Sat 02 Sep 2023 ▪ 8 min reading ▪ by Luc Jose A.

If you have not yet invested in bitcoin, if you have been content to invest in other less expensive cryptocurrencies, if you still doubt the long-term viability of BTC, this article will do you good. We share with you what makes BTC a currency capable of defining the future of global finance. Read instead.

A bitcoin coin followed by the name of the crypto

Bitcoin: alone against all, yet it reigns supreme

Although it tends to occupy an increasingly large space on the financial market, bitcoin stands out from other assets by its particular characteristics. Indeed, unlike fiat currencies like the dollar and the euro, it does not depend on a central bank or a government.

Unlike altcoins, holding it does not confer ownership of a fragment of a property or business. Unlike raw materials or precious metals, it has no intrinsic value.

Unlike bonds, it does not give the right to reimbursement of a debt at the end of a maturity date. Unlike real estate, it does not generate income or interest. And it is moreover this absence of intrinsic and fundamental value that the financial investment baron Warren Buffet has always repeated his aversion to digital currencies.

In general, defenders of the unviability of bitcoin base their argument on the argument that cryptocurrencies are assets with no real value and are carried by a network that escapes control.

However, whatever anyone says, a single Bitcoin can be worth up to tens of thousands of euros. However, BTC is attracting more and more individual and institutional investors all over the world. How can we understand the rise in power of this cryptocurrency whose market capitalization is now estimated in hundreds of billions of euros? Very few conservatives can understand the bitcoin phenomenon.

Why do we prefer BTC to other currencies?

To understand the bitcoin phenomenon, we must study the collective conception relating to money. In fact, the human being is by nature a speculator. He holds the money because he knows that this money will allow him to acquire goods and services. Why do we tend to prefer to hold euros rather than yen, for example?

Quite simply because by holding euros, we assume that we will have a relatively easier time exchanging them for goods or services. The choice of the euro also assumes that this currency is considered a better store of value than the yen due to the geographical setting or context.

If this is the case, then why do people prefer to hold BTC over other assets? Why do they prefer to store value in bitcoin assuming it is a good store of value? Because BTC users are counting on the cryptocurrency's ability to be exchanged for goods, services or currencies in the future.

Just remember that there was a time when cryptocurrency was worth less than one euro and there was another time when it was worth more than 63,000 euros. This clearly demonstrates that BTC has characteristics that make it attractive and effective as a currency.

Bitcoin, the currency by the people for the people

The strong interest of investors in BTC demonstrates the public need for a decentralized currency capable of serving as a means of exchange and performing without the control of a central public power.

In countries accustomed to currency devaluation and in regions where property rights lack the necessary authority, bitcoin can represent a crucial alternative.

In fact, bitcoin is exchanged peer-to-peer, that is to say without the intervention of a third party. People can therefore convert their wealth into BTC in complete transparency while preventing banking players from having a look at their account balance. They can also transact with each other without an invisible eye having all the details of the transaction.

On the other hand, the ability of cryptocurrency to be divided into infinitesimal parts and the impossibility of counterfeiting it reinforce its appeal and can justify why so many individual and institutional investors are interested in it to protect their savings from inflation.

Although the United States currently has the largest number of crypto users using BTC as a store of value, it is the unique monetary qualities of this cryptocurrency that contribute to its popularity.

BTC: the digital asset that improves the way we use money

The monetary qualities of BTC are now irrefutable. Even though cryptocurrency has no intrinsic or fundamental value as those who do not believe in its long-term viability repeat, it has an exceptional level of utility.

It provides protection against inflation, devaluation, theft and the dictatorship of political powers controlling the global financial infrastructure. From this comes a reality. Bitcoin is not just a de facto recognized form of currency. It is also the future of money. It will serve to improve the way we own and manage money.

In other words, cryptocurrency is here to stay. Even if its volatility can sometimes cause serious losses to unseasoned investors, the adoption of cryptocurrency is clearly increasing.

Moreover, the trend of initiatives in the world of finance confirms this. Large international payments companies have, in turn, integrated crypto services into the range of their financial services, just to take advantage of the potential of digital currencies.

We recently heard MasterCard's director of crypto and blockchain declare in a recent interview that the future of finance will be based on three elements, namely CBDCs, stablecoins and tokenized bank deposits.

If he failed to indicate the place of BTC in the new version of global finance, you should know that bitcoin could influence the pace of the financial system in the future.

It is therefore impossible not to integrate it into the next global financial infrastructure. To go further, we could even say that the price of the cryptocurrency will not stop at six figures, because we agree that BTC has incredible surprises in store for the future.

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Luc Jose A. avatarLuc Jose A. avatar
Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.

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