Bitcoin has been making headlines these past couple of years. The digital currency is being used by more and more mainstream brands, including some of the most popular retailers and manufacturers. There are reasons why experts are seeing Bitcoin as a possible future mainstream currency. The question is, is Bitcoin really the future of business finance?
One of the major challenges faced by Bitcoin is making the currency more usable offline. There places that now accepts Bitcoin payments. BitPay, for example, enables users to accept Bitcoin payments without having to worry about exchange rate differences or extremely high fees. It is services like BitPay that makes more and more small and medium businesses to start accepting Bitcoin.
Regardless of the rapid development and acceptance, there is still a huge gap to overcome. Bitcoin is not as popular as other means of making digital payments, but it is certainly a currency that is here to stay. Once more service providers are online and offer the bridge needed to close the gap, Bitcoin can be the future indeed.
As a currency, Bitcoin is fairly safe. It is almost impossible to duplicate or manipulate other than using the predetermined encryption routine. That said, the Bitcoin exchange and supporting services are not entirely secured from hacking attempts and theft. A couple of large exchange providers have been closed for possible fraud and theft, while the existing ones are under scrutiny.
In order for Bitcoin to truly take off as a mainstream currency and the future of business finance, it needs to be organized and regulated. This is against the very principles of Bitcoin itself; it wants to be a currency untied to the mainstream financial institutions. It will take a lot of hard work for the currency to find a comfortable equilibrium and start offering a higher level of security as industry standards.
It is not a secret that the government doesn’t really like Bitcoin as such. Federal and local government have been releasing regulations that are counterproductive when it comes to spreading the use of Bitcoin even more. I doubt businesses would want to accept Bitcoin as a common payment method – online and offline – without proper backing and assurance from the government.
For this to happen, it’s the Bitcoin community that needs to actively pursue the right set of regulations. Under new, better legislation, it is not impossible for Bitcoin to find a solid foundation on which the currency can truly expand and grow to a new level.
Is it the future?
Is Bitcoin the future? Yes and no. Yes, the concept behind Bitcoin makes it one of the best candidates for future business currencies nonetheless. It’s practical, easy to store and very secured. However, it is not ready yet. There are still a lot of things that need to be done before Bitcoin can really take off as a currency that business – and personal – users can really appreciate. In the meantime, keep mining, gathering and trading Bitcoin.
Chances are that in the next couple of months, or in the year of 2016, we will have a clear answer on whether bitcoin really is the future currency of the world, and whether it will become mainstream or not. However, if it does become mainstream, then there are great possibilities that governments will try to impose certain rules limiting the use of Bitcoin, as it has the potential of overthrowing the world’s financial system, which is definitely something that governments aren’t looking for.
However, what is your opinion on Bitcoin? Will the cryptocurrency shape the world’s financial system soon? Let us know your thoughts in the comment section below.