Since its launch to date, Bitcoin has gained great popularity and adoption. Becoming the most important and used cryptocurrency throughout the world. And maintaining this position with a market capitalization that exceeds all other existing cryptocurrencies.
In 2009, Bitcoin emerged as a monetary alternative to the situation suffered due to the Global Financial Crisis of 2008. A situation in which millions of people were left without jobs and with a deep liquidity crisis. Which led to many other negative aspects for the entire society. For this reason, in 2009 the enigmatic Satoshi Nakamoto published the first version of a software that would revolutionize our way of seeing money, Bitcoin.
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As many will already know, this event was not a mere coincidence. In the first mined block of Bitcoin, Satoshi Nakamoto introduced a headline that would mark the beginning of the transition from our traditional financial system to a completely different one. In it genesis block of Bitcoin you can read: "The (British) Chancellor is considering a second bank bailout program". A headline that referred to the measures that central banks would begin to implement to try to counteract the effects of the financial crisis. But most of them left the population unprotected.
Therefore, the creation of Bitcoin meant a promise of hope for all those people who were affected by the measures taken by governments and central banks. Pointing the way to freedom, autonomy and absolute control over your own funds and assets.
Bitcoin: The birth of a new form of money
Thanks to its design and its potential features, Bitcoin was born as a new form of digital money. This system, and cryptocurrency at the same time, was designed with the purpose of developing a completely decentralized system. That it could not be manipulated or affected by the measures or actions that third parties may take.
Likewise, Bitcoin is an open system where anyone, anywhere in the world, can access it freely. transparent and trustworthy. For what it currently represents, a monetary and exchange system with better capabilities than the traditional financial system. Furthermore, being a decentralized system, its value cannot be affected by external factors as is the case with fiat money.
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Qualities of Bitcoin compared to other traditional forms of money
Bitcoin, compared to the two traditional forms of money used globally, far exceeds several of their qualities. For example, fiat currency (the euro, the dollar, others) can be fungible, portable, easy to manage and sovereign. While gold does not; since this precious and heavy metal is not easy to handle or carry. Can you imagine paying for your purchases with gold coins? Maybe a pair of these won't be heavy or uncomfortable for you. But it would be enough to have to make a large purchase to begin to feel the discomfort of carrying them with you.
Likewise, gold, thanks to its characteristics, can be a very durable good. While fiat money is prone to wear and tear from constant manipulation. Which causes banks and governments to print disproportionately more banknotes, devaluing the value of the currency.
Thus, Bitcoin, compared to these two forms of money, has many more characteristics and properties, which equal and even surpass those of gold or fiat money. In this sense, Bitcoin is highly fungible, portable, divisible, secure and easy to manage. So it can easily be used as digital cash. In addition, Bitcoin is not wearableNo matter how many times you use the coins to make purchases or pay for services, the bitcoins will not wear out.
In addition, Bitcoin also adds other interesting characteristics, which give a plus to its qualities as money. This cryptocurrency is decentralized and programmable.
Bitcoin Position in Current Markets
Bitcoin, being the first successful cryptocurrency to hit the market and having all these demonstrable characteristics, has positioned itself as the reference token compared to the other cryptocurrencies that were born later.
Currently, countries like Japan has already adopted Bitcoin as legal tender in its territory. In addition, there are other initiatives by governments that support the use of this cryptocurrency in a way that is much more integrated into society.
However, there is still a long way to go before this cryptocurrency can consolidate itself as a widely used asset throughout the world. According to the opinion of Tomás García, an expert in Cryptography and Blockchain, it is necessary to define a category where cryptocurrencies can be included. That allow them to be cataloged and described as a good or asset for the purposes of public administration. This step would make Bitcoin and other crypto assets a more precious and used asset than they already are today.
Likewise, 2019 has been a great year for cryptocurrencies, especially for Bitcoin. At the beginning of the year, the co-founder of Twitter and CEO of Square, Jack Dorsey, stated on his official account that Bitcoin would be the most important currency in the world in about 10 years. Ensuring that the usefulness of Bitcoin goes beyond investment as an asset.
Likewise, at the end of 2019 it was estimated that more than 15 million people had active Bitcoin wallets. And that the latter exceeded 45 million wallets created.
Another interesting fact regarding Bitcoin was the growth of merchants and retailers who began to accept Bitcoin as a form of payment. In the United States the growth was close to 36%. Something that was reflected in the network, which by the end of 2019 was already processing almost 400.000 transactions a day.
Continue reading: Tomás García tells us about Bitcoin, Blockchain and its impact on the public sector
