The much awaited Bitcoin bubble burst looks like it just happened, with the current fall in prices of Bitcoin.However, what implications does this have on crypto-currencies in general.Bitcoin has become more of a currency than it was in the past.Before the fall Bitcoin had become more of a lottery , with everyone trying there luck to make as much money as possible from Bitcoin.The fact that people where buying Bitcoin to make money disqualifies bitcoin from being a currency.It turns Bitcoin into an asset, just like diamond which can be exchanged for money.That is not why Bitcoin was invented. Satoshi wanted the baby to grow big enough to replace paper currency not to make those privileged to earn it wealthy.This fall has streamlined bitcoin to attain an important characteristic of currency:Divisibility.
Currency has to be easily divisible into smaller units.A feature which Bitcoin lacked with its sky-rocketed prices.Its current price as at 2/6/2018 is 1 Bitcoin = 6339.99 US Dollars.This is not very low, but is a bit divisible compared to Bitcoin’s all time high which had one using a calculator to convert a dollar into 0.0000 infinity Bitcoins.That was not convenient for average-cost transactions which make a huge percentage of all monetary transactions in a fiscal year globally.Further fall in the prices can only mean well for Bitcoin as a currency.It’s also a total nightmare to opportunists trying to turn crypto-currency into an asset disregarding the currency in crypto.
Future of Bitcoin
Personally I anticipate closure of mining of crypto-currencies(with time) and elimination of some features of crypto-currency.Don’t get me wrong I’m for the idea of digital currency and support application of the same paradigms in other ares like loyalty-points based on crypto-idea etc.If not so then the whole idea has to be re-visited and modified to fill the currency gaps in crypto-currency.As it stands now Crypto-Currency doesn’t have what it takes to replace money yet, but with few modifications it certainly will in the future.
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