Can Bitcoin be the solution to decentralized banking?
There is an excellent debate between distinguishing assets and liabilities on a centralized or decentralized basis. The government’s intervention is the mark of separation between the two and has created a buzz nowadays.
The physical money- Fiat cashUsually, we use the services provided to us in exchange for some economic asset which is cash. This cash is a physical entity that needs no explanation and can be seen and felt with the eyes and touch respectively. Before cash as a monetary asset was devised, the barter system was more common wherein goods were taken as economic assets and were used in exchange for services provided. These goods were Then used either for personal use or to find their way back into the cycle. Similar is the case with fiat money. The coins and bank notes are sued in exchange for some goods or services and are mostly controlled by the central authorities of a particular government. Every country has a central authority known commonly as the finance ministry wherein the central bank manages and controls the flow of banking and its services.
Bitcoin as a digital cash
Bitcoin is the leading cryptocurrency having an impressive economic and monetary value. Not only this, bitcoin being the oldest and most popular cryptocurrency is very important in the field of banking and investments. The scope of Bitcoin, as compared to the time of its inception has completely changed and a vast number of doors and opportunities have opened since then. Leading to this, many financial experts have already regarded Bitcoin as to be the leader and future of investment and banking. Also, the impact of Bitcoin is so large that Bitcoin is sometimes regarded as digital cash or digital gold!
Use of Bitcoin in the fieldBeing the largest circulated cryptocurrency, Bitcoin has managed to sneak its place in almost every platform that respects people's modes of communication. Many e-commerce sites have already added an extra option to go cashless in the form of paying through Bitcoin. Many shops and physical outlets have also started rolling services in terms of bitcoin and are accepting payments in the form of bitcoin. Not only this, many countries that were totally in opposition to Bitcoin before the pandemic hits the globe are now openly supporting the same. Many countries have already legalized the circulation and usage of the same and thus Bitcoin is thus supporting the economic condition of these countries.
Future of bitcoin
The future of bitcoin is shining and bright and as a result, there is no slowing down of bitcoin anytime soon! When compared to other cryptocurrencies, it can be seen that Bitcoin is the most popular cryptocurrency still, and thus this popularity is not going to tarnish. Every field almost is now covered by this digital mode of payment and adds to the shine of Bitcoin as a whole!