Thursday, April 9, 2020

Why Bitcoin is a revolution in terms of financial system?

The Takeaway:

It has been over a decade since the inception of bitcoin. Satoshi Nakamoto created bitcoin after the financial crisis of 2007-08, and it has risen quite a lot in the last decade. In this article, we discuss why bitcoin is considered a revolution in terms of the financial system.

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The bitcoin network came into existence on January 3, 2009, when the creator Satoshi Nakamoto mined the genesis block of bitcoin. The value of one bitcoin was worth less than a dollar when it was created, which later peaked at around $20,000 in 2017. But it is not just the value of bitcoin why it is hailed as a revolutionary financial system.

 

Separating money from the state

The current financial system in the world is inseparable from the state and requires each person to trust institutions like banks with their hard-earned money. Bitcoin being truly decentralized, bitcoin gives the control of money back from the state to people. Alone this feature makes bitcoin a revolution in terms of the financial system. The technology that allows bitcoin to be decentralized is blockchain, a digital ledger where each transaction is recorded permanently, and anyone can access that ledger. Platforms like the bitcoin revolution app can play a key role in bringing more people on board for bitcoin. 

 

Bitcoin: An alternate financial system

Bitcoin, in itself, is a financial system that can act as an alternative to the current financial system. Bitcoin allows each person to act as his own bank and not depend on financial institutions that are under governments. However, for bitcoin to reach its full potential majority of the people need to use bitcoin as a currency. Some experts believe that the mass adoption of bitcoin is inevitable. 

Note: Bitcoin transactions are pseudo-anonymous.

 

Why Bitcoin is better than fiat currency

Bitcoin is better than the fiat currency in several ways. The central banks all around the world have the power to print an unlimited amount of notes, which lowers the value of money over time. Bitcoin, on the other hand, is limited, and only 21 million coins can exist. This feature of bitcoin would allow the value of bitcoins to not decrease over time like fiat currency. 

Note: the last bitcoin is expected to be mined in the year 2140. 

 

Why bitcoin revolution is inevitable

The financial system has evolved with technology over the centuries as we have gone from the age of barter system to adopting money because it was more convenient and useful. In the age of the internet, a currency that relies on the internet and gives control back to the people from the hand of states can potentially be seen as the next step in the evolution of the financial system. 

 

Conclusion

Bitcoin is not just an alternate currency or beneficial store of value. Bitcoin represents an ideology that seeks financial independence from the established institutes. Governments have tried to restrict bitcoin, as it is decentralized in nature, no one has the power to censor it. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Glenn Harper
Glenn Harper
Glenn has only two interests: Bitcoin and Aviation. After completing his graduation from San Diego State University in 2006, Glenn started working in the airlines and aviation industry. Aviation was his only passion before he came to know about bitcoin in 2012 after which he decided to dedicate 8 hours of his day for aviation and 8 hours for learning and writing about bitcoin and the technology behind it. Glenn lives with his wife and a 7-year-old son who mines ethereum on his computer and is also quite passionate about cryptocurrencies.

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