The concept of cryptocurrencies has not introduced many years ago. But it still is getting the popularity. In fact, it reached a point where we can say that it will replace the traditional fiat currency and be the future of it. And, there are also potential facts to back up the prediction. Visit at: https://stocksprofit.org/
The cryptocurrencies especially bitcoin is around the news. In fact, it is the dominating one. In fact, the financial news these days features a major portion of it with the cryptos. All of these is not vague. It’s potential is catching everyone’s eyes.
However, the heights it has been achieving lately may seem huge but safe to say is only the beginning. There’s more to come in the future. Companies that have being supporting and promoting bitcoin will sure have some extra facilities in the future when everything will grow about bitcoin.
The supply of bitcoins
The fiat currency of any country can be printed and circulated in the market any point of time. There is no limit to that. However, when it comes to the bitcoin, the supply is limited. As per the research reports, there are approximately 21 million of Bitcoin ever. Also, the mining process that is going on continuously is becoming slow with rewards frequency. Some financial experts predict that the very last piece of Bitcoin is most likely to get mined on May, 2140. The calculation is based on the ‘halving’.
Comparison between money and cryptocurrency
Money plays a prominent role in the economy. In fact, the most important role. There are some roles which is played by the traditional money. Some of the major differences are as follows-
Medium of exchange: Prior the fiat currency came into the scenario; people used the barter system to get what they need. It was the exchange system between two individuals and what they need. Suppose the fruit seller exchanged his fruits for meat. There are plenty of inconveniences and limitations to the system. Can you imagine how a proper exchange takes place between two completely different things. Here comes a common parameter. Money was invented like that.
In case of cryptos, there are no countries where it can be forced to use it being a legal tender. Except from El Salvador where it has been announced to be legalized as the legal tender in 2021. Also, there are some companies, who are facilitating the payment options by including crypto payments. One such company is Elon Musk’s Tesla Inc that produces electronic vehicles.
Value unit: Another role of money is determining the price of everything. Every single tradeable digital asset has its particular market price value in terms of money. This is what the problem with cryptocurrency for this. The price paying with crypto is quite hard. Suppose you pay for something with your stored cryptocurrency today. And the very next day the price of cryptocurrency rises. Imagine how much money you have lost. You could have gotten the extra money which you have lost by then. So, the volatility is one factor which is creating the problems.
However, the scenario would be very different in the future. Some market research reports and predictions state that at times, the market price of cryptocurrencies will finally be able to reach a point of stability. It will happen as a result of more people entering crypto market.
Value storage: Many of the time what we do is we store the traditional money for years to get good return in the future. It is the same case with crypto. As the experts predicts, the market will definitely witness more and more success. And more the market grows, the more increase the reward options.
Final Words
Although the currency is new and facing so many challenges, there are many platforms that accepting the bitcoin as a secured payment option. This will give a boost to the cryptos. At the end of the day, over all, every financial investor should well know the fact that the market of cryptocurrency keeps changing from time to time; it constantly keeps evolving. So, it is not hard to assume that the current scenario will change in the future as well. And if you do not want to miss out, start investing in a secure platform like Bitcoin Era.