Will bitcoin impact your future?
If it is hard to imagine a bitcoin impact on your future, then this post is for you! Understanding what bitcoin is might be the first step to determining whether it will influence your future, and how. If you’ve read up, you know bitcoin is decentralized digital currency that can be transferred from person-to-person without government or bank involvement. Now let’s look at why that’s important and why you should care.
Bitcoin impact on us personally and business-wise can best be understood by looking at the elements and characteristics contributing to its importance. Compared to a bank account which requires certain documentation, minimum deposits, etc., anyone can own bitcoin just by creating a wallet. Compared to paper fiat money that can be printed by governments at will, bitcoin is limited to 21 million Bitcoins – ever, plus it can’t be faked, multiplied, or confiscated. Transaction fees are far less than money transfers from banks or services regardless of whether you are sending $10 or $10M to someone in the same country or abroad. Lightning fast transfer from one person to another is safe and recorded on a world wide ledger called the Blockchain, which is completely transparent. Bitcoin is becoming more trusted, certainly more so than many fiat currencies.
“Stocks, traditional currencies, and commodities generally move on company announcements, government policy, and technological developments, while bitcoin and cryptocurrency prices do not. The crypto evaluation metrics are being developed and do not have the stocks, bonds, currencies, and commodities decades or centuries of price discovery. This means simple technical analysis tools, support and resistance points, psychological barriers, investor sentiment, trends, and momentum indicators work well. Indexica has recently found that bitcoin has matured as an asset and there has been a “coming of age” for it over the past few years, based on the study of language used in thousands of text documents.
“We tested bitcoin and other major cryptocurrencies, including ehtereum and bitcoin cash, in the same way we’ve tested popular stocks and traditional currencies. From our extensive research, and we’ve done more testing around bitcoin and cryptocurrencies than we have for pretty much any other asset we’ve analyzed, it simply appears the bitcoin price and crypto markets just don’t respond as we would expect them to.”
There are many comparisons of bitcoin to everything from tulips to companies, gold to the internet – but most of these comparisons are useless for determining the importance of Bitcoin. Without a measuring stick, many lack the ability to understand the bitcoin impact relative to the world economy. Since gold and bitcoin have a lot in common, such as a limited supply that is mined for profit, it is little wonder how the moniker “digital gold” has caught on to describe Bitcoin. Currently, gold is viewed as the most important store of value in the world economy. Nations peg their currency to it, hoard it, and go to great lengths to acquire and protect it. Just like gold, bitcoin is the most trusted and valuable of the cryptocurrencies. As governments become the largest buyers of Bitcoin, the price will continue to be pushed to new highs.
Neither gold or bitcoin generates any income, but as a store of value both are perceived to have limited supply, and both are purchased by investors looking to hedge against depreciating fiat currencies. Both are fungible and divisible, and can be bought or sold through decentralized transactions requiring no middleman. Bitcoin can be sent across the world easily and inexpensively, gold cannot. Bitcoin can be stolen by hackers of a wallet or exchange, gold cannot.
The bitcoin impact on individuals, society, and business has yet to be fully realized because the effects will not materialize for some time yet. Bitcoin is growing stronger in countries with high taxes, transaction fees, and government controls on hard currency.
Younger adults have become comfortable using cryptocurrency and the various exchanges and wallets. More people are overcoming the complexities of the crypto space as user-friendly services emerge to help spur adoption and growth.
As more people become aware, educated, and comfortable, vendors will start accepting cryptocurrency on a larger scale.
Recent surveys show that 84% of companies polled are actively involved with blockchain and seeking new avenues for future growth as the technology continues to emerge. Investors are adding cryptocurrency to their portfolios, while institutions and governments are becoming more interested. It is just a matter of time before mainstream products, companies, and entire new industries emerge that will surely cause many to wonder why they never saw it coming.