Bitcoin became a mainstream topic nowadays because of its skyrocketing sudden higher price. Many large financial organizations are investing in bitcoin willingly and gaining large profits large. Even people like Elon Mask on the line.
However, think about it, there is no use of current money, we all are doing our daily transections with a cryptocurrency like bitcoin. Buying, shopping, renting, billing every single exchange are in bitcoin. Is this even possible? Maybe possible or not.
Cryptocurrency like bitcoin is free from all restrictions. Such as our central bank can not handle bitcoin. Central banks of each country are the main backbone controlling the money supply and its price. They apply monetary policies to control money. But in the case of bitcoins, is that possible to apply monetary policies? The supply of bitcoin is controlled by computer code and mathematical code. So, it's quite not possible to apply monetary policies on bitcoin for a particular central bank or government of any country.
Well, according to the theory of economics, when the demand for a particular thing is high, but the supply is low, then its price increases. So, in the case of the present condition of bitcoin, doesn't it mean the supply of bitcoin is low but its demand is higher. For this reason, the present value of bitcoin has been increased sky-high than the previous years.
What I said before that, can bitcoin be our global currency? It's really unpredictable though. People like bitcoins and their demand is increasing insanely nowadays. But the main problem is bitcoin's price is not stable, and the supply chain is hidden can not be controlled. For being a global currency don't you think the currency needs to be stable? A few fluctuations are acceptable but sky-high fluctuations are not acceptable at all.
Think about it, yesterday your friend bought a car paying on bitcoin and you are buying the same car today but paying 10 times higher than your friend paid yesterday for the same car. Will you appreciate this matter? Therefore the price stability always matters.
Therefore, in conclusion, we can say if the price of bitcoin is stable then it's possible to become a global currency. Thanks for reading, it's just my thinking about bitcoin. Comment below and let me know what you thinking too about bitcoin's future as a global currency.
