With the ban of the utilisation in Russia and all the BTC-e
platforms being traded across the globe, is Bitcoin really affecting the world
in a slightly more downbeat slope, or as many of us believe, is it the currency
of the future. Those of us who believe in the Coin may have to weigh the facts
more before procuring quality trades. This is, after all, a protocol when
trading erratic currency used for years by stock traders alike.
Before the very unfortunate crash of Mt. Gox, one of the
largest BTC digital-money (or virtual-currency) exchange, Japanese finance
minister, Taro Aso, foresaw the unavoidable demise. “No one recognizes them as
a real currency,” he informed reporters. “I expected such a thing to collapse.”
Other professionals, for instance, Larry Kudlow of National
Review Online has expressed disbelief in the stability of the Coin as well
citing, “I totally agree with Mr. Aso. For weeks and weeks I have been tweeting
and broadcasting that bitcoin is not real money. It is not a reliable medium of
exchange, nor is it a reliable store of value. It has no central-bank
regulation, network operations, or even centralized issuance. And because of
its wild price fluctuations, bitcoin can never be a reliable payment system.”
Project entrepreneur Ezra Galston states in the Wall Street
Journal, “without a regulatory framework, credible payment processors — such as
PayPal, Dwolla or Square — cannot service bitcoin exchanges. And because
payment processors are vital for converting fiat currencies into virtual
deposits, bitcoin operators will be forced to move downstream into the black
market.” Mr. Galston closes by emphasizing that “the bitcoin community must
embrace external regulation to ensure that credible vendors may participate in
payment processing.”
However, Bitcoin has surely changed the world within a short
time. As a universal currency, Bitcoin is in many ways the direct opposite of contemporary
fiat currencies.
It has matured in an augmented fashion in utilisation last
year, and all without being affirmed by any position or central bank as a legal
tender. That simple fact renders many professionals in the cryptography
community speechless, who could never have predicted a currency could impulsively
shape and purely cultivate within the current free marketplace. It was
something that was never even conversed of notionally, and is still taking time
to sink in amidst the denials that the Coin is here to stay.
It is important to take note that there are some
jurisdictions that strictly ban all foreign currency such as Argentina while
there are also jurisdictions that may limit the licensing of certain
institutions such as Bitcoin exchanges, an example of which is Thailand. Yet the
Coin incidence is unexpectedly not wholly without preference. Bitcoin is not
the only example of a homogenous “good” being adopted by a population of
enthusiasts, professionals, traders, and miners as a currency, for nothing but
its fundamental accepted value and widespread appeal. We have a much elder
example of that: gold, more than 5,000 years ago. Bitcoin is following the same
path as expensive metals in ancient civilization. Where gold was valued for its
colour, easy pliability, cleanliness and its anti-corrosive properties, bitcoin
is valued for its velocity, decentralization, secrecy , and specially low
transaction costs.
Thus, Bitcoin has surely changed the world as we know it,
and it may be soon before it dominates the financial trading industry and considered
a real and recognised currency.
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