As Bitcoin is gaining popularity among investors day by day, the question arises if it can ever take the position of conventional currencies.
Bitcoin stock price has rallied up significantly since the previous year. The recent upheaval in its price created confusion among investors but it still remains the most preferred and trustworthy cryptocurrency in the world. Supporters of BTC are even assuming that it has the potential to surge above $100,000 in the future.
Bitcoin Vs Money
But the question about whether this cryptocurrency can be a preferable alternative to money is surely interesting. According to an expert, people are heading towards cryptocurrency because of their lack of faith in traditional currency. As the interest rates of government currencies keep dropping, cryptocurrencies have become a better choice for investment. Bitcoin is now being considered as the ‘new gold’.
But Bitcoin still fails in its competition with government currencies. Money is more preferable while purchasing our daily commodities. As the value of money is stable, it is more reliable than cryptocurrencies. Bitcoin cannot probably replace money if its value is not stable.
Money plays the most significant role in our economy as we make contracts through it for a house mortgage, insurance, and multiple other activities. In this regard, cryptocurrency fails to satisfy our requirements.
The supply of BTC still remains limited and fixed. Whereas the money supply can be regulated according to the economy.
Thus while cryptocurrency is now the most favorite digital asset for traders currently, it remains quite behind in its competition with money. To challenge the conventional currencies, digital currencies need to be more user friendly and easily available. It must have a stable value so that it can be utilized for the purpose of making contracts. These are the most important conditions that must be followed by cryptocurrencies to become a dependable alternative to government currencies.
