Bitcoin: The Future Of Money
- Posted on Apr 7, 2017
Bitcoin is taking the world by storm, and looks like future of money. Recent overtake of Gold price was an example. Let’s try to understand it further.
The money has worked as a way to exchange from the ancient times. However, the money has gone through five different stages of evolution in the human world that consist of commodity money, metallic money, and paper money. After that, it becomes money of bank and lastly, cryptocurrency.
Throughout the history, the silver and gold coins worked as a way to function in the form of direct metal- metal coins. However, the real money with intrinsic value was completely stopped in 1971 when the agreement of Bretton Woods collapsed.
Presently, the international financial system is considered by the majority of economists and thus requiring instant reforms. However, the debate related to the proposing solutions is rarely enlightening and reckless. The proposed solution consists of quantitative easing, belt tightening, etc. But there is a major point missing in these solutions known as money, which is the heartbeat of the economy.
The bankers have created a debt simply in the form of modern fiat currency and are the main reason for all the main economic problems. For eliminating the negatives in the paper money and for bypassing central banking, some cryptologists, computer programmers, economists, and mathematicians are working to allow the establishment of a fair method of the transaction in an economy. There are many among them who have put forward the name of crypto-currencies and its well-known representative Bitcoin.
Bitcoin as Digital Ledger
Bitcoin can be defined as a digital ledger at the base level, which consists of name and balances of several people exchanging money with each other by exchanging this ledger. A peer to peer network and transactions are recorded by the bitcoin in a public ledger named blockchain.
There are many fashion stores, IT professionals and pizza parlors who are accepting the bitcoin as a way of payment for their services. According to the majority of experts in the economic world, having only one currency with an intrinsic value will be an ultimate fate in the near future.