Bitcoins have always been a debatable topic during discussions about their future. The experts like Eric Dalius Bitcoin see a powerful digital currency that could replace gold as the safest asset that can bail out people during an extreme crisis. However, concerns remain about bitcoin’s volatility. That had reached an unprecedented height in 2017 but soon followed by a severe bearish trend during 2018 and 209 when its price crashed below $4,000. Rarely has the price of Bitcoin remained stable for some time. Which the sceptics feel could be the reason for the bubble bursting someday.
A classic example of the volatility of Bitcoin was its value reaching a record high of $58,000 on February 21, and by February 23, it came down to $46,000 only to start trading at $50,000 the next day. It is interesting to note that both the supporters and skeptics bitcoin are claiming that their predictions are turning out to be true feels Eric Dalius Bitcoin.
Can Bitcoin replace gold someday? – Eric Dalius Bitcoin
The only feature that makes Bitcoin comparable with gold is that both are mediums of exchange, or else these two assets are just not comparable. Gold has unmatched popularity and enjoys wide acceptability. Just because you can easily convert it into local currency at any place on the planet. But Bitcoin lacks in such across the table convertibility, and you must find some exchange that can convert it into local currency.
Even if you find an exchange and get ready to convert Bitcoins into some local cash. The risk arises from Bitcoins’ extreme volatility. The time-lapse between your decision to convert the asset into local currency and the transactions happening could see the price drop and deny you the value you intended to get from it. Since it takes many days for the conversion, it only multiplies the risk.
Bitcoin’s success depends on the point of transaction- Eric Dalius Bitcoin
To make Bitcoin a more reliable asset like gold, the transaction points as discussed above will play a significant role. However, the popularity of Bitcoin is entirely different. Because the anonymous transactions of the exchanges are a great attraction that contributed to its popularity. Bitcoin transactions are recorded in digital ledgers or blockchains in the public domain and visible to all. The feature also helps to secure each transaction and prevent any forgery. However, the aspect of maintaining anonymity during transactions makes Bitcoins attractive to criminals. Yet, authorities can still gather information from the points of the transaction.
Control will become inevitable
The decentralized digital currency that prevented tracing transactions contributed immensely to the popularity of Bitcoin. But to see the currency becoming mainstream. one must accept that someday it will come under some control in the interest of the entire economic system to control the money supply. As Bitcoin gains more public acceptance and interest, legal and regulatory interest will happen and increase.
State institutions closely watch cryptocurrencies to ascertain the vulnerability to criminal risks that arise from Bitcoin. When it leaves its system and fed into other economic circuits.
