Bitcoin is a virtual currency that does not rely on the central government for accounting, but is a completely open source and peer-to-peer network, something unparalleled in the history of the human economy. But are people, their representatives and businesses ready for this new currency?
Bitcoin may be launched earlier than expected in some places and countries depending on the political climate. If a government destroys and destroys its currency, then its popularity will continue to grow. This was the case in Argentina when the government converted local currency-denominated bonds into US dollar bonds at the exchange rate set by the government. The use of Bitcoin in the country has come off the roof after this, and is still accelerating (measured by monthly wallet download).
Cyprus was another good example: when the government tried to hijack people’s money, Bitcoin went out of the country because it is much more fluid globally and can be immediately sent anywhere in the world without the need for government intervention. . This means realistically that the government cannot control the supply and demand of Bitcoins within its limits.
Of course, bad governance is only one side of the equation. The economy promises the other. Bitcoin takes place in places where entrepreneurship is growing and where politics is supportive. The use of Bitcoin by business owners will be more efficient than the payment system in the world based on credit cards, as merchants have to pay 2-4% to credit card companies. If all transactions are in Bitcoin only, without any fiat conversion, the transaction fees for the business are zero. Literally zero. You can send and receive money for free through the Bitcoin network. That’s what makes Bitcoin’s economy so powerful.
Some of the cities that are advancing in this innovation are well-known names like San Francisco and New York, but also entrepreneurial cities like Berlin, which has a thriving Bitcoins market.
When people in a city or country see Bitcoin as a store of value and at the same time see it as a payment system that eases the current burden on merchants, Bitcoin has a chance to take off. It has happened in the past and is likely to happen in the future. Of course, you always need an entrepreneurial spirit and risk-taking to get rid of the decades-old charge, but the good news is that it’s happening all over the world at the same time.