The Future of Bitcoin: Will It Become A Global Currency or Just a Hyped Asset?

Image recreated on Canva

Everywhere you look in the media it seems like there’s a new headline talking about how the price of BTC will skyrocket next year. While I do see the benefits from a short-term perspective, it’s hard to understand why so many people are still holding onto it beyond simply using it as a way to turn money into more money. Could they really think that BTC will replace all other currencies?

I like that it has the benefits of a global currency for trading which could make things easier and allow for free transfer of value to anyone in the world without being blocked or confiscated. But the thing that bothers me about BTC is that its value is mostly driven by hype and narrative.

Ethical questions aside, it’s concerning how an entire currency's worth could plummet if enough people say "Ew, Bitcoin, cringe". The USD may be an overblown...well you know...but at least it’s backed up by regulation and military power.

It’s not just my assumption but something that I’ve noticed in the Crypto market - if enough people say "Ew, Bitcoin, cringe" then the price plummets. So, in all this confusion what shall we do?

Firstly, we need to evaluate the crypto space, and decide if people find Bitcoin appealing or not.
Do we think people want a form of wealth that can't be confiscated?

Do we think people want a form of wealth that can be transferred to anyone in the world 24/7 for low fees without requiring anyone's permission?

Do you think people want a currency with a fixed, predictable supply that can't be increased by any government?

If you answered “yes” to all of them then Bitcoin will continue being attractive. So it’s likely to never be worthless.

The big question now is this - can Bitcoin be more valuable in the future than where it is today?
My answer is a definite yes. And it doesn’t even require some utopian future where everyone uses Bitcoin (which could happen but I feel unlikely).
You can imagine a time where the world's wealthy people, institutional organizations, and even governments put just between 2-5% of their assets in crypto.

You may ask, why would they do that? Well, diversification has been proven to be a good strategy in preservation of wealth.

If you have all your money invested in stocks and the economy crashes then you take a large blow and lose much of your net worth.

It’s only natural to want to store some of your wealth in an alternative asset class. Especially one like crypto, which isn’t connected to the stock market (meaning even if the economy tanks, crypto could still rise).

Let's assume just 2% of the wealth in the world goes into crypto, Bitcoin value will see a great raise. The
total global wealth today adds up to around $454.4 trillion. Just 2% of that amount is around $11 trillion. The total crypto market cap right now is valued at $1.36 trillion.

We know that BTC prices are characterized by fluctuations. Up and down is the nature of the market. But, even so, Bitcoin has no army backing it up with laws, and politicians whose only goal is to take away as much money they can from the people.
Not only that but your dollar or euro’s value barely holds anymore compared to a year ago. It’s a very real reason to say "ew and cringe about."

Remember that when the market cap of BTC reaches a certain point, the greater fool theory no longer applies. Even the biggest fish like whales or institutions won't make any waves in the price of bitcoin. When this happens, the price will stabilize and trend up with slight dips here and there. This looks far ahead into the future, but chances are that BTC will have trillions in market cap by that time.
Crypto must be our future. Otherwise we’ll subjugate other states trying to compete for world dominance with state currencies and end up in another World War. We need a neutral financial system in which we trade.

No war can be funded without a financial system. And if one country can print money and take over everything it causes imbalances that eventually lead to conflicts between nations.

The fiat regime is based on countries competing against each other. It’s like winning the genetic lottery if you’re born into a first world country. Your work or skill level can be superior or equal to someone living in the US, yet you’ll never be able to keep up with the same monetary value because of the difference in monetary system and its buying power.

If there is another store of value you can exchange for fiat, It levels the playing field and makes it so anyone can buy bitcoin.

Crypto is barely 15 years old, yet it’s already going through a lot of changes and innovative discoveries. There’s tons of blockchain solutions out there that solve transaction problems quickly. Combine this with AI and we get the potential for limitless BTC and all the other crypto currencies.

One may say that BTC is digital gold because of how much value it holds. It holds strong to cryptography and proof of work. This value comes from an algorithm that humans cannot control.

If BTC were to ever hit 10 million a coin we would still only have 21 million bitcoin in circulation with the last one being mined around 2140.

In conclusion, it's crucial to recognize the potential of Bitcoin as a global currency. Even though it may not completely replace Fiat, it's free from centralized control and supported by its unique features. While BTC's value may sometimes appear driven by hype, the underlying properties and growing acceptance indicate a promising future. Diversifying your investments to include cryptocurrencies like Bitcoin can serve as a smart strategy in preserving and growing your wealth. Embrace the decentralized financial system and be part of the revolution that cryptocurrency represents.

Posted Using InLeo Alpha