Bitcoin is a modern digital currency without central control or regulatory authority. Since it’s a digital entity, its availability is global. Anyone with a computer, tablet, smartphone, and internet access can join the Bitcoin network. A peer-to-peer network validates and authenticates Bitcoin transactions via the Bitcoin mining process. In return, the network rewards Bitcoin miners with new tokens. The Bitcoin blockchain records and encrypts transaction details on a shared public ledger using cryptography.
This virtual currency has gained immense popularity over the past 12 years of its existence. What’s more, some merchants now accept Bitcoin payments. People and enterprises worldwide trade this digital currency on platforms like the Bitcoin System. Bitcoin is also a legal tender in nations like El Salvador.
However, some nations, like China, have banned all Bitcoin mining and trading activities. Also, some countries implement strict Bitcoin trading and tax laws. What’s more, some individuals associate Bitcoin with illegal activities like money laundering and funding terrorism. Consequently, some individuals think Bitcoin is doomed to fail. Here are reasons to believe otherwise.
Bitcoin Becoming a Legal Tender
While Bitcoin has faced and overcome many challenges before, the move by El Salvador to make Bitcoin a legal tender on 7th September 2021 is a great stride towards the cryptocurrency’s success. This country gifted all citizens Bitcoin worth $30 to promote crypto wallet use.
Countries like Panama are also considering a similar move while allowing their citizens to trade and invest in this cryptocurrency. Such decisions mean Bitcoin might soon become a mainstream currency that people could use alongside fiat money.
Massive Ground Adoption
Bitcoin is receiving massive adoption by consumers, merchants, and organizations. Perhaps, this adoption will eventually force all governments to embrace Bitcoin in a new paradigm. In October 2021, Wall Street embraced this cryptocurrency by welcoming Bitcoin Futures ETF.
Banks like The ProShares and JPMorgan have shown considerable interest in EFT. Thus, Bitcoin Futures ETF could be the fastest ETF to hit the $1B in assets.
Illegal Activity Accusations are Unfounded
There’s no specific evidence to prove that criminals prefer Bitcoin for their malicious activities. Those arguing that Bitcoin facilitates scams and frauds should consider other innovations that criminals have misappropriated for malicious activities.
For instance, chemistry as an innovation led to the development of life-changing drugs. However, criminals have also used it to manufacture chemical weapons. Many innovations have modernized the world while fueling the armaments sector. Fraud and cyber-crimes have flourished due to the internet. However, the world can’t legislate against such innovation because a few individuals have misappropriated them.
Stabilizing Bitcoin Price
There’s no doubt that Bitcoin’s price has remained volatile for quite some time. Many people have become overnight multimillionaires from speculating about Bitcoin price. However, experts predict that Bitcoin’s price will stabilize as people peg more services and goods to this virtual currency, like the dollar and sterling pound.
Power Consumption Accusations Are Far-Fetched
Some environmentalists are against Bitcoin, saying its mining consumes a lot of energy. But these are alarmist predictions that aim to tarnish its name. While Bitcoin mining consumes electricity, printing fiat money also consumes power. Some traditional coins rely on zinc mining, which significantly affects the environment.
For this reason, countries like Canada have ditched coins with the lowest value due to the high production cost. What’s more, activities like watching Netflix and sending emails are prone to similar arguments. Therefore, environmentalists shouldn’t single out Bitcoin as the unique offender.
Final Thoughts
Bitcoin has numerous benefits that may increase its adoption rate. This cryptocurrency offers greater security, transparency, speed, and efficiency. Therefore, more people and enterprises might eventually prefer it over traditional currencies.
