It is extremely likely that Bitcoin will soon replace the Federal Reserve in the USA and other such developed countries. In this article we will discuss the probability and benefits of such a scenario.
Firstly one needs to put into consideration the progress of the reformation that Bitcoin brought about, via means of estimation of volume transactions by time and comparison to the value of the currency in the contemporary time period.
For example, in a 2013 survey, Francois Velde of the Federal Bank Reserve of Chicago had estimated that the average volume of per-minute transaction of bitcoin accredited to four-tenths of 1 % average dollar transactions in the USA per minute.
Apart from all this, another way to know that Bitcoin is more qualitatively and quantitatively important than traditional money is to literally look at the standard definition of money given by the economists: an entity that serves and measures the unit of account and store of value, and also acts as a medium of exchange. And bitcoin does just that, and in more than one case does it better than physical currency.
First off, the traditional currency is tangible and hence cannot serve the purpose of a unit of account, which is intangible; it is rather a medium of the account which serves the unit. Also, the anonymity factor attached to bitcoin provides a sense of security to the novice instructor who might fear that their identity might get robbed or compromized, of course, this doesn’t mean there are no ways of tracing the owner of a bitcoin in case of mal intentions, provided there is enough security against them.
What are the probabilities of Bitcoin becoming a major medium of monetization?
As it is already apparent, Bitcoin is soon to become one major or even in all probability the main medium of exchange globally. It is important to overview some of its main advantages to understand this.
Firstly, the reduced transaction expenses that Bitcoin has the capability to bring about cannot be denied. Millions of low-income families every day go into hard-working jobs in foreign nations away from their families to make money to sustain them and everyday payment companies and banks extract an immense amount of fees up to 10% to send back this money. Whereas, if someone switches to Bitcoin, there are little to no fees involved and this could help in increasing the quality of lives of the migrant workers and their families by manifold.
Also, Bitcoin has the potential to integrate a large number of people into the central economic system which is important, because with the current system the economic regulatory powers lie in the hands of only a few powerful sectors who can bend it to their will.
Another very important advantage of Bitcoin is its indulgence in micropayments, which can never be feasible to the banking systems. Bitcoin has infinite divisibility so absolutely any arbitrarily tiny amount of money – even a thousandth of a penny can be sent across the world absolutely free of cost or with very little charges.Visit here for more information phreesite.com
Content monetization, for example, they struggle because they either need to charge the entire consumption covering all content or nothing. But Bitcoin makes it possible for them to charge meager amounts of money in terms of per section, per article, per hour, per video play, per news alert, or per access to archive. This will encourage more and more people to sign up for these media platforms and make them more accessible to the masses.
In this very context, another useful property of bitcoin comes to mind which is the use of micropayments to fight spam. How do you ask? Well, future social networking sites and email applications can refuse to accept incoming messages unless they are sent with a tiny amount of Bitcoin, which is meager enough to not matter to the sender but can cause a reason of concern to the spammer who spends their day sending millions of such spam messages free of costs without the fear of getting bankrupt.
This added fear of bankruptcy could potentially reduce or stop spamming. These types of uses will attract the eyes of economists who play a great role in revolutionizing money. So Bitcoin, as we have seen, could be and should be the future of our currency.