Why Bitcoin Will Succeed
Why Bitcoin Will Succeed
In that sense, Bitcoin is a success. However, there are other standards to consider, such as its actual mainstream adoption and use as a currency or store of value.
Determining whether Bitcoin is a success, or whether or not it will succeed is a complex topic with many points to consider. We’re going to walk through a few of the most important points to show you why Bitcoin will succeed in the long run and why, over time, it will become the internet’s default currency.
Bitcoin Is a Permissionless Bank
If you want a financial services account to send and receive money, make payments, and get a loan, you’ll need to head to a bank. The bank will determine your qualifications and has the final say in whether you can have an account in the first place.
Once they give you the OK, your entire financial existence is mediated and controlled by the bank. Should they shut down one day, you’ll have no say in it, and your money will simply disappear into thin air. It’s happened many times before.
Bitcoin, on the other hand, isn’t controlled by any single group of interests. There is no nation, bank, or powerful individual propping the system up. Instead, it’s people like you and me, in a globally distributed network, that make Bitcoin the most open, free, and trustworthy financial system in the history of humankind.
Bitcoin’s Inflation Rate Will Go to Zero
Central bank-issued currencies like the USD, GBP, EUR, and JPY are inflationary. As time goes by, inflation rates for those currencies increases, meaning the authorities regulating their supply issue more of them. Over time, and with enough inflation, currencies lose their value, becoming only partially as valuable as they once were.
Bitcoin, in contrast, is anti-inflationary. Every four years, the Bitcoin block reward is cut in half. The block reward is the mechanism by which BTC inflation is controlled. Eventually, Bitcoin’s inflation rate will be zero, meaning no inflation, once the 21 million BTC supply is entirely issued.
The original Bitcoin code programmed 21 million BTC as the maximum supply limit, making it impossible for there ever to be more BTC than that. With a cap on supply and increasing demand, Bitcoin’s value is projected to rise as time passes by.
The Internet Currency
Bitcoin is being written into the fabric of the Web 3.0 at the protocol level. As new internet technologies are developed and released, spending, sending, and receiving Bitcoin will be as simple as sending a text or an email.
The main obstacle to Bitcoin adoption is practical usability. Just like when email first debuted, people simply thought it was too complicated to use. However, as time went by and developers made it more streamlined, it eventually became just as useful as the telephone.
With time, developers will do the same for Bitcoin, bringing it to a new audience of users who will natively understand how it works.