Introduction: Will bitcoin be the future currency?
Bitcoin is a very popular cryptocurrency, and many people claim that bitcoin is the future currency and will replace fiat currency. It is difficult to say that it will replace fiat currency because it depends upon some factors. It is difficult to explain because the future is uncertain, and we cannot predict it. So, in this article, we will discuss the facts and see how bitcoin can replace fiat currency, or whether fiat will exist or not in the future. So, without wasting time, let’s take a quick look at the following terms.
Why we use fiat currency: –
Before the launching of fiat currency, we used gold and silver for exchanging goods and services. Before gold and silver, people used to exchange goods and services for goods and services, i.e., if you want wheat, you have to exchange rice or things that you have and do not need for wheat because there was no mode of payment. But the problem was that there were no measurements of goods you exchanged. So, there may be a high value of wheat and a low value of the thing you exchange, and it wasn’t easy to measure the worth.
So, fiat currency like USF, POUNDS, INR, EURO, and many other currencies that we use in our daily life to purchase necessities and is a straightforward mode of payment.
With time, many changes came, and now today’s era is the digital era. Many online payment methods like debit cards, credit cards, net banking, UPI, Google Pay, Phone Pay, PayPal, Paytm, and many other payment methods. Now, most of us use these digital payment methods for every transaction.
We are now at the next level because we use fiat currency but digitally through our mobile phones. Every vendor can accept payments digitally through third-party services like Google pay, Paytm, PhonePay, and bank transfer, and QR codes and UPI ids are the most popular payment method.
I use Google daily for every transaction, but sometimes I need cash to purchase things like vegetables and fruits. And many people do not know how to accept money digitally, and most of these vendors do not have bank accounts because they are street sellers.
So many people are not aware of this digital payment of fiat currency. If they do not know how to use fiat currency digitally, can they use digital bitcoin currency for day-to-day transactions or accept Bitcoin payments? So, it is difficult to predict that bitcoin will be the future currency or not. Let’s take a look at the below terms that can make bitcoin a future currency.
- Technology Awareness: Many people are unaware of the technology and want to use fiat currency because it is a comfortable method. Accepting cash is an accessible mode of payment. If we want to make the future bitcoin currency, we have to broadcast the benefits of bitcoin technology.
- There are limited mobile wallet companies that provide the facility to receive and transfer bitcoins. Every person who uses a smartphone and mobile wallet will help us accept and send bitcoin payments through the QR code and private address. Bitcoin mobile payments are essential to make bitcoin a future currency. You can also check the official site for mobile payments.
- Trust: – Trust is the most significant factor that influences the decision to use something or not. There is some misleading news about bitcoin like bitcoin can be hacked, bitcoin will continue in the future, and so on. But the reality is bitcoin is a decentralized system that means third parties cannot control it. If you want to hack bitcoin, you have to hack all the computers or nodes working behind the network. If everyone trusts bitcoin as the safest payment mode, then bitcoin may be the future currency.
- Location: – There are many areas or locations where people do not have seen technology. They do not know what education is, and in urban cities, many people use bitcoin as a payment method. So here, location matters a lot.
From the above information, we have learned that some factors stop Bitcoin from becoming the future currency. However, I think fiat currency cannot be replaced entirely by bitcoin, and there may be chances if these factors will change.