Whether you are familiar with Bitcoin or not, this virtual currency and the technology behind it are going nowhere. Today, even prestigious university endowments with affiliations to Stanford, MIT, and Harvard have investments in crypto funds.
Initially, people thought of Bitcoin as a currency for criminals. However, this digital currency has built its credibility. If unsure about this, search online, and you’ll realize that everything is optimistic about this digital asset.
So far, this cryptocurrency is working on its way into the world of mainstream finances, achieving critical and scale mass that could make restraining or dislodging it difficult. With a market value of approximately $1 trillion, this virtual currency is too influential and significant to stay on the financial fringes.
Bitcoin’s Widespread Mainstream Adoption
The ever-increasing mainstream adoption of this virtual currency is the Holy Grail of cryptocurrency. Currently, many people see Bitcoin as a provocative and innovative asset or money. However, Bitcoin remains a popular subculture among the small and growing percentage of the human population.
At the same time, the growing distrust in the traditional financial system, support from banks and other institutions, and the desire to use crypto to store value is driving Bitcoin use. Here’s what is likely to happen if Bitcoin goes mainstream.
Bitcoin Would Become the Major Currency of the World
Crypto enthusiasts and Bitcoin lovers always dream of a day when Bitcoin will be the world’s primary currency. In that case, fiat currencies would become worthless. But how can this happen? Essentially, this would only happen if the world experiences a severe economic depression or downturn, making Bitcoin and other virtual currencies more attractive to the human population and institutions. With decreasing fiat currencies’ value, businesses and individuals would invest more in Bitcoin.
Nevertheless, it’s not easy for a central bank-issued currency to become worthless. That’s because a government may not continue functioning if this happens unless it starts collecting taxes and operating in Bitcoin. Again, most governments won’t accept Bitcoin because the move would deprive their oversight and control over their monetary systems. And this explains why some governments are outlawing Bitcoin.
More Digitization and Decentralization
The Internet of Things is a big thing in the world today. This technology enables devices to connect and transact. If Bitcoin acquires mainstream adoption, companies and businesses that use the Internet of Things devices will obtain information from other sources and pay using this virtual currency. Some consumers will receive micro-transactions in exchange for information in their IoT devices in their homes. Thus, Bitcoin will either be value storage or payment method in a highly digitized world.
Additionally, more people will use crypto exchanges like bitcoins-era.com to acquire and sell Bitcoin. These online platforms allow people to purchase or sell their virtual currencies quickly.
As businesses try to attract more customers, they use any innovation that appeals to their target markets. That means more companies could embrace Bitcoin and use it as a payment method when transacting with customers.
Centralized Cryptocurrencies Could Emerge
While Satoshi Nakamoto wanted Bitcoin to be a decentralized, global currency, governments could also issue centralized cryptocurrencies. Ideally, no government wants to lose oversight or control over its financial system. Therefore, central banks and governments could eventually issue their centralized digital currencies. And centralized digital currencies could gain mass usage due to the central banks’ pre-existing monopolies.
Parting Shot
It’s uncertain how things would turn out if Bitcoin acquires mainstream adoption. However, such a development could make fiat currencies worthless. But it’s hard for a government to continue working with worthless fiat money unless it uses Bitcoin. At the same time, not every government will allow citizens to use Bitcoin because that would deny it oversight or control over its financial system. Nevertheless, how things turn out is a matter of time as more people and businesses adopt Bitcoin.