When the world of cryptocurrency was just getting started, it was only seen as the most obscure of niche topics. Moving forward just a few years, and people were suddenly talking about Bitcoin taking over the financial world and replacing traditional currency. While a lot of that talk was hype, there has been a lot of progress since then in developing Bitcoin. Could it ever be a ‘real’ currency though?
Bitcoin Basics
The core concept behind Bitcoin and other cryptocurrency is that, unlike fiat currencies controlled by governments, these currencies are controlled only by the market. It means that no single group can manipulate any part of them, although it also means they are prone to major value changes as they are not regulated in the same way.
Bitcoin has found a lot of support traditionally with online industries, particularly remote services like casinos. It has seen a high level of acceptance in that particular area, not only as just a payment option but as a selling point in dedicated Bitcoin casinos. This is because it is seen as extra secure for transactions, which is vital in that type of industry where high-value exchanges are common. Some major online retailers now offer it as an option for the same reason.
As A Regular Currency
The grand plan behind Bitcoin was always to make it just as legitimate and accepted as any regular national currency. This would mean making it available to use for everyday activities such as shopping or paying bills, but on this front, the progress has been slow. While individual businesses are willing to take the risk, the volatile value of Bitcoin means that national bodies have been hesitant to put it in place as legal tender.
The most common practice for using Bitcoin for offline transactions is to first pass it through a digital wallet such as PayPal or Skrill. These services can generate a virtual card that will register on PoS machines, and in some regions, Bitcoin can be deposited and converted into fiat currency that case be used in this way.
Legal Tender?
For any currency, becoming legal tender in a country means that businesses would be required to accept it for transactions, and the scale of that is currently too large for most nations. The bold idea currently in place in El Salvador is the exception, with the country being the only one to give crypto legal status. Economists are watching this case carefully, as it’s unknown territory.
In the meantime, several governments have announced plans for a digital version of their own currency. To be clear, this is not cryptocurrency as it’s still linked to the original fiat version, but it would make digital card readers more of a necessity. It’s still slow progress but the groundwork for future Bitcoin usage would start to appear in this way.
Of course, as with anything to do with Bitcoin and crypto, no one is entirely sure what tomorrow will bring. Like world leaders and economists, the best thing to do right now is wait and watch.
Also Read: Navigating the Bitcoin Halving: Is It a Good Time to Buy?
