Bitcoin has been on the news for the past 3 years now. On one side while we have got a set of billionaires who believe that it is absolutely BS. — Warren Buffett
On the other side, we have got a set of billionaires who think that Bitcoin is the future. — Jack Dorsey
While on one side we’ve got people who believe that Bitcoin is a threat to the world economy. On the other side, we’ve got people who believe that Bitcoin will be the very foundation of the world economy in the future.
And I know for a fact that you don’t care about these things. You only care about one thing and that is Millionaire in 25 days.😁
Anyways, so, for the past few months, I’ve been doing some intense research to get a sense of this whole Bitcoin hype. And today I’m about to make a very bold and calculative prediction as to why I believe Bitcoin is the future. And hopefully, by using my calculations you’ll be able to open up gateways of opportunity for yourself.
So according to me, there are reasons why Bitcoin is the future. The most fundamental reason of all has got to do with exactly is the meaning of a currency.
Now, people, on the outside if you ask somebody what exactly is the meaning of a currency. They would tell you that it is a standard commodity that can be traded and recognised by some national or international bodies. But the truth is even if no government or official body recognises a currency it could still be extremely valuable. At the same time, despite all the government recognition in the world still, a currency could be useless.
For example, let’s say tomorrow you go to buy coconut water, all right? And you have got 10 crore rupees in your Google Pay account. If the person selling coconut water says that he will not accept Google Pay despite being a millionaire, you cannot even buy something as small as coconut water.
So, even with all the recognition that is there for digital wallets and the rupee as a currency. Your money is worthless. At the same time, I don’t know how many of you know this but then in prisons in America, Ramen noodles are used as a currency which means if you’re a prisoner you can exchange Ramen noodles and get whatever you want.
In fact, in a 2016 report, it was stated that the value of Ramen noodles inside the prison goes as much as 10 times its MRP, which means if you’ve got a packet of Ramen noodles that costs ₹60, in prison, you could exchange that very same packet to buy ₹600 worth of commodities. So this is what we call informal currency. Now if you see whom the hell recognises Ramen noodles the prison does not recognise Ramen noodles let alone the government. Then the question is How the hell has it been operating as a currency for decades then?
Well, that is because a currency, fundamentally, does not necessarily require recognition from some official body. It just requires two things. Number one, it needs enough people who believe in the currency. And number two, it requires a network that can connect all of these believers so that they can carry out a transaction. That’s it. Full stop. If it has believers that cannot get in touch with each other then again the currency is useless.
For example, let’s say you go to a remote village in India tomorrow and if you’ve got, again, 10 crore rupees in your PhonePe and you want to buy a vada pav. You cannot buy vada pav unless you find another guy who accepts PhonePe, you again, cannot carry out a transaction. Therefore, for a currency to operate you only need two things; number one believers and a network to connect these believers.
Now, when it comes to Bitcoin, the most amazing thing about it is that Bitcoin has a lot of believers and not just that these believers also include people like
Elon Musk and Jack Dorsey who in this context are acting as influencers which means what by using their influence they can multiply the number of believers in the market which will eventually get enough believers in the market to turn Bitcoin into a mainstream currency.
A very simple example of the same is the $1.5 billion worth of Bitcoin that was purchased by Tesla. Now, when Tesla publically announced that it has invested $1.5 billion into Bitcoin and the fact that they now plan to accept Bitcoin millions of people all across the world started believing in Bitcoin and started investing in Bitcoin. As a result of which the value of Bitcoin shot up. Therefore, when more such companies start using their influence.
Bitcoin will automatically become mainstream. That is my reason why Bitcoin is the future, which is the number of believers in Bitcoin is increasing slowly and steadily and thanks to the Internet, the network to carry out this transaction has always existed.
Bitcoin as a currency and blockchain as a technology has got such huge potential that it is perhaps beyond the imagination of the 99% of the world’s population. If you get an inch closer to understanding its potential by doing some deep research it can give you opportunities that 99% of the world’s population can’t even comprehend.
And that is how I would like to rest my case.
If you learnt something valuable please make sure to comment and to support my work please share.
Thank you so much for reading! I’ll see you soon, bye-bye.😀
Blog Posted by, Vinit Dave, ACCA