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Bitcoin is derived from two diversified terms, the foremost is a bit, and the second one is a coin. Bit demonstrates a unit of the database in computer, whereas coin represents the currency. The name of this digitalized coinage demonstrates that bitcoin is a lethal mishmash of financial aspects and technology.
Bitcoin, the first of its kind, was the foremost cryptocurrency that was introduced in the marketplace by a Japanese programmer named Satoshi Nakamoto. He composed bitcoin for facilitating international and domestic transactions; all the more, it was generated with the support of government authority.
Recently the CEO of Twitter said that bitcoin would be the upcoming single world currency in 10 years. The statement of the Twitter co-founder has astonished everyone. Is it possible that bitcoin can be the one world currency? Let's evaluate the facts and checkout.
Is Bitcoin the Next One World Currency Under One World Government?
Undoubtedly bitcoin is subjected with an exceeding extent of potential to act as a one-world currency. However, conferring the robust sources, bitcoin still lacks ample abilities when it comes to impact the entire globe as a one-world currency. As per the robust source, the one world currency will merely arrive when there are incidents of fruition. If you want to earn money through bitcoins, then you can visit bitxtapp.com.
Bitcoin is a decentralized cryptocurrency subjected to tons of elating features such as anonymity, liability, and many more. The fact that might amaze you is that bitcoin is already considered a one-world currency in few regions. However, it is not backed up by any government authorities, and this is one of the prominent reasons where bitcoin is already prohibited.
China has banned bitcoin.
Bitcoin is highly volatile by nature; the fluctuations rendered by the complexity of bitcoin are enormously wide. In order to aim for financial stability, the Chinese government has already banned bitcoin and other cryptocurrencies. China contributes a gigantic buck to the global economy, and China has already prohibited the utilization of bitcoin, which demonstrates that bitcoin cannot act as a world currency.
Several Other Contenders!
As mentioned ahead, bitcoin is a potential payment method and but still, it is not suitable to act as a world currency as other contenders are pretty stable in contrast to bitcoin in terms of behaving as a world currency. The fact might amaze you that fiat currencies like US dollars, Yen, and Euros are correspondingly capable of acting as world currency.
Following the similar concept of bitcoin, there are tons of digitalized coinage in the marketplace and to be processed more than 9000 cryptocurrencies. In a nutshell, bitcoin is not the only cryptocurrency equipped with decentralization features. Still, these are predictions, and you cannot claim what will happen in the future.
More Of Store Value!
Every currency present is equipped with a store value as it is the prominent character of currencies. Bitcoin is correspondingly equipped with a store value and the store value of bitcoin is just exceeding. The virtual currency is utilized more as a store value and much less as a currency, and you might be familiar with the fact that almost every participant of the stock market has added bitcoin to their portfolio.
However, in contrast to the investment, the acceptance of bitcoin as a payment method is nominal as there are only a few businesses accepting bitcoin as a payment method, all the more individuals prefer to hold bitcoin for a much more extended period due to the return of investment offered by bitcoin complex.
Tesla Motors announced to accept bitcoin as a payment method in March 2021. Crypto watchers are familiar with the fact Elon musk's tweets inclined the store of value of bitcoin to an exceeding extent. However, on the 13th of May, Elon musk correspondingly the acceptance of bitcoin as a payment for goods and services of tesla motors due to fuel emission of bitcoin mining.
Bitcoin mining is the essential trail of the bitcoin complex. Bitcoin mining energy consumption is one of the significant reasons why bitcoin cannot act as a one-world currency. The energy consumed by bitcoin mining has reached a threshold of almost 130TWh; all the more carbon footprint of bitcoin is nearly 90.3 million metric tons. The energy consumed by bitcoin mining is constantly inclining and is affecting the environment in an adverse manner.
The limited supply of bitcoin
The utmost prominent reason why bitcoin cannot act as a one-world currency is the limited supply of bitcoin. The inventor of bitcoin issued bitcoin with a limited supply at the very first glance, and the value of bitcoin at the instance of issuing bitcoin was zero. The number of bitcoin which can ever be mined is 21 million, and once the limited supply of bitcoin is locked, bitcoin miners cannot avail more bitcoin units.
You might be wondering when there are no bitcoin units left why bitcoin miners will mine bitcoins. Bitcoin miners avail transaction fees alongside bitcoin as the block reward. If there is no bitcoin left, miners will verify the transaction for the transaction fees. Bitcoin can act as a world currency, but bitcoin is subjected to a short supply, and only 21 million bitcoin units are not enough to circulate across the globe.
Reasons why Bitcoin was considered as one world currency
There are ample reasons why bitcoin is considered as one world currency; some of them are as follows.
Decentralization- Bitcoin is a decentralized cryptocurrency that makes it free from superior authorities.
Potential of a transaction- The decentralization feature of bitcoin demonstrates the potential of bitcoin transactions as you are allowed to carry out a gigantic transaction in a nominal time; all the more, there is a no-limit and geo-based restriction while making transactions utilizing the complexity of bitcoin.
Acceptance of bitcoin- bitcoin is the utmost popular cryptocurrency subjected with an exceeding user base. The market cap of bitcoin is more than 1 trillion dollars, and you can estimate the number of investors who have invested in bitcoin already. These are the mere reason why bitcoin can be utilized as a one-world currency.
The above mentioned are some of the reasons why bitcoin cannot act as one world currency.
Thank you for reading!