Is Bitcoin Being a Threat to This Monetary World?

Yash Sharma, CEO, Quick ForexBitcoin has emerged as the new age technological advancement when it comes to monetory transactions. As defined by Wikipedia, bitcoin is referred to as a worldwide crypto currency and digital payment system called the first decentralized digital currency, as the system works without a central repository or single administrator. It is called crypto currency because it uses military-grade cryptography to secure transactions. Bitcoin payment processing takes place through a private network of computer systems.

The idea first originated with John Maynard Keynes in 1940, who proposed an international currency as a unit of account in order to combat trade imbalance. A stateless currency removes the role a governmental organization plays in managing and accounting for economic values. The role of governments and banks in controlling money is removed and a simplified transaction occurs between individuals and bigger organizations. Therefore, the emergence of bitcoin is convenient and with digitalization as a world agenda, the entire process is taken more seriously.

There is a constant debate across the globe regarding the credibility and efficiency of a digital money system. There have been large-scale investments and has opened an entire door of opportunities when it comes to marketing and business dealings in their forefront. The question of the hour however is, whether or not bitcoin being a treat to the traditional and fluid approach to money and its country wise policies. When it comes to the bigger picture scenario, with everything congregating to a setup where dealings are digitalized, money in a binary format without its actual presence in physical form is not a utopian idea.

The whole act of a ‘stateless’ currency is nothing but easy to handle to a world interaction with the intention of trading priority. Everything when it comes to economy exchange would get standardized. And hence, encourage smooth economic exchange programs between countries or continents. The entire set up of trading becomes functional without technical hassles. The best part of the exchange policy is that it just requires a computer or a smartphone with identity and money being protected. No personal information is disclosed. Everything is anonymous. Even
while traveling, since there is no fear of the, the entire process becomes simpler and more manageable.

However, when we look at the details and minute setups, there are many drawbacks to crypto currency. Crypto currency at present is not functional; regulations are not very strict and it also lacks a major legal foundation. Even China withdrew from bitcoin trading in recent times and that would have a negative impact on the crypto currency because nearly 10 percent of trading activity is invested on China. The need of the hour is an additional regulation for the setup to open up a vast arena for investments or an encouragement to this activity. Most question the credibility and most even deem it as a fraud setup. It might be a legitimate currency method, but with its lack of regulatory programs, it sure isn't a strong gamer changer at present.

The emergence of bitcoin is convenient, and with digitalization as a world agenda, the entire process is now taken more seriously

Today, many multinational companies have jumped to the acceptance of bitcoin and though they are more tech oriented, more and more industries and organizations are further joining the bandwagon. Most countries are still not in terms with an acceptance of such an idea because of fraud and money laundering threats and encouraging criminal offences within their country. This is a huge challenge to combat. So before investments, there has to be stronger regulations and international law making bodies to keep a check. There are security dilemmas underway and various cyber battles over bitcoin black markets and the world is now debating over the fear inspiring virtual currency story examples. The fear is most among the consumers and people in business backgrounds. Bitcoin having no governmental affiliation makes it a strict peer-to-peer technology. There's also no blame game that can take place if the setup crumbles down.

So currently, bitcoin may not be a threat but over the years, with its proper implementations and across the globe exercises, it could take up the traditional setup of money exchange systems. Bitcoin is effectively dead because major governments across the globe are still against it. There are so many attractive features to it as it is faster, anonymous, easier and more convenient, lack of governmental interference, no banking regulations. There are no track, control or tax currency movements. The financial enforcements would turn on self-reporting. The key feature is, many different entities verify transactions. Therefore, there may be advantages to using a bitcoin in transactions, but it is not actually a currency. It is unstable. Yes there are no arbitrators or middlemen, but there is also the absence of a third party protector.

There's a sensation of mistrust following through bitcoin but it does in truth assist developing nations as it is used like Fiat currency because they don't have finances to keep people stable. It is an ideal platform for migrant workers who send their earnings back home. In one situation it might worrisome, as you never know potential investments might fall. But if it does explode, there is a lot of money in returns. With bitcoin, we can see an entire Revolution of money moving to a different direction and traditional banking might be a thing of the past. It will probably take long years to take a complete switch because the entire process would be complicated, time consuming and the entire threat of technology going kaput. It is impossible to predict if bitcoin would be a good investment, but currently it is not a massive threat.