Are Bitcoins going to take over the U.S. dollar and other currencies?
It’s entirely possible. But, only if it is adopted by the masses first. The adoption process will not be easy because several obstacles must be overcome before cryptocurrencies become mainstream. Still, many signs suggest things are headed in that direction. It’s just a matter of time now.
With the rise in popularity and value of Bitcoin in recent weeks, everyone is wondering what it is and how they can get some. The decentralization, relatively anonymous nature, and security of cryptocurrencies have made them an ideal choice for online trading.
This anonymity has also caused many governments to worry about their widespread adoption. After all, if citizens could quickly transfer money without the government monitoring it, what would stop them from using bitcoins to do things that are not allowed by law?
How much of the world’s financial operations are performed in bitcoin?
With bitcoin’s current price at nearly $200/coin, the market capitalization (total value) is close to $2 billion. This may seem like a lot, but considering that the U.S. dollar is used in at least 90% of all global economic activity.
In our estimation, bitcoins will eventually be used for somewhere between 5% and 30% of global economic activity.
8 Things Will Happen If Bitcoin Take Over Us Dollar
- Financial institutions around the world will change
Bitcoin and cryptocurrencies, in general, present a lot of opportunities to banks. They can improve their online services by taking advantage of the technology behind bitcoin, like the blockchain. At last, they can provide better business analytics as transactions occur on their platforms.
- Bitcoin will change the laws
Bitcoin brings something new to the table, and that is transparency. Governments worldwide cannot stop it, but they can tax it just like anything else. They may need to change laws regarding money laundering and illegal activities to prevent widespread adoption or face penalties for imposing ineffective measures.
- There will be a shift in power
Bitcoin and cryptocurrencies will decentralize global finance. No longer can the governments of G20 countries control it. Still, that role is expected to decrease significantly as all transactions become peer-to-peer, freeing them from their grip over time.
- Banks will become redundant
The need for banks and financial institutions to exist is unclear, especially if the role of these institutions in the global economy comes down to money transfer and storage. However, the coin has already provided a solution for storing value securely and transferring it between parties efficiently without the use of third-party intervention, and that’s just the beginning.
- The Treasury will see reduced revenue
The income of the U.S. Treasury is expected to be slashed by nearly $500 million in 2015 if bitcoin becomes mainstream. This is because there would be little need for them to print money and collect taxes on physical cash like most people do today, making their source of income shrink significantly. If this happens, the U.S. Treasury will need to reassess its income and expenditure.
- The American Dream will change
Due to the lack of control by the government, there is a heightened belief that people can do what they want with their money without fear of any repercussion or penalty from the state. This means that citizens may choose not to save money for their retirement or even pay taxes. This may become a problem as more people start spending their income as soon as they get it, and the economy comes to a standstill leading to its inevitable collapse.
Conclusion:
Bitcoin and cryptocurrencies, in general, hold a lot of promises to the world, and it’s just a matter of time before some significant changes take place. Learn more or visit this site. It is becoming clear that the new age concept of decentralized finance will be embraced by many worldwide. or interesting
However, you cannot deny that some concerns need to be addressed, such as regulation, compliance with existing financial agencies, and bitcoin volatility. Make sure you buy bitcoins with proper assurance and take care of your running transactions and their reliability with a proper eye on them.
