How we understand the value of an asset, the dollar which is a piece of paper not have any intrinsic value, if the dollar, Euro, or Chinese Yuan digitally transfer to other parts of the world does not mean that these currencies show a parent-child relationship with gold mines, such intangible assets depend on collective belief, people adoption make the true purchasing power of currencies, the same is true for gold, however, it is scarce but mass acceptance on gold value make this metal precious, the value of gold not from its scarcity but overall acceptance, if the scarcity is the base of value then many types of radioactive waste are most scare in this world, the general acceptance among the population is fundamentally important, if everyone on this world agrees not to accept the gold then this metal becomes useless and worthless.
Bitcoin existence based on general belief in its value but compared to USD, EURO, and gold, it is purely computerized code, exists on the internet network, and uses computer hardware, it is not like a traditional currency system that one must keep in wallets, pockets, and save in some safe place, Bitcoin from its birth shaken the confidence many times of its users, previously, experts marks it is the bubble and it will burst sooner or later, but after all, it survived in last decade, how much the turbulent time last decade Bitcoin show the true usability of computer-generated code, it is proven technology that solves our serious problem of value exchange.
Unlike other value exchange system, Bitcoin should pass the essential requirements of human intervention, the government regulatory agencies around the world are keen to eradicate the illegal behavior of crypto assets, how people access cryptocurrencies, how regulation impacted the restriction or modification in the usage of technology, after general acceptance the geopolitics of the humans also impacted the technology, after all, blockchain technology is designed for humans, and a group of humans has diverse interests and preferences, it is a technology that is same in every corner of the world if the minor change occurred in this technology then its must exhibit in every node of the network, we humans not face this situation before, the human population divided among different groups on different regions, therefore, they have different religions, priorities, and preferences.
The COVID-19 pandemic is a global problem, during this pandemic people trapped and working indoors, paying for everything with digital currencies, and working remotely, this pandemic change the population view of internet technology, users of the internet not only depend on the technology but they trust, they understand it is unbiased, non-discriminative and gender-neutral.
Our traditional financial system subjective to massive errors especially Inflation and economic difficulties, population over diverse regions invest in Bitcoin only for long-term economic concerns, our social society faces many problems for example quantitative easing policies, higher wages, cheap borrowing funds, all of these factors lead to high inflation and declining consumption power, Bitcoin becomes so much important due to its decentralized nature and anti-inflationary strength that increases the profit for its holders. Bitcoin along with Ethereum, Litecoin, and even Dogcoin serve the same purpose to reduce the past problems of our mankind.
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Source: https://medium.com/cryptocurrencies-ups-and-down/the-true-power-of-bitcoin-caf8bbe1a67?source=rss——-8—————–cryptocurrency
