Bitcoin is a digital currency that removes the need for transaction intermediaries by using blockchain technology which enables all participants to jointly manage the distribution of bitcoin through a distributed ledger. Also, since the supply of bitcoin is fixed at 21,000,000, prices cannot be manipulated through increasing the supply or “money printing”.
Bitcoin: A Revolution to Current Monetary Systems, Big Government, and Central Authorities
Those who opposed the policy of quantitative easing under which central banks abuse power have found a new recipe to revolutionize the monetary system, arguing that decentralized bitcoin is the best way to prevent power abuse.
Between 2011 and 2018, the price of gold has declined overall, while bitcoin soared in price and even surpassed the price of gold.
From this perspective, the emergence of bitcoin, like gold, has become a negative indicator of the legal coin system. Markets no longer trust political forces and central bank decisions, and anarchists argue that market support for bitcoin stems from distrust of the state.
Bitcoin: A Technology to Improve International Finance and Commerce
According to a recent study by Infiniti Research, Bitcoin is an effective alternative currency in economically unstable countries. The report looked at four cryptocurrencies, including Bitcoin, Ethereum, Monero and Dash, and highlighted the strengths of each.
While cryptocurrencies are not yet widely accepted, they have made cross-border transactions easier, with implications for international finance. Therefore, through the adoption of blockchain technology, the cost of foreign exchange and money remittance will be significantly reduced.
Bitcoin: The Next Great Bubble?
Due to bitcoin’s price volatility, prices have risen and fallen many times over the past decade since inception, and the media has reported relentlessly on the inevitable “death” of bitcoin. According to 99 bitcoins, the cryptocurrency has been pronounced “dead” for a total of 336 times by public media sources since 2010. For example, Bank of America (BoA) called Bitcoin the “biggest bubble ever” by drawing comparisons between bitcoin and some of the world’s greatest past bubbles:
· Tulip mania in the Netherlands
· Mississippi bubble in France
· south sea bubble in Britain
· Gold
· The 1929 stock market crash
Bitcoin: Most Prevalent Technological Innovation Since the Internet
On the other hand, bitcoin supporters remind the general public that throughout history, every disruptive innovation and transformative technology has been challenged by skeptics, including:
· The invention of electricity
· The construction of railroads
· The Internet itself through the 1990s
As Carlota Perez, an economist, points out, suspicion and bubbles are merely the by-products of disruptive innovation.
Regardless how you currently view Bitcoin, one important fact remains: it has dominated social media and mainstream media outlets for the last several years and shows no sign of stopping. Bitcoin is a once-in-a-lifetime technology that everyone should follow and study closely since the public’s perception can change very rapidly. To put this into perspective, 20 years ago, everyone thought the internet was only used for distribution of drugs and pornography; nowadays, everyone uses the internet and it has become the backbone of our globalized economy.
