Some things are facts; you cannot eat gold, money, or plastic cards. Well, if anyone does though, those commodities do not possess any nutrient at all. One thing is true though, humans have come to attach some value to such commodities. In essence, gold, currency or cards have no value than what people attach to them. These commodities are just illusions. In this manner, bitcoin is just like every other commodity of value used as a currency or in transactions.
All the commodities mentioned above were not accepted by people without some prompting. In most cases, some regulatory body intervened to help build the trust of persons in such commodities. These bodies set rules guiding transactions using those commodities and set standards for those commodities too. Bitcoin initially had to establish itself and attain a value for itself, but attaining that value was not all that smooth as it faced some setbacks along the way. What path has bitcoin taken and what helped it along these paths? This is a matter of interest.
Bitcoin Price Today
Bitcoin Cash (BCH)
Bitcoin Gold (BTG)
Bitcoin Price Prediction 2018: The US Senate Backs Bitcoin
Any currency or commodity of exchange not backed by the US receives little or no acceptance in the world market. That was the case of bitcoin till 2013 when the Senate decided to deliberate on bitcoin. The government showed its backing of the digital currency by auctioning over 20,000 coins that it seized from drug traders involved in the Silk Road drug trade. This act was viewed as a sort of approval by the government. This move by the government resulted in the value of the cryptocurrency flying through the roof.
In Europe, the coin also received favorable feedback from the office of the Exchequer even going as far as making a purchase of some units of the coins. In Asia, some other countries also accepted it as a means of transaction, notably Japan and South Korea. This governmental backing favored bitcoin.
Bitcoin Forecast: Crypto-Gold
At a time gold was accepted as a standard for defining currency, it was called the gold standard. Bitcoin is also seen as the digital equivalent of gold. It has become a standard for defining the value of other cryptocurrencies. Although bitcoin is quite volatile compared to gold which is relatively stable, there is a belief that if it does stabilize, bitcoin will finally be recognized as the digital gold equivalent.
Some experts have also made statements that lend credence to the fact that bitcoin can serve as the digital gold equivalent. Aswarth Damodaran a professor at a New York University stated that bitcoin can either assume the role of the digital gold standard or become the flop of the digital world.
Cryptocurrency Reserve Currency
In most ICOs, the new cryptocurrencies are valued against bitcoin. So whenever a new coin is to be released, its value is determined by how many units of bitcoin it can purchase. Most bitcoin owners that want to participate in ICOs first convert their dollars to bitcoin and then purchase this new coins using the digital currency. This further increases the value of bitcoin.
Truly bitcoin, for now, offers nothing of value except profits in case its value increases against the dollars. That is quite shallow for a currency that is expected to be used for digital transactions. To be accepted, bitcoin will have to let go of its volatility, actually offer some value and not be some kind of dependent currency based on the dollars.
Bitcoin can do more, and the belief is that it will do more. The revolutionary blockchain technology that it brought on the scene is one that has a lot of benefits for fintech companies if explored. And being the pioneer in the digital currency field it will only be proper for it to happily bear the title ‘bubble’ in these initial stage. Remember the dotcom bubble, the train bubble and so forth, these have become pillars of their various sectors, bitcoin can go on and do the same.
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