As Bitcoin Breaks All-Time Highs Near $18,000 Its Future Has Never Been So Uncertain - 17th Dec 17
Best Time / Month to Buy a Used Car From a UK Dealer - 16th Dec 17
Relief Rally in Gold Mining Stocks - 16th Dec 17
Amid Bad Fundamentals, Gold Sector Rally May Have Begun - 16th Dec 17
Gold Bullish on US Fed Interest Rate Hike - 16th Dec 17
The LORAX Explains What Happened to Sheffield's Street Trees 2017 - 16th Dec 17
Bitcoin Trading Alert: Bitcoin Pauses – Will Appreciation Follow? - 16th Dec 17
SanDisk Ultra 128gb 100mbs Micro SD Card for Smartphone's Speed Test - 15th Dec 17
Inflation is Spiking Globally… Bond Bubble Bursts in 3… 2… - 15th Dec 17
Sheffield's 'Real' LORAX Defending the Trees From the Labour City Council Patrol Units - 15th Dec 17
Stock Market Decline Signals are Near - 15th Dec 17
Santa Is Putting Christmas On The Blockchain And Saving Billions - 14th Dec 17
The Unprotected, the Protected, the Vulnerably Protected Classes—Which Are You? - 14th Dec 17
Gold’s Upside Target - 14th Dec 17
Year-end US Interest Rate Hike Again Proves To Be Launchpad For Gold Price - 14th Dec 17
2 Charts That Might Define the Fed’s Jerome Powell Era - 13th Dec 17
UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - 13th Dec 17
Stock Market Elliott Wave Forecasts - Is the World coming to the end? - 13th Dec 17
A Method Traders Can Use to Confirm an Elliott Wave Count - 13th Dec 17
Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - 13th Dec 17
A Former Wall Street Veteran: Good Traders Are Born, Not Trained - 12th Dec 17
Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts to Continue? - 12th Dec 17
Masters of Economic and Political Illusion – in Taxes, Debt, Government, and Markets - 12th Dec 17
Approved Used Land Rover Main Dealer Real Customer Buying Guide - Hunters, Chester - 12th Dec 17
Gold Price 100% Bullish Signal - 12th Dec 17
Epic Stock Market & Fixed Income Bubble Will Not End Well - 12th Dec 17
Bitcoin can be stolen. Although Can’t be hacked - 11th Dec 17
Have Stocks Reached A Permanently Rigged Plateau? - 11th Dec 17
Trying To Beat The System Is A Fatally Flawed Investment Strategy - 11th Dec 17
Is This The Beginning Of The Next Silver Rush? - 11th Dec 17
The Dow Gold Ratio - 11th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

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

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

By: Boris_Dzhingarov

Currencies

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.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife